30. On January 1, 2023, AAA Company issued as amortized cost P5,000,000 face value,8% bonds for P4,562,000. The bonds were issued to yield 10%. The bonds mature on January 1, 2028 and pay interest annually on December 31. AAA uses the interest method of amortization. What is the carrying amount of the bonds payable on December 31, 2024?

Q: A company issues $14900000, 5.8%, 20-year bonds to yield 6% on January 1, 2019. Interest is paid on…

A: Bonds are a form of loan or debt that is taken by the business. When bonds are being sold at a value…

Q: LRNA Company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. This price…

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

Q: Ellis Company issues 6.5% , five-year bonds dated January 1, 2019, with a $570,000 par value. The…

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

Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…

A: Cash(600000*102/100) Dr $612000 Bond payable  Cr                      $600000 Premium on issue   Cr.…

Q: PA5. 13.3 Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year…

A: Under the Straight-Line Amortization Method, the premium or discount on bond is amortized equally…

Q: a. Jason Allen Co. sold $2,080,000 of 12%, 10-year bonds at 102 on January 1, 2025. The bonds were…

A: Bonds refer to the debt instruments issued either by the government or corporations. The bonds are…

Q: On January 1, 2024, Reyes Recreational Products issued $150,000, 9%, four-year bonds. Interest is…

A: The objective of the question is to prepare an amortization schedule using the effective interest…

Q: $25050000, 7.8%, 20-year bonds to yield 8% on January 1, 2024. Interest is paid on June 30 and…

A: The cost of borrowing money or utilizing credit, represented as interest costs, is the compensation…

Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…

A: PREPARATION OF BOND DISCOUNT SCHEDULE

Q: On January 1, 2021, a company issues 3-year bonds with a face value of $50,000 and a stated interest…

A: Interest expense = Issue price of bond × Market interest rate Cash paid = face value×stated interest…

Q: On July 1, 2018, McNamara Company issued for $598,964, 10%, 20-year bonds with a face value of…

A: When bonds are issued at premium the premium on bonds payable is amortized over the life of the…

Q: Stellar Co. sold $1,950,000 of 12%, 10-year bonds at 106 on January 1, 2020. The bonds were dated…

A: When bonds are issued at a price more than face value, then it means they are issued at a premium.…

Q: Presented below is a partial amortization table: Semi Annual Interest Period Jan 1, 2026 July 1,…

A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…

Q: Sheridan Company issued $279,000, 9%, 15-year bonds on December 31, 2021, for $267,840. Interest is…

A: In the given question we need to prepare the journal entries for following: (a)The issuance of the…

Q: On January 1, 2024, Reyes Recreational Products issued $125,000, 10%, four-year bonds. Interest is…

A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…

Q: On January 1, 2022, Sheridan Company issued $2,060,000 face value, 8%, 10-year bonds at $1,927,796.…

A: Bond interest = carrying value × effective rate Interest expense = 1,927,796 × 9% = 173501.64…

Q: ld Corp. uses the amortized cost method (effective interest method) when accounting for debt…

A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…

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: 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: Prepare journal entries for the following transactions.

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

Q: A company issues $16700000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: Date (A) Interest payment (B) 2.9% * face value  interest expenses (C) 3% *previous book value…

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: The present value (PV) of bond the sum of the present value of interest and the PV of the maturity…

Q: On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2,157,700. The bonds will…

A: Interest payment = $2,460,000*8% Interest payment = $196,800

Q: A company issues $14600000, 9.8%, 20-year bonds to yield 10% on January 1, 2020. Interest is paid on…

A: The carrying value of the bond using effective interest will be proceeds from the issue with…

Q: Sheridan Corporation issued $460,000, 9%, 20-year bonds on January 1, 2020, for $420,837. This price…

A: Journal Entry: It is a systematic record of a financial transaction recorded in chronological order.

Q: On January 1, 2025, Paxton Planning Services issued $56,000 of 2% bonds that mature in five years.…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: On June 30, 2025, Daniel Jackson Company issued $3,990,000.00 face value of 14%, 20-year bonds at…

A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value amount…

Q: Sheridan Industries, Inc. issued $17,400,000 of 8% debertures on May 1, 2024 and received cash…

A: The objective of the question is to calculate the total dollar amount of discount or premium…

Q: On January 1, 2020, Ironman Steel issued $1,300,000, 8-year bonds for $1,340,000. The stated rate of…

A: Prepare the amortization table for Ironman Steel\'s bonds:

Q: Crane Company issued $310,000,6%,10-year bonds on January 1, 2022, for $333,936. This price resulted…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

A: Bonds: Bond is a debt security.The amount of interest is paid on bond.  Bond amortization:…

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: 1.

Q: On January 1, 2020, ABC co. issued 3-year bonds with a face value of P1,200,000 and stated interest…

A: The provided information are: Face value = P1,200,000 Rate of interest (r) = 8% = 0.08 Yield = 10% =…

Q: On July 1, 2020, Center Company issued for $598,964, 10%, 20-year bonds with a face value of…

A: Bonds payable are issued to collect long-term funds for the business entity. Bonds carry a fixed…

Q: On January​ 1, 2018​, Technicians Credit Union, ​(TCU​), issued 8%​, 20​-year bonds payable with a…

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

Q: Ayayai Company issues $ 17300000, 9.80%, 20-year bonds to yield 10% on January 1,2025. Interest is…

A:

Q: A company issues $16700000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: On January 1, 2022 Company K issued $1,000,000, 5% bonds for $855,000. The market rate of interest…

A: One of the source used by the business organizations to meet their financial requirements is issue…

Q: A company issues $25200000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid on…

A: Interest expense refers to the expenditure borne by an entity due to borrowed funds. It represents a…

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, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…

Q: 57 On January 1, 2024, Reyes Recreational Products issued $100,000, 11%, four-year bonds. Interest…

A: A bond is a security of our debts we have to issue a bond when we are lending some money for a…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

A: Bond is a borrowing security issued by the company to raise funds from the market by making an…

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…

Q: A company issues $17000000, 9.8%, 20-year bonds to yield 10% on January 1, 2024. Interest is paid on…

A: A bond's premium or discount gets amortized over its life and it moves closer to maturity. The…

Q: Hasley Company issued $800,000, 11%, 10-year bonds on December 31, 2018, for $730,000. Interest is…

A: Journal entry to record the issuance of the bonds: Date Account Titles Debit ($) Credit ($)…