VAL1) Alberto Co. issued 8%, 10-year bonds with aPAR value of $350,000 received in cash andsemi-annually interest payments (June andDecember till maturity date),Required: Journal entries to record:a) Issuance of bonds.b) First interest paid.c) Payment principal at maturity date.

Lets understand the basics.Journal entry is required to make to record event and transaction occur…

Answered: 1) Alberto Co. issued 8%, 10-year bonds…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

XYZ Corporation issued $20,000,000 of 5 year, 9% bonds on April 1 of the current year at face value, with interest payable semi-annually on April 1 and October 1. The bonds were issued at a market interest rate of 8%, resulting in XYZ Corporation receiving cash of $20,811,020. Journalize the entries to record the following transactions: Issuance of the bonds on April 1 Paid the first semi-annual interest on the bonds on October 1 Is the semi annual interest done as: 20,000,000*9%*1/2 = 4,50,000 or interest Expense Debit 720,000 [(20,000,000 x 9%)/2] Premium on Bonds Payable Debit 27,050 (amortization of premium) Cash Credit 747,050
On April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bondsat a market interest rate of 8%, receiving cash of $20,811;010. Interest ispayable semiannually on April 1 and October 1. Journalize the entries to recordthe following:a. Issuance of the bonds on April 1, Year 1b. First interest payment on October 1, Year 1, and the amortization of bond premium for 2 months, using the straight-line method. how would I do part b since october 1 is 6 months away from april 1 but it says amortization of the bond premium for 2 months?
Please do not give solution in image format ?.
On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000. Present entries to record the following transaction. (a) Issuance of bonds.
Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the company's journal entries
On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000. Present entries to record the following transactions. Issuance of bonds. (a) Payment of first semiannual interest on December 31 (record separate entry from premium (b) amortization). (C) Amortization by straight-line method of bond premium on December 31.
Yale Corporation issued $36,000 , 8 % ( cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premium using the effective interest amortization method and bond issuance costs are $900. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answers to the nearest whole dollar. Date a. Jan. 1 Account Name Cash Discount and Debt Issuance Costs Bonds Payable To record bond issuance. b. June 30 Interest Expense Discount on Bonds Payable Cash To record interest payment. V V V V ✓ V Dr. 32,758 3,242 0 1,474 0 0 Cr. 0✔ 0✓ 36,000 ✓ 0x 30 x 1,440
On January 1, firm issued $500,000 of 15 year, 6 percent bonds payable for $552,325, yielding an effective rate of 5 percent. Interest is payable on June 30 and December 31 each year. The firm records amortization on each interest date.Bond interest expense for the first six months, using effective interest amortization, is: Select one: A. $15,000 B. $13,808 C. $14,059 D. $16,587 PreviousSave AnswersNext
Entries for Bonds Payable, including bond redemption The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: 20Y1 July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 20Y1, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semiannually on December 31 and June 30. Dec. 31. Paid the semiannual interest on the bonds. The bond premium amortization of $390,852 is combined with the semiannual interest payment. 20Y2 June 30. Paid the semiannual interest on the bonds. The bond premium amortization of $390,852 is combined with the semiannual interest payment. Dec. 31. Paid the semiannual interest on the bonds. The bond premium amortization of $390,852 is combined with the semiannual interest payment. 20Y3 June 30. Recorded the redemption of the bonds, which were called at 103. The balance in the bond premium account is $6,253,632 after payment…
Burris Corporation is authorized to issue $940,000 of 6% bonds. Interest on the bonds is payable semiannually; the bonds are dated January 1, Year 1, and are due December 31, Year 5. Required: Prepare the journal entries to record the following: a. April 1, Year 1 Sold the bonds at par plus accrued interest b. June 30, Year 1 First interest payment c. December 31, Year 1 Second interest payment
On January 1, firm issued $500,000 of 15 year, 6 percent bonds payable for $552,325, yielding an effective rate of 5 percent. Interest is payable on June 30 and December 31 each year. The firm records amortization on each interest date.Bond interest expense for the first six months, using effective interest amortization, is: Select one: A. $14,059 B. $16,587 C. $15,000 D. $13,808
On January 1, firm issued $500,000 of 15 year, 6 percent bonds payable for $552,325, yielding an effective rate of 5 percent. Interest is payable on June 30 and December 31 each year. The firm records amortization on each interest date.Bond interest expense for the first six months, using effective interest amortization, is: Select one: A. $13,808 B. $14,059 C. $16,587 D. $15,000 PreviousSave AnswersNext

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

1) Alberto Co. issued 8%, 10-year bonds with a PAR value of $350,000 received in cash and semi-annually interest payments (June and December till maturity date), Required: Journal entries to record: a) Issuance of bonds.