031%77F Sunnyhp2). On January 1, a company issued 10-year, 10% bonds payable with a par value of $500,000, andreceived $442,647 in cash proceeds. The market rate of interest at the date of issuance was 12%.The bonds pay interest semiannually on July 1 and January 1. The issuer uses the straight-linemethod for amortization. Prepare the issuer's journal entry to record the first semiannual interestpayment on July 1.Record the journal entry for the bond issuance And the first semiannual interest payment on JulyIssuanceJanuary 1Semiannual Interest PaymentJuly 1

Here in this question, we are required to make entry for issuance of bond at discount and first…

Answered: 2). On January 1, a company issued…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On January 1, a company issues bonds dated January 1 with a par value of $560,000. The bonds mature in 5 years. The contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The market rate is 9% and the bonds are sold for $537,828. The journal entry to record the second interest payment using the effective interest method of amortization is:
On January 1, Year 1, Maverick Company sold bonds that pay interest semiannually on June 30 and December 31. Maverick has a fiscal year - end of February 28. The amortization schedule for these bonds shows a cash payment of interest of $7, 200 and effective interest of $9, 009 relating to the interest payment that will be made on June 30, Year 1. What is the amount of interest expense that should be accrued by Maverick in an adjusting entry dated February 28, Year 1?
On the first day of the fiscal year, a company issues a $8,300,000, 10%, 8-year bond that pays semiannual interest of $415,000 ($8,300,000 × 10% × ½), receiving cash of $9,267,140. 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. blank - Select - - Select - - Select - - Select - - Select - - Select -
On January 1, Year 1, Victor Company issued bonds with a $750,000 face value, a stated rate of interest of 5%, and a 5-year term to maturity. The bonds sold at 96. Interest is payable in cash on December 31 of each year. Victor uses the straight-line method to amortize bond discounts and premiums. What is the amount of interest expense appearing on the income statement for the year ending December 31, Year 3? Multiple Choice O OOO $36,000 $43,500 $30,000 $37,500
Lewis Corporation issued $520,000 of 7%, 10-year bonds payable at a price of 93. The market interest rate at the date of issuance was 8%, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective-interest amortization method is OA OB. O C. Date Date Date Accounts and Explanation Interest Expense Discount on Bonds Payable Cash Accounts and Explanation Interest Expense Discount on Bonds Payable Cash Cach Accounts and Explanation Interest Expense Discount on Bonds Payable Debit 21,944 Debit 23,348 Debit 20,748 Credit 1,144 20,800 Credit 2,548 20,800 Credit 2,548 18 200 4 Next
On January 1, $980,000, 5-year, 10% bonds were issued for $950,600. Interest is paid semiannually on January 1 and July 1. If the issuing company uses the straight-line method to amortize a discount on bonds payable, the semiannual amortization amount is
During two consecutive years, Antlers Company, Inc., completed the following transactions: Year 1 June 1 Issued $750,000 face value, 20-year, 12 percent bonds, dated June 1 of this year, at 103. Interest is payable semiannually on December 1 and June 1. Dec. 1 Paid semiannual interest on the bonds. 31 Recorded an adjusting entry for accrued interest payable. 31 Recorded an adjusting entry for amortization of premium on bonds. 31 Closed the Interest Expense account. Year 2 Jan. 1 Reversed the adjusting entry for accrued interest payable. June 1 Paid semiannual interest on the bonds. Dec. 1 Paid semiannual interest on the bonds. June 31 Recorded an adjusting entry for accrued interest payable. 31 Recorded an adjusting entry for amortization of premium on bonds. 31 Closed the Interest Expense account. Can I get some help for the second year?
On January 1, a company issued and sold a $390,000, 4%, 10-year bond payable, and received proceeds of $381,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is:
On January 1, 20x8, James Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds pay semiannual interest on January 1 and July 1. The company uses the straight-line method of amortization and has a calendar year end. The journal entry on December 31, 20x8, would include which of the following? Select one: a. Credit to Bonds Interest Payable for $26,000 b. Credit to Bonds Interest Payable for $25,000 c. Debit to Discount on Bonds Payable for $25,000 d. Credit to Discount on Bonds Payable for $25,000
On the first day of the fiscal year, a company issues a $621,000, 11%, 10-year bond that pays semiannual interest of $34,155 ($621,000 × 11% × 1/2), receiving cash of $652,050. Required: Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds…
On February 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds for $1,225,000. Interest is payable semiannually on February 1 and August 1. Present the entries to record the following transactions:
On January 1, Year 1, Jones Company issued bonds with a $200,000 face value, a stated rate of interest of 7.5%, and a 5-year term to maturity. The bonds were issued at 97. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method. What is the amount of interest expense shown on Jones' income statement for the year ending December 31, Year 1? Multiple Choice O O O о $15,000 $16,200 $13,800 $21,000

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