A company paid $600,000 for 1-year, 10% bonds with a par value of $600,000 on July 1. The bonds pay 5% interest semiannually on December 31 and June 30. The company intends to hold the bonds until they mature. Prepare the journal entries for the following dates and transactions related to this bond acquisition. (1) Bonds purchased on July 1. (2) Receipt of semiannual interest only on December 31. (3) Receipt of semiannual interest and redemption of the bonds at maturity on June 30.

Q: On January 1 of the current year, Barton Corporation issued 8% bonds with a face value of $91,000.…

A: When bonds are issued at a price less than the face value, then it means bonds are issued at a…

Q: Trog Industries pays and records the semiannual interest on its $520,000, 10-year, 6% bonds…

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Q: On the first day of the fiscal year, a company issues a $2,000,000, 10%, 9-year bond that pays…

A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…

Q: Chase Corporation has $7,500,000 of 5 percent, 10-year bonds dated January 1, with interest payment…

A: A bond payable's sustaining value is another word for the book value of a bond payable. Bond payable…

Q: On January 1 of the current year, Barton Corporation issued 11%, 5-year bonds with a face value of…

A: The objective of this question is to calculate the bond interest expense for the current year ended…

Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…

A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300

Q: On the first day of the fiscal year, a company issues a $2,750,000, 8%, 5-year bond that pays…

A: Bonds are the form of loan or debt that is being issued by the company and on which regular interest…

Q: 5M Corp. issued $100,000, 6%, 10 -year bonds payable on April 30 at 97. The bonds were authorized on…

A: Interest accrued = Face value of the bonds x interest rate x No. of months/ months= $100,000 x 6% x…

Q: On September 1, Year 1, Parsons Company purchased $84, 000 of 10-year, 7% government bonds at 100…

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Q: On June 30, Jameson Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: A BOND IS A DEBT SECURITY UNDER WHICH THE BOND ISSUER OWES THE BOND HOLDER A DEBT INCLUDING INTEREST…

Q: On January 1, Year 1, Parker Company issued bonds with a face value of $65,000, a stated rate of…

A: Bond is a financial instrument which is issued by the large organization to raise the funds. Bonds…

Q: The Levi Company issued $96,000 of 6% bonds on January 1 of the current year at face value. The…

A: Interest expense refers to the costs incurred in respect to the loans, bonds and other debts…

Q: On January 1, Year 1, Victor Company issued bonds with a $875,000 face value, a stated rate of…

A: Lets understand the basics. When bond is issued at less than the face value of bond then bond is…

Q: On Janua

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

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: Assume the bonds are issued for $6,940,000 on January 1 to yield an effective interest rate of 6…

A: Interest Payments  Interest payments on government debt, such as long-term bonds, long-term loans,…

Q: On January 1, the first day of the fiscal year, a company issues a $2,400,000, 4%, five-year bond…

A: Annual Interest=2,400,000×4%=96,000

Q: On the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays…

A:

Q: January 1 of the current year, Barton Corporation issued 7% bonds with a face value of $79,000. The…

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Q: Yale Corporation issued $54,000 , 8 % (cash interest payable semiannually on June 30 and December…

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Q: Franklin corporation issues $81,000, 8%, 5-year bonds on January 1, for $84,650. Interest is paid…

A: BOND IS A SECURITY UNDER WHICH THE DEBT PRINCIPAL AMOUNT IS REPAID ALONG WITH INTEREST OVER A…

Q: Recording Bond Entries and Preparing an Amortization Schedule Effective Interest Method, Premium…

A: Effective interest method The effective interest method, which is dependent on the object's…

Q: a. On January 1, Cardano Berhad issued RM1,200,000, 6%, 5-year bonds at face value. Interest is…

A: Since you have posted two different question, we will do the first one for you. To get the other…

Q: On the first day of the fiscal year, a company issues a (n) $935,000, 7%, 5-year bond that pays…

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Q: Diaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated…

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Q: On the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays…

A: Since it is a semiannual bond interest will be paid in 10 installments  ( 5 years × 2 )  The bond is…

Q: ay of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest…

A: Solution: Semiannual interest amount = $800,000*6%*6/12 = $24,000 Discount amortization = ($800,000…

Q: Franklin Corporation issues $86,000, 10%, 5-year bonds on January 1 for $89,900. Interest is paid…

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Q: On the first day of the fiscal year, a company issues an $2,750,000, 8%, five-year bond that pays…

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Q: On January 1 of the current year, Barton Corporation issued 11%, 5-year bonds with a face value of…

A: The annual payment on bonds is determined by multiplying the interest rate of bonds with the face…

Q: 500 of its 6%, $1,000 bonds on January 1 of Year 1. The bonds pay cash interest semiannually each…

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Q: On January 1, Year 1, Hackman Corporation issued $600,000 face value 6% bonds dated January 1, Year…

A: The objective of the question is to record the issuance of the bonds and the first two interest…

Q: On January 1 of Year 1, Williams Inc. issued 4-year, $50,000, 5% bonds, priced to yield 6%, with…

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Q: January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is…

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Q: the current year, Barton Corporation issued 11%, 5-year bonds with a face value of $112,000. The…

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Q: Franklin corporation issues $84,000, 8%, 5-year bonds on January 1, for $87,780. Interest is paid…

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Q: Journalize the entries to record the following: If an amount box does not require an entry, leave it…

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Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.