Question 14.5: Issuing Bonds at a Premium On the first day of the fiscal ye...
Issuing Bonds at a Premium
On the first day of the fiscal year, a company issues a $2,000,000, 12%, five-year bond that pays semiannual interest of $120,000 ($2,000,000 × 12% × ½), receiving cash of $2,154,440. Journalize the bond issuance.
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