Question 14.3: Issuing Bonds at a Discount On the first day of the fiscal y...

Financial Accounting

Issuing Bonds at a Discount

On the first day of the fiscal year, a company issues a $1,000,000, 6%, five-year bond that pays semiannual interest of $30,000 ($1,000,000 × 6% × ½), receiving cash of $936,420. Journalize the entry to record the issuance of the bonds.

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