ABC Company issued $20,000 of 5-year bonds, stated rate 10%, effective rate 8%, interest paid semi-annually at 108 on 1/1/00. match the correct set of journal entries for v The first interest payment The issuance of the bonds 1. 2. 3. 4. Cash Cash Premium Bond Payable Premium Bond Payable Interest exp Premium Cash Interest exp Premium 20,800 21,600 832 160 Cash 800 20,000 1,600 20,000 1,000 864 136 1,000

Q: Issuing Bonds at a Premium

A: Bonds issued at premium means bonds issued at a price higher than par value.

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

A: Given:

Q: Entries for issuing and calling bonds; lossAdele Corp., a wholesaler of music equipment, issued…

A: Solution:- Preparation of journal entries as follows under:-

Q: 2. EX.11.150 Luke Corp. issued $2,000,000 of 20-year, 9% callable bonds on July 1, Year 1, with…

A: Bonds Payable: A bond is a debt instrument, and so it requires its issuing company to pay periodic…

Q: Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. Description Debit…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: i. Prepare the entry on March 1 when the note was issued. ii. Prepare any adjusting entries…

A: NOTE PAYABLE :— it is a Long Term liability which is owned by the Assese for a Specified period of…

Q: ABC Company issued $100,000 in bonds for $98,000. The bonds had a stated rate of 12% and pay…

A: The objective of the question is to determine the correct journal entry to record the first interest…

Q: Green Co. issued $400,000 of 12%, 10 year bonds on January 1 at 98. Interest is payable semiannually…

A: The bonds-are issued at discount of Rs. 2 per bond. Therefore, total cash received on issue date =…

Q: 12. On 1/1/21, AB Company sold $100,000, 10%, 10 year bonds at 96. Complete the entries for the bond…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: Lewis Corporation issued $520,000 of 7%, 10-year bonds payable at a price of 93. The market interest…

A: The journal entry (b) correctly records the first semiannual interest payment using the effective…

Q: On March 1, Sullivan Inc. issued $700,000 of 10-year, 11% bonds at an effective interest rate of…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On December 31, a $1,000,000 bond issue on which there is an unamortized discount of $71,600 is…

A: Journal entry is the primary step to record the transaction in the books of accounts. The debit and…

Q: Ramona Arroyo Co. issued the following bonds:     Date of issue and sale: April 1, 20-1…

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

Q: Make a journal entry to record the issuance of a bond with a face amount of $1,000,000 sold at 98.

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $269,100. The entry to…

A: Solution:- Introduction:- The following data given as follows:- Bond = $276,000 redeemed at = 98…

Q: Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the…

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

Q: Sept. 30 Paid the annual payment on the note. which consisted of interest of $30,800 and principal…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  Date  Account Title  Debit  Credit…

Q: Prepare the entry to record the issuance of the bond and the first payment.

A: Amount of Interest = (Number of bonds issued × Par value × Interest rate)/2 = (1000 × $100 × 5%)/2 =…

Q: Mucho Dineros, Inc. purchased 100, $1,000, 9%, 10-year bonds on December 1, Year 1 for $100,000. The…

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

Q: am. 105.

A: The first step in journalizing the entry is to understand the transaction. Smiley Corporation issued…

Q: ssuing Bonds at a Discount 1. On the first day of the fiscal year, a company issues a $8,200,000,…

A: A bond issued on discount:-When a company issue a bond less than its par value is known as a bond…

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

A: Bonds allow an organization to raise capital and meet capital requirements. Corporations and…

Q: On January 1, Cullumber Service Inc. issued $5304000, 9% bonds for $4975000. The market rate of…

A: The bonds are issued to raise the money from the market or investors. The bonds are issued at…

Q: 1. Camden Co. issued $200,000 of 10%, 2 year bonds on January 1, 2018. The bonds pay interest on…

A: Solution A: Computation of bond price Table values are based on: n= 4     i= 6.00%…

Q: On June 30th dogwood limited issues 8%, 20 year bonds payable with a face value of $100,000. The…

A: Here,it is assumed that face value per bond is $ 100. Therefore number of bonds issue=$100,000/$100…

Q: Question: Delta Company issued $1,000,000, 4%, 10-year, bonds. Interest to be paid semiannually. The…

A: Bond valuation is a method that is used to determine the theoretical value that should be assigned…

Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…

A: Journal entries refers to the recording of the business activities into the books of accounts or…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,700,000, 6%,…

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

Q: On January 1, the first day of the fiscal year, a company issues a $250,000, 10%, 10-year bond that…

A: SOLUTION- BOND-  A Bond is a fixed income instrument  that represent a loan  made by the investor to…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a.$4,200,000, 10%,…

A: Bonds are issued by the companies to get the financial resources for working. It is a cheaper source…

Q: Wildhorse Co. sold $3,310,000, 9%, 10-year bonds on January 1, 2025. The bonds were dated January 1,…

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

Q: 15. ABC Company Issues $100,000 of 30 year 5% bonds at 102. What entry is used to record this…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Sheridan Company issued $6,500,000 of 6%, 10-year bonds for $5,614,000. The straight- line method of…

A: Bonds are the obligation for an entity. These are issued for raising funds from the market. These…

Q: On the first day of the fiscal year, a company issues a $4,500,000, 10%, 9-year bond that pays…

A: Here in this question, we are required make entry for bond issued at discount. Bond is knowing to be…

Q: Keaubie Co. issued $400,000, 6.75% 15-year bonds payable at a price of 100 (face value), on Jan.…

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

Q: Smith Corporation issues $1,800,000, 10-year, 9% bonds payable at a price of 98. The journal entry…

A: The bonds payable are reported as the long-term liabilities. The bonds are issued to raise the money…

Q: What account would be debited (1), what account would be credit (2), and what amount would be paid…

A: Interest payment = Face value of bonds x bonds interest rate x 6/12 = $100,000 x 12% x 6/12 = $6,000…

Q: None

A: Step 1: Define Loan paymentsWhen the payments are paid monthly, the annual interest rate is divided…

Q: Account balances and information relating to bonds payable during the year: B/P Premium on B/P…

A: Journal Entries for Bonds Payable Transactions:1. Bond Issuance for Land: Debit: Land ($20,000 x…

Q: Five thousand bonds with a face value of $1000 each, are sold at 105. The entry to record the…

A: The par value of Bonds is $1000. But the bonds are issued at a 5% premium. Therefore, Par value of…