A company issues $16700000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are $16313983. Using effective-interest amortization, how much interest expense will be recognized in 2020?

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: A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid…

A: Discount on bonds payable:The excess of par value over the carrying value of the bonds will be…

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Q: A company issues $25100000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: Carrying Amount of Bonds = Face Value of Bonds - Unamortized Balance of Discount. Discount on Bonds…

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Q: A company issues $15100000, 9.8%, 20-year bonds to yield 10% on January 1, 2020. Interest is paid on…

A: It is the financial instrument issued by the company to raise the fund for business operations.…

Q: On December 31, 2019, Potter Corporation issued €2,000,000, 6%, 5-year bonds for €1,840,324. The…

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

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: company issues $25,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid on…

A: Carrying  value of bond = issue amount + interest  accrued  - interest  paid

Q: On January 1, 2019, Hackman Corporation issued $1,350,000 face value 8% bonds dated January 1, 2019,…

A: WORKING : PREMIUM ON BONDS PAYABLE = $1,366,900 - $1,350,000 = $16,900   JOURNAL ENTRY FOR ISSUANCE…

Q: Jordan Company issues €50,000,000, 7.8%, 20-year bonds to yield 8% on July 1, 2018. Interest is paid…

A: Bonds are the debt security which is offered or issued by the corporates or the government to…

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…

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A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to…

Q: A company issues $17200000, 9.8%, 20-year bonds to yield 10% on January 1, 2020. Interest is paid on…

A:

Q: On January 1, 2021, Jackie Company issued at 76 (gross of issuance costs of P46,260), 6% bonds which…

A: Working note: Computation of issue price of bonds, Discount, par value of bond:

Q: On January 1, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…

A: Working notes :-…

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

A:

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…

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A: Bonds are the obligations on an entity that is to be repaid at the date of its maturity. These are…

Q: Mcdonaugh Corporation issued $250,000 of 5%, 10-year bonds payable onJanuary 1, 2019. The market…

A: Bonds Payable: Bonds payable is a liability account that contains the amount owed to bondholders by…

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A: The interest income refers to the amount earned by the company on the amount lent aside from the…

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…

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

Q: Sheffield Corp. issues $6000000 face value of bonds at 96 on January 1, 2019. The bonds are dated…

A: The bonds may be issued at a discount when the interest offered by bonds is lower that the interest…

Q: McDorral Corporation issued $100,000 of 10%, 11-year bonds payable on January 1, 2020, for $92,480.…

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

Q: On January 1, 2020, Entity A issues a debt instrument for a price of P1,250,000. The principal…

A: Interest will be provided at the rate specified in the agreement .  Interest will be charged on the…

Q: On July 1, 2019, YYY Company paid P1,198,000 of 10% 20-year bonds with a face amount of P1,000,000.…

A: Solution- Calculation of Carrying value:   Interest paid = 1,000,000*10%*6/12 = 50,000   Interest…

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A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: At the beginning of 2020, Sheridan Company issued 8% bonds with a face value of $3400000. These…

A: Date (A) Interest payment (B) 4% * face value  Interest expenses(C)  5%*pervious book value in G…

Q: A company issues $ 25150000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: The net difference of a bond's face value and any unamortized premium or discount makes up the…

Q: Compute the December 31, 2020, amount of equity. Compute the debt to assets ratio at December 31,…

A: Hi student Since there are multiple questions, we will answer only first question. For first…

Q: A company issues $16700000, 9.8%, 20-year bonds to yield 10% on January 1, 2020. Interest is paid on…

A: Bond is type of a debt security which is generally issued by corporates or government to arrange…

Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…

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