Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the company's journal entries
Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 each for $104,000. The…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On January 1, Year 1, Pierce Corporation issued $25,000 in 8%, 5-year bonds payable at 102. Interest…
A: Assets, liabilities and stockholders equity are recorded in the Balance Sheet. Income and expenses…
Q: A $294,000 bond was redeemed at 104 when the carrying value of the bond was $349,000. The entry to…
A: Par value of the bond = $294,000 Redemption value = $294,000 * 104% = $305.760 Carrying value of the…
Q: Please Provide answer as per posibility
A: Required 1 : Since the bond is sold AT PAR, the entry would be Debit Cash $500,000, Credit Bonds…
Q: A $540,000 bond issue on which there is an unamortized discount of $45,000 is redeemed for $446,000.…
A: When bonds were issued on discount, company receives the face value less discount amount
Q: Record the issue of bonds with a par value of $270,000.
A: The journal entries are prepared to keep the record of daily transactions of the business.
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: After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect…
A:
Q: Demopoulos Company acquired $145,800 of Marimar Co., 8% bonds on May 1 at their face amount.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: TryNErr Corporation issued $1,000,000 of ten-year, 10% bonds payable. The market rate of interest at…
A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…
Q: Tomasovich Inc. issued bonds with a face value of $ 100,000 and a stated rate of 8%. Tomasovich…
A: Journal Entry is CrDrCash account $102,500To Bonds Payable account$100,000 To Premium on bonds…
Q: EWO Enterprises issues $4,500,000 of bonds payable.Required:Prepare the necessary journal entries to…
A: Journal is the book of original entry in which all the transactions of the business are recorded…
Q: Bonds Payable has a balance of $802,000 and Discount on Bonds Payable has a balance of $9,624. If…
A: The objective of this question is to calculate the gain or loss on redemption of bonds. The company…
Q: What is the bonds' ANNUAL market rate of interest? % How much total CASH will the company pay for…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
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: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $910 for $94,800. The bonds…
A: Bonds payable (at par) = 100 bonds * $910= $ 91000 Bond issued value= $ 94800 Premium on bond issue=…
Q: A $296,000 bond was redeemed at 103 when the carrying amount of the bond was $307,544. The entry to…
A: Solution: Redemption amount of bond = $296,000*103% = $304,880 Carrying amount of bond = $307,544
Q: Journalize the entry to record the issuance of the bonds.
A: Journal entry: It is a systematic record of a financial transaction of an organization recorded in…
Q: On January 1, Year 1, Jones Company issued bonds with a $110,000 face value, a stated rate of…
A: The bonds are the financial instruments for the business. The bonds are issued at discount when…
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: a $300,000 bond was redeemed at 104 when the carrying value of the bond was $316,000. The entry to…
A: Payment made on redemption = Bond face value x rate of redemption = $300,000 x 104% = $312,000…
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: The balance in the Bonds Payable account is a credit of $67,000. The balance in the Discount on…
A: Bond's carrying amount = Bonds payable - Discount on bond payables…
Q: On the first day of the fiscal year, a company issues a $2,050,000, 9%, five-year bond that pays…
A: Bond: It is long-term financial instrument issued by a company. Interest is paid to bond holders…
Q: Liab. + Equity Rev. − Exp. = Net Inc. A. NA = NA
A: If company bonds mature, then the cash and bond liability decrease by 50000. In statement cash flow…
Q: A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to…
A: Proceeds from redemption = $294,000 * 98/100 = $288,120
Q: A $288,000 bond was redeemed at 98 when the carrying amount of the bond was $280,800. The entry to…
A: Lets understand the basics. For calculating gain/loss on redemption of carrying value of bond, we…
Q: Bonds Payable has a balance of $1,005,000 and Discount on Bonds Payable has a balance of $10,050. If…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: On the first day of the fiscal year, a company issues an $2,250,000, 9%, five-year bond that pays…
A: Premium on Bonds Payable = Issue value of bonds - face value of bonds = $2,379,570 - $2,250,000 =…
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: A $278,000 bond was redeemed at 98 when the carrying amount of the bond was $273,830. The entry to…
A: Given data: Value of Bond: $278,000 Carrying amount of bond : $273,830 Redeemed at 98 If the…
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: 1. Bonds payable with a par value of $10,000 and a premium on bonds payable of $240. 2. Bonds…
A: The question asks how to report bonds payable in the long-term liabilities section of the balance…
Q: 4. MC.11.162 A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: payment of a call premium of $10,000. The bonds D,000. We call these bonds prior to maturity on…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: A $400,000 bond issue on which there is an unamortized premium of $25,000 is redeemed for $450,000.…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Problem IV (113) - Entries for bonds payable. Prepare the necessary journal entries to record the…
A: The bonds are long-term liabilities because the payment of liability is to be made in more than a…
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: The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: On January 1, Year 1, Hart Company issued bonds with a face value of $150,000, a stated rate of…
A: Amortisation Table Date Cash Payment Interest Expense Premium Amortization Carrying Value…
Q: January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is…
A: Bond is financial instrument which is used to raise funds for financial obligations. It can be…
Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: On the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays…
A: When a bond issued for a amount more than its face value then the excess amount received would be…
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- Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober 31. Majestic’s balance sheet at December 31 should reporta. interest expense.b. interest revenue.c. interest payable.d. interest receivable.A Redemption of bonds payable A $1,500,000 bond issue on which there is an unaumortized discount of $70,100 is redeemed for $1,455,000. Journalize the redemption of the bonds.An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.
- The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semiannual bond with interest paid on June 30th and December 31st. The entry to record the sale of the bond would include a: A. $500,000 credit to Cash. B. $500,000 credit to Bonds Payable. C. $30,000 debit to Interest Expense. D. $500,000 debit to Accounts Payable.Entries for Bonds Payable, induding bond redemption The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:Blanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.) Issues $700,000 bonds at 102. c.) Issues $200,000 bonds at 100. Required: 1.) Prepare the journal entries to record the bond issuances under of the independent situations.
- A $650,000 bond issue on which there is an unamortized discount of $45,00, is redeemed for $600,000. What journal entry would you make to record the redemption of the bond?Subject: accountingOn January 1, Year 1, Sheffield Company issued bonds with a face value of $480,000, a term of ten years, and a stated interest rate of 7%. The bonds were issued at 106, and interest Sheffield uses the straight-line method amortize bond discounts and premiums. What is the carrying value of the bonds at December 31, Year 4? Multiple Choice O O OO $497,280 $480,000 $491,520 $494,400 payable each December 31.
- Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the company's journal entriesA $291,000 bond was redeemed at 98 when the carrying amount of the bond was $286,635. What amount of gain or loss would be recorded as part of this transaction? Select the correct answer. loss on bond redemption of $4,365. gain on bond redemption of $5,820. gain on bond redemption of $1,455. loss on bond redemption of $1,455.On January 1, the first day of the fiscal year, a company issues a $1,550,000, 12%, five-year bond that pays semiannual interest of $93,000 ($1,550,000 x 12% x %), receiving cash of $1,503,140. Required: Journalize the first interest payment and the amortization of the related bond discount. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered
