25. Bonds Issued at a Discount (Effective Interest) Crafty Corporation issued $475,000 of 5%, seven-year bonds on December 31, 2022, for $448,484. Interest is paid annually on December 31. The market rate of interest is 6%. Required: Prepare the journal entries for December 31, 2023 and 2024. For those boxes in which no entry is required, leave the box blank. If required, round your answers to the nearest whole dollar.

Q: Bramble Corp. issued 3,400 8%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest…

A: Given:

Q: Req 1 Req 2A to 2C Req 3 End 01/01/2021 06/30/2021 12/31/2021 06/30/2022 Semiannual Period-…

A: A journal entry is the process of recording or maintaining track of any financial or non-financial…

Q: On the first day of the fiscal year, a company issues a $968,000, 8%, 10-year bond that pays…

A: Working Note: Total premium on Bonds = Issue value - Face value of the bonds = $1,016,400 - 968,000…

Q: On the first day of the fiscal year, a company issues a $415,000, 7%, 10-year bond that pays…

A: Premium on Bond Payable = $435,800 - $415,000 = $20,800   Interest is paid semiannually for 10…

Q: On the first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays…

A: Journal entries refer to recording/ classifying the business transactions into books of accounts…

Q: On the first day of the fiscal year, a company issues a $2,800,000, 8%, 8-year bond that pays…

A: The bonds are the financial instruments used to raise the money from the investors.

Q: Required information [The following information applies to the questions displayed below.] Legacy…

A: The bonds are issued at par, premium or discount on the basis of market rate of bonds payable. If…

Q: On the first day of the fiscal year, a company issues a $326,000, 6%, 10-year bond that pays…

A: BOND IS AN INSTRUMENT OF INDEBTEDNESS OF THE BOND ISSUER TO THE HOLDER .

Q: On the first day of the fiscal year, a company issues a $940,000, 10%, 5-year bond that pays…

A: Introduction:- When the face value of bond is higher than issue price of bonds then that represents…

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 the first day of the fiscal year, a company issues a $874,000, 9%, 10-year bond that pays…

A: A record is often kept in the general ledger, but it can also be kept in a single account,…

Q: On the first day of the fiscal year, a company issues a $616,000, 8%, 10-year bond that pays…

A: Cash interest = $24,640 Face value = $616,000Issue Price = $646,800Premium on issue of bond =…

Q: On the first day of the fiscal year, a company issues an $302,000, 8%, 5-year bond that pays…

A: Under the straight line method of amortization, premium or discount of bond need to amortize equally…

Q: the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiannual…

A: Bond payable is financial instrument which is used to raise funds for financial obligations. These…

Q: On the first day of the fiscal year, a company issues a $920,000, 7%, five-year bond that pays…

A: When the bonds will issue we receive cash , and we have to pay interest through out its duration…

Q: The first day of the fiscal year, a company issues a $700,000, 6%, 10-year bond that pays semiannual…

A: Bonds are issued by the company because it is it cheaper source of finance. It is because tax…

Q: Select all that apply A company issues $100,000 of 6%, 10-year bonds dated January 1, that pay…

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

Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…

A: The question is based on the concept of the issue of securities. As per Bartleby guidelines we are…

Q: On the first day of the fiscal year, a company issues a $5,100,000, 9%, 4-year bond that pays…

A: Bonds issued at discount: A bond said to be issued at discount when its issue price is less than…

Q: On January 1, the first day of the fiscal year, Designer Fabric Co. issues a $400,000, 5%, 10-year…

A: Bond is financial instruments used to raise funds to meet financial obligations of business.Bond can…

Q: On the first day of the fiscal year, a company issues a $990,000, 7%, 5-year bond that pays…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: On the first day of the fiscal year, a company issues a $3,300,000, 12%, 6-year bond that pays…

A: The bonds payable are the financial instruments that are used to raise money from the market or…

Q: Pretzelmania, Incorporated, issues 7%, 15-year bonds with a face amount of $54,000 for $59,245 on…

A: The bonds are the financial instruments for the business that are used to raise money from the…

Q: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…

A: Face value of bond = $ 1,900,000                             Issue price of bond = $ 1,641,812…

Q: X Corporation borrowed money by issuing $1,000,000 of bonds at 102 on January 1, 2022. The bonds pay…

A: DateAccountDebitCreditJanuary 1, 2022Cash ($1,000,000 * 102%)$ 1,020,000            Bonds Payable $…

Q: On the first day of the fiscal year, a company issues a $784,000, 6%, 10-year bond that pays…

A: A Issue price  $823,800 B Face value  $784,000 C=A-B Premium on bonds payable  $39,800 D No.…

Q: On the first day of the fiscal year, a company issues a $8,400,000, 12%, 8-year bond that pays…

A: Premium on bonds Payable = Issue price - Face value of bonds = $8,839,411 - $8,400,000 = $439,411

Q: On the first day of the fiscal year, a company issues a $1,000,000, 10%, 5-year bond that pays…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: On the first day of the fiscal year, a company issues a $883,000, 10%, 10-year bond that pays…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.

Q: On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays…

A: Discount on bonds issue = Face value of bonds - issue price =  $4,900,000 - $4,440,130 = $459,870

Q: 00 ($5,000,000 × 6% × ½ year), receiving cash of $5,000,000. a. Journalize the entry to record the…

A: Answer : Prepare journal entries :

Q: Salt Foods purchases thirty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $27,868 on…

A: Interest revenue = Carrying value of Investment x market rate of interest x no. of months /12 =…

Q: QUESTION 4 On July 1, 2022, Sharon Equipment Dealer issued $5,000,000 of 8% bonds payable that…

A: Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…

Q: Omar Company issued a $140,000, 11%, 10-year bond payable at 97 on January 1, 2024 Interest is paid…

A: If the issued Price is less than the face value, it will be treated as that Bonds are issued at…

Q: On August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is…

A: As per accrual principle of accounting, all the expenses need to be accounted for within the…

Q: On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays…

A: Working note:   Premium on issue $1,004,900 – 957,000 $47,900 Semi-annual period 10×2…

Q: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…

A: Accounts title Debit Credit Interest Expense $55,775   Premium on Bonds Payable $2,425…

Q: Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2019, that pay interest…

A: Solution (4) : Date Particulars Debit Credit 30 June , 2019 Interest expense 19,598.50…

Q: On the first day of the fiscal year, a company issues a $896,000, 7%, 10-year bond that pays…

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

Q: min.9

A: The objective of the question is to prepare the journal entries for the issuance of bonds, the…

Q: On the first day of the fiscal year, a company issues a $900,000, 9%, 5-year bond that pays…

A: Given, Face value = $900,000 Issue price = $884,176

Q: On the first day of the fiscal year, a company issues a $8,300,000, 6%, 8-year bond that pays…

A: Cash interest  = $8,300,000 x 6% x 1/2 = $249,000