ABC Corporation is authorized to issue $500,000 of 6 percent, 10-year bonds dated July 1, 2003, with interest payments on December 31 and June 30. When the bonds are issued on November 1, 2003, ABC Corporation receives cash of $515,000, including accrued interest. The journal entry to record the issuance of the bonds would include a. $15,000 bond premium. b. $5,000 bond premium. c. $15,000 bond discount. d. no bond premium or discount.      17.  The sum-of-the-years'-digits method of depreciation is being used for a machine with a five-year estimated useful life. What would be the fraction applied to the cost to be depreciated in the fourth year? a. 4/5 b. 2/5 c. 4/15 d. 2/15

Q: On January 1, 2020, ABC Company issued 5,000 of its 12%, P1,000 face value bonds for P5,350,000…

A: Accrued Interest on Bond: Accrued interest is the amount of interest earned on a debt(Bond) which is…

Q: Metro Inc. issued $200,000 of 10% bonds dated May 1, 2021 for $239,588. The bonds mature in 20…

A: Bond is financial investment securities where investors lend money to a person. Interest and…

Q: On January 1, $932,000, 5-year, 10% bonds, were issued for $904,040. Interest is paid semiannually…

A: Solution: Discount on issue of bond = $932,000 - $904,040 = $27,960 Nos of semiannual periods = 5*2…

Q: On January 1, $925,000, 5-year, 10% bonds, were issued for $897,250. Interest is paid semiannually…

A:

Q: Al-Teeb Company issued OR 40,000, 3.5%, 15-year bond payable at 104 on January 1, 2018 Required:…

A: Issue value of Bonds = Face value of bonds x issue price = 40,000 x 104/100 = 41,600

Q: Aye Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2021 with interest…

A: Formula: Interest amount = Bond authorized value x Interest rate x Time period.

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: 4. On January 1, 2018, LJ Company issued 9% bonds in face amount of P8,000,000, which mature on…

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

Q: 2. Swisher Company issued $2,000,000 of bonds on January 1, 2020. Instructions a. Prepare the…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: On April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P4,800,000. The bonds…

A: As per PFRS 9 Financial instruments ,Issue of bond will be considered as Financial instruments as it…

Q: On September 1, 20x1, an entity issues bonds with face amount of P8,000,000 for P9,105,022,…

A: A bond is a fixed-income security that represents a borrower's loan from a lender (typically…

Q: If the company issued RO 100,000 , 5% interest, 10-year bonds at 98 on January 1, 2021, which of the…

A: Answer Bond issued = RO98 Face value per BOND = RO100 Discount price per BOND = (RO100 - RO98) = RO2…

Q: A Co. is authorized to issue P5,000,000 of 6%, 10 year bonds dated July 1, 2021 with interest…

A: The premium on bonds payable refers to the amount received from the bondholders over the face value…

Q: On April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including…

A: A per PFRS 9 Financial instruments an issue of bond is a financial liability which can be accounted…

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

A: Bonds Payable is a written document issued by the borrower. This document acts as a promissory note…

Q: On March 1, Year 1, 5M Corp. issued $50,000, 6%, 10-year bonds payable at 98 plus accrued interest.…

A: Interest for February , Year 1 = Face value of bonds x rate of interest x no. of months / 12 months…

Q: 2. On June 30, 2018 the market rate of interest Is 9%. Ramsey Cor issues$550,000 of 12%, 20 year…

A: Bonds can be issued at par, at premium or at discount. The interest payment on bonds is made…

Q: Grocery Corporation received $301,001 for 13.50 percent bonds issued on January 1, 2021, at a market…

A: Introduction If stated interest rate on bonds is higher than the market rate of interest then such…

Q: On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

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

A: Proceed from issuance of bonds $87,780Less: Face value of bonds $84,000Premium on bonds payable…

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

A: The bonds are issued to raise money from the investors or market for financial requirements of…

Q: On January 1, Year 1, Pierce Corporation issued $25,000 in 8%, 5-year bonds payable at 102. Interest…

A: Bonds are the securities which are issued by the entity in order to raise funds. It is an obligation…

Q: Farhan Corporation issued $ 1,000,000 of 8%, 28-year bond on January 1, 2020, at 84.95 to yield 8%.…

A: Answer and calculations are given are given below

Q: On January 1, 2018, Kimber Company issued 9% bonds in face amount of P8,000,000, which mature on…

A: Annual interest payment = face value of bonds x rate of interest x no. Of months/12 = P8000000 x 9%…

Q: On January​ 1, 2024​,Technicians Credit Union ​(TCU​) issued 7%​, 20​-year bonds payable with face…

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

Q: On September 31, 2021, an entity issues bonds with face amount of P8,000,000 for P9,105, 022…

A: Cash proceeds P9,105,022 Accrued Interest (P8,000,000 *9 /12 * 9%) (P540,000) Face Value of…

Q: Grocery Corporation received $322, 294 for 9.00 percent bonds issued on January 1, 2021, at a market…

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

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.