As a long-term investment, Camex Inc. paid $800,000 (par value) for Simple Bank bonds. The bonds pay 5.5% interest semiannually on September 1 and March 1. Prepare the journal entries for the following transactions. Round all values to the nearest dollar. Purchase on September 1, 2020. Year-end adjusting entry, December 31, 2020. Receipt of semiannual interest payment March 1, 2021. Redemption of the bonds at maturity.

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,400 million on…

A: The journal entries are prepared to keep the record of day to day transactions of the business. The…

Q: Amwaj Company issued 129, 10-year bonds with a par value of BD 2,000,000 on January 1, 2018.…

A: Journal Entries are primary record maintained by an entity for the occurrence or non-occurrence of…

Q: Super Splash issues $870,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…

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A: The retirement of a bond is the repayment of bond at maturity. The principal is repaid and the…

Q: On February 1, 2021, Kailua Corp. issued $800,000, 20 year, 9% bonds, with interest payable…

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Q: Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $3,400,000 par value,…

A: When the bonds are issued at par, then there shall be no premium or discount on bonds payable.

Q: On January 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…

A: Solution: Premium on issue of bond is computed as bond issue price less face value of bonds…

Q: On January 1, 2019, Black Panther, Inc. issued P4,000,000 of 9% bonds, dated January 1 at 97.…

A: Determine Carrying amount of bonds payable Face value of bonds P4,000,000 Issued at 97% issued…

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A: PREPARATION OF BOND DISCOUNT SCHEDULE

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Q: On January 1, 2020, Skysong Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were…

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Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…

A: Disclaimer: "Since you have asked multiple questions, we will solve the first three questions for…

Q: On January 1, 2021, a company issued $2,000,000, 10-year, 7% bonds, when the market rate was 8%.…

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Q: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…

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Q: Prepare journal entries for the following transactions.

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A: Step 1: Introduction to Bonds Payable:Like other liability accounts, the bonds payable account has a…

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A: The question is based on the concept of the issue of securities. As per Bartleby guidelines we are…

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A: Bonds are the securities issued by the entity for the purpose of raising funds from the market.…

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Q: Quatro issues bonds dated January 1, 2021, with a par value of $900,000. The bonds' annual contract…

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Q: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…

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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…

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A: Req-1       Date  Account Titles & Explanation   Debit   Credit  June 30, 2018  Cash…

Q: National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January…

A: 1.

Q: Ellis Company issues 8.5 %, five-year bonds dated January 1, 2021, with a $540,000 par value. The…

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