On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount using the straight-line method. Round answers to the nearest dollar.
What will be an ideal response?
| Interest Expense | 46,583 | |
| Discount on Bonds Payable | 11,583 | |
| Cash | 35,000 |
Business
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Fill in the blank(s) with the appropriate word(s).
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What will be an ideal response?
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Answer the following statement true (T) or false (F)
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