On January 1,the first day of the fiscal year, Murray Company issues a $1,000,000, 5%,...
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Accounting
On January 1,the first day of the fiscal year, Murray Company issues a $1,000,000, 5%, five-year bond, receiving cash of $947,560. The bond pays interest semiannually on June 30 and December 31, and is amortized semiannually suing the straight-lien method.
Journalize the issuance of the bond on January 1. (Note: Journal entry needs to show date)
Journalize the semiannual interest payments on the June 3 and December 31 of the first year. The bond discount amortization is combined with the semiannual interest payment.
Determine the carrying amount of the bond at the end of the first year.
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