12. On January 1, 2017, Milky-way Company issues $2million, 10 year, 7% bonds at 98, with interest payable every June 30, and December 31. The straight line method is used to amortize any applicable bond premium or discount. Required: A. Prepare the journal entry to record the sale of the bonds on January 1, 2017. B. Prepare the journal entry to record interest expense and bond discount amortization during 2017, assuming no previous accrual of interest.

Q: 1. 2. 3. On January 1, 2022, 1,500, 9%, 5-year, $1,000 bonds dated January 1, 2022, were issued at…

A: Lets undertand the basics. Bonds can be issued at either, (1) Par value  (2) At premium (3) At…

Q: 2. On January 1, 2015, Schultz Corporation issued $100,000 of its ten-year, 6% bonds payable at…

A: Bond is a debt security which is issued to raise funds by large organization. Bonds can be issued at…

Q: Problem 1: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129.…

A: Here asked for multi question we will solve for first question as per guidelines.  If you need…

Q: In order to fulfill its financing activities, Astro Co. issued Rp 505.000,000, 12%, 10-year bonds…

A: Bond Discount Amortization: If bond’s coupon rate is less than  rate of return expected in the…

Q: On January 1, 2014, Blossom World issued bonds with a face value of $160,000. The bonds carry a…

A: The journal entries are very important because this is the first step where a business transaction…

Q: On January 1, 2016, Crammer Inc. issues five-year bonds with a total face amount of $1,000,000 and a…

A: Bonds payable is a form of liability being incurred by the business, on which regular interest…

Q: Devin Company computes the following bond interest amortization table for bonds issued on January 1,…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: PA6. 13.3 Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term…

A: Bonds are the highly secured debt securities which are redeemed after a certain span of time.

Q: Massy Company issued $4,000,000 of 10-year, 11% bonds on January 4, 2021. The bonds pay interest…

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…

Q: 4.  On July1, 2018, Dixon Inc. issued bonds with a $500,000 face value at 96.0 and the 5-year bonds…

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: Price Company issued a $700,000, 8%, 10-year bond payable at face value on January 1, 2018 Interest…

A: A bond refers to fixed income instrument that represents a loan made by an investor to a borrower…

Q: On January 1, 2019 Sandhill Corporation issued $550,000, 7%, 5-year bonds at face value. Interest is…

A: Introduction: Journal entries serve as the primary building blocks for answering these and other…

Q: Blossom Company issues $3.2 million, 10-year, 9% bonds at 96, with interest payable on December 31.…

A: 1. Date Account Titles and Explanation Debit Credit Jan. 1 Cash ($3,200,000*96/100)…

Q: On January 1, 2021, a company issued $2,000,000, 10-year, 7% bonds, when the market rate was 8%.…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: Blossom Company issues $2.1 million, 10-year, 5% bonds at 96, with interest payable on December 31.…

A:

Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: What is the bonds' ANNUAL market rate of interest? % How much total CASH will the company pay for…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: Al-Teeb Company issued OR 40,000, 3.5%, 15-year bond payable at 104 on January 1, 2018 Required:…

A: Issue value of Bonds = Face value of bonds x issue price = 40,000 x 104/100 = 41,600

Q: Volunteer Inc. issued bonds with a $700,000 face value, 10% interest rate, and a 4-year term on July…

A: Annual interest payment = Face value of bonds x rate of interest x Year = $700,000 x 10% = $70,000

Q: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…

A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200

Q: On January 1, 2023, Culver Corp. purchased at par 12% bonds with a maturity value of $309,000. They…

A: Answer:- Journal entry:- A journal entry is basically the act of recording all the transactions…

Q: Sheridan Company issued $501,000, 8%, 30-year bonds on January 1, 2025, at 102. Interest is payable…

A: No. of issued bonds = $501,000 Interest rate = 8% Term to maturity = 30 years Percentage per bond =…

Q: On January 1, 2018, Technicians Credit Union (TCU) issued 5%, 20-year bonds payable with face value…

A: Premium on Bonds Payable = Face value of Bonds - Issue price = $100000 - $100000*106% = $6000

Q: 3. Terry Company is authorized to issue P5,000,000 of 6%, 10- year bonds dated July 1, 2011 with…

A: Face value of bond: P5,000,000 Cash received by the company: P5,150,000 Interest rate: 6% Discount…

Q: Assume that on July 1, 2027, Swifty Co. redeems half of the bonds at a cost of $1,126,600 plus…

A: Please find the required journal entries on July 01, 2027 in step 2 below.

Q: Gridley Company issued $988,000, 12%, 10-year bonds on December 31, 2014, for $928,720. Interest is…

A: Discount on bonds payable = Face value of bonds issued - selling price ofBonds  = $988,000 -…

Q: On January 1, 2022, Sunland Company issued $420,000, 12%, 10-year bonds at face value. Interest is…

A: The bonds are the financial instruments that are issued to raise money from the market or investors.…

Q: som Company issues $390,000, 20-year, 8% bonds at 101. Prepare the journal entry to record the sale…

A: Bonds are debt instruments that carry the payment for interest annually and payment of face value on…

Q: On May 1, 2022, Sandhill Corp. issued $600,000, 6%, 5-year bonds at face value. The bonds were dated…

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

Q: 9. Powell Corporation issued a $525,000, 6%, 10-year bond payable on January 1, 2025. Journalize the…

A: Step 1: Let's first understand the definition of bonds:They are a type of long-term instrument which…

Q: On January 31, 2021, Dogwood Logistics, Inc, issued ten-year, 12% bonds payable with a face value of…

A: Lets understand the basics.Bonds can be issued at,(1) Par value(2) Premium(3) Discount Amortization…

Q: Alexander Company issued $160,000, 12%, 10-year bonds payable at 96 on January 1, 2018.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Requirement. Journalize the transactions of Lamire Communications Inc. (Record debits first, then…

A: An entity's interest expenditure is the cost of borrowing money. On the income statement, interest…

Q: 1. Compute the amount of cash Rahman Co. received on 1/1/2016. Prepare an amortization table for…

A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…

Q: Kingbind, Inc. issues $4.1 million, 10-year. 9% bonds at 102, with interest payable on January 1.…

A: Solution: Journal entries : The straight line method :

Q: On January​ 1, 2018​,  Lane Unlimited issues 15​%, 10​-year bonds payable with a face value of…

A: 1) Premium on bonds payable = 1800 bonds * $5 = $9,000 It has to be amortised over the life of bonds…

Q: Monica Corporation has $4,000,000 of 8 percent, 25-year bonds dated May 1, 2016, with interest…

A: 1) Journal entry Date account and explanation Debit credit May 1,2011 Cash (4000000*103.5/100)…

Q: On January 1, 2019, Booth Sales issues $10,000 in bonds for $10,900. These are 5-year bonds with a…

A: Semiannual interest payment = Face value of bonds * Annual stated rate * 6/12 Semiannual premium…

Q: Sheffield Company issued $400,000, 12%, 10-year bonds on January 1, 2022, for $423,557. This price…

A: Lets understand the basics.There are two methods through which amortization of bond premium or…

Q: On January 1, 2016, Mary Co. issued its 10% bonds in the face amount of P 1,500,000 which mature on…

A: A bond is a fixed-income investment vehicle that represents an investor's obligation to a borrower…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.