Question: issuing bonds at a discount on the first day of...
Issuing Bonds at a Discount
On the first day of the fiscal year, a company issues a $1,400,000, 11%, 6-year bond that pays semiannual interest of $77,000 ($1,400,000 × 11% × ½), receiving cash of $1,233,205.
Journalize the bond issuance. If an amount box does not require an entry, leave it blank.