On the first day of the fiscal year, a company issues a $689,000, 9%, 10-year bond that pays semi-an 1 answer below »

On the first day of the fiscal year, a company issues a $689,000, 9%, 10-year bond that pays semi-annual interest of $31,005 ($689,000 x 9% x 1/2), receiving cash of $723,500. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Hide

If an amount box does not require an entry, leave it blank, or enter zero “0”. Bonds Payable

Cash

Discount on Bonds Payable

Interest Expense

Interest Payable

Correct 2

Correct 3

Correct 4 Bonds Payable

Cash

Discount on Bonds Payable

Interest Revenue

Premium on Bonds Payable

Correct 5

Correct 6

Correct 7 Bonds Payable

Cash

Discount on Bonds Payable

Interest Expense

Premium on Bonds Payable

Correct 8

Correct 9

Correct 10