chapter 5

On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest of $24,000 ($800,000 x 6% x 1/2), receiving cash of $690,960. Journalize the entry for the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.

On the first day of the fiscal year, a company issues an $994,000, 7%, 5-year bond that pays semiannual interest of $34,790 ($994,000 x 7% x 1/2), receiving cash of $934,400. Journalize the entry for the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank. Previous

On the first day of the fiscal year, a company issues an $565,000, 9%, 5-year bond that pays semiannual interest of $25,425 ($565,000 x 9% x 1/2), receiving cash of $531,100. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.     Interest Expense       Discount on Bonds Payable       Cash

On the first day of the fiscal year, a company issues an $416,000, 10%, 5-year bond that pays semiannual interest of $20,800 ($416,000 x 10 % x 1/2), receiving cash of $391,000. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank. BD

On the first day of the fiscal year, a company issues an $988,000, 9%, five-year bond that pays semiannual interest of $44,460 ($988,000 x 9% x 1/2), receiving cash of $928,700. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable

On the first day of the fiscal year, a company issues a $940,000, 10%, 5-year bond that pays semiannual interest of $47,000 ($940,000 x 10 % x 1/2), receiving cash of $884,175. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.

On the first day of the fiscal year, a company issues a $6,700,000, 7%, 4-year bond that pays semiannual interest of $234,500 ($6,700,000 × 7% × ½), receiving cash of $6,258,077.Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank

On the first day of the fiscal year, a company issues a $4,200,000, 10%, five-year bond that pays semiannual interest of $210,000 ($4,200,000 × 10% × ½), receiving cash of $4,041,710. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.     Cash Cash     Discount on Bonds Payable Discount on Bonds Payable     Bonds Payable Bonds Payable

On the first day of the fiscal year, a company issues an $440,000, 10%, five-year bond that pays semiannual interest of $22,000 ($440,000 x 10% x 1/2), receiving cash of $413,600. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.     fill in the blank 2 fill in the blank 3     fill in the blank 5 fill in the blank 6     fill in the blank 8 fill in the blank 9

Jacobs Company issued bonds with a $168,000 face value on January 1, Year 1. The bonds were issued at 105 and carried a 5-year term to maturity. They had a 9% stated rate of interest that was payable in cash on December 31st of each year. Jacobs uses the straight-line method to amortize bond discounts and premiums. Based on this information alone, how does the recognition of interest expense during Year 1 affect the company's accounting equation? Multiple Choice Decreases both assets and stockholders' equity by $13,440 Decreases stockholders' equity by $13,440, decreases liabilities $1,680, and decreases assets by $15,120 Increases liabilities by $1,680, decreases assets by $13,440, and decreases stockholders' equity by $15,120 Decreases both assets and stockholders' equity by $15,120

On the first day of the fiscal year, a company issues a $3,600,000, 9%, 4-year bond that pays semiannual interest of $162,000 ($3,600,000 × 9% × ½), receiving cash of $3,264,671. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. blank   Interest Expense Interest Expense     Discount on Bonds Payable Discount on Bonds Payable     Cash Cash

On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays semiannual interest of $147,000 ($4,900,000 × 6% × ½), receiving cash of $4,440,130. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

On the first day of the fiscal year, a company issues a (n) $935,000, 7%, 5-year bond that pays semiannual interest of $32,725 ($935,000 x 7% x 1/2), receiving cash of $878,900. Journalize the entry for the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.

On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays semiannual interest of $212,000 ($5,300,000 × 8% × ½), receiving cash of $5,520,390. Journalize the first interest payment and the amortization of the related bond premium. If an amount box does not require an entry, leave it blank.     Interest Expense Interest Expense     Premium on Bonds Payable Premium on Bonds Payable     Cash Cash

On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 x 8% x 1/2), receiving cash of $884,174. Journalize the entry for the issuance of the bonds. If an amount box does not require an entry, leave it blank.

On January 2, Year 1, Kampai Sushi Bar sold $800,000 of bonds for $785,000. The bonds will mature in 10 years and pay interest annually on December 31. The company properly recorded the payment of interest and the amortization of the discount using the effective interest method. What will be the carrying value of the bonds at the end of Year 1? a.$800,000 b.less than $785,000 c.$785,000 d.greater than $785,000, but less than $800,000

On the first day of the fiscal year, a company issues a $8,300,000, 6%, 8-year bond that pays semiannual interest of $249,000 ($8,300,000 × 6% × ½), receiving cash of $6,901,364. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.   Interest Expense  fill in the blank 2 fill in the blank 3   Discount on Bonds Payable  fill in the blank 5 fill in the blank 6   Cash  fill in the blank 8 fill in the blank 9

On the first day of the fiscal year, a company issues a $6,400,000, 6%, 9-year bond that pays semiannual interest of $192,000 ($6,400,000 × 6% × ½), receiving cash of $5,589,805. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.   Interest Expense        Discount on Bonds Payable        Cash

On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays semiannual interest of $168,000 ($4,800,000 × 7% × ½), receiving cash of $5,101,467. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

On the first day of the fiscal year, a company issues a $4,400,000, 7%, 8-year bond that pays semiannual interest of $154,000 ($4,400,000 x 7% x 2), receiving cash of $4,676,347. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Previous Next Check My Work Save and Exit Submit Assignment for Grading