Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the company's journal entries
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: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…
A: Cash(600000*102/100) Dr $612000 Bond payable Cr $600000 Premium on issue Cr.…
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: 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: 2. On January 1, a company issued and sold a $409,000, 6%, 10-year bond payable, and received…
A: Face value of bonds$409,000Less: Proceed received on issuance of bonds$404,000Discount 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: 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: On January 1, Year 1, Hanover Corporation issued bonds with a $56,500 face value, a stated rate of…
A: Bonds Payable: Bonds Payable is an long term debt issued by the government and company's to raised…
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: 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: 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 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: 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: On January 1, the first day of the fiscal year, a company issues an $1,350,000, 11%, five-year bond…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: n 1/1/20, $300,000 of 10 year, 8% bonds were issued for $262,616. The issue price was based on an…
A: Straight line amortization method: Under the straight line method of amortization the bond discount…
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: Investco issued $30,000 of 6.25% bonds on January 1 at a discount of $2,107. Interest expense…
A: The book value of the bond is calculated by subtracting the unamortized discount from the face value…
Q: Diaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated…
A: Bond is a financial instrument used to raise funds by large organizations. The issue price of bond…
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: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 each for $104,000. The…
A: Journal entries are passed following the golden rules of accounting Debit all assets and expenses…
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: Diaz Company issued bonds with a face value of $127,000 on January 1, Year 1. The bonds had a stated…
A: As you have asked multiple sub-parts we can solve only first three sub-parts for you please repost…
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: 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, Kenneth Cole Inc. issued $2,000,000, 5%, 10-year bonds, with interest payable…
A: Bonds can be referred to as financial securities which are issued by large organizations to raise…
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: 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: Anne Corp. issued $600,000, 5% bonds.Required:Prepare the necessary journal entries to record the…
A: Sno Account Titles and Explanation Debit Credit A Cash $ 600,000 5% Bonds Payable $…
Q: A Redemption of bonds payable A $1,500,000 bond issue on which there is an unaumortized discount of…
A: All the transactions of the company that are happened during the year will be recorded first in the…
Q: On August 1, 2022, Bridgeport Corp. issued $483,600, 7%, 10-year bonds at face value. Interest is…
A: given that, Bridgeport Corp. issued bonds worth $483600 Rate of interest = 7% life of bond = 10…
Q: On January 1, the first day of the fiscal year, a company issues an $1,800,000, 4%, five-year bond…
A: Journal: Recording of a business transactions in a chronological order.
Q: On the first interest date, using the effective-interest method, the debit entry to Interest Expense…
A: Given information is: On January 1, Vaughn Manufacturing issued $4300000, 7%, 5-year bonds with…
Q: iaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated…
A: Bonds payable are debt instruments issued to raise money. When the contract rate is more than the…
Q: On January 1, Marigold Corp. issued $270,000, 7%, 10-year bonds at face value. Interest is payable…
A: Accrual of interest on December 31 = Face value of bonds x rate of interest x period = $270000*7%*1…
Q: Entries for Bonds Payable, induding bond redemption The following transactions were completed by…
A: Bonds: Bonds are long term promissory notes that are represented by the company while borrowing…
Q: Blanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.)…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: What would be the required journal entry on the date of issuance if a company issues $100,000…
A: Premium on bonds payable = Issue price of Bonds - Face value of Bonds = $103,769 - $100,000 = $3,769
Q: a On January 1, Year 1, Sheffield Company issued bonds with a face value of $480,000, a term of ten…
A: In essence, a bond is a loan made by an investor to a borrower, usually a company or the government.…
Q: Bonds Payable has a balance of $1,091,000 and Discount on Bonds Payable has a balance of $13,092. If…
A: Step 1: Calculate the carrying amount of bonds payable on the redemption rate.
Q: Jacobs Company issued bonds with a $168,000 face value on January 1, Year 1. The bonds were issued…
A: The straight-line method of amortization allocates the discount evenly over the life of the bond.…
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$644,636 and the effective-interest rate is 6%,
prepare the company's journal entries](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F89b3ba69-43f8-4ea0-8e86-807b2fe95303%2F4c32db7b-85a7-4987-8be9-db39447305a5%2Fsoow4ei_processed.jpeg&w=3840&q=75)
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- 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 enteredAn $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.A $500,000 bond issue on which there is an unamortized discount of $35,000, is redeemed for $475,000. What journal entry would you make to record the redemption of the bond? Make it below:
- . On 1/1/21, Ehrlich Co. issued 4 year bonds with a face value of $700,000. The stated (bond) rate is 8%, payable semiannually on 1/1 and 7/1. The market rate at the time of issuance was 10%. a. Calculate the issue price of the bonds. b. Prepare the journal entry for the issuance of the bonds. c. Complete the amortization table below. Date cash paid interest expense amortization carrying value 1/1/21 7/1/21 1/1/22 7/1/22 d. Prepare the journal entries for the 7/1/21 interest payment and amortization, 12/31/21 interest accrual and amortization, and 1/1/22 interest payment. e. Prepare the journal entry for retirement of the bonds at maturity f. Assume instead that the bonds were redeemed on 7/1/22 at 102. Prepare the journal entry.Anne Corp. issued $600,000, 5% bonds. Required: Prepare the necessary journal entries to record the issuance of these bonds assuming the bonds were issued at 92Present entries to record the selected transactions described below: a. Issued $2,750,000 of 10-year, 8% bonds at 97. If an amount box does not require an entry, leave it blank. b. Amortized bond discount for a full year, using the straight-line method. If an amount box does not require an entry, leave it blank. c. Called bonds at 98. Assume the bonds were carried at $2,692,250 at the time of the redemption. If an amount box does not require an entry, leave it blank.
- On January 1, Year 1, Price Company issued $291,000 of five-year, 5 percent bonds at 98. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the entry for issuance of bonds. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journalDiaz Company issued bonds with a $149,000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 97. The straight-line method is used for amortization. Required a. Use a financial statements model like the one shown next to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31, Year 1, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financial statements. Note: Use + for increase or for decrease. In the Statement of Cash Flows column, use the initials OA to designate operating activity, IA for investing activity, and FA for financing activity. Not all cells require input. Effect of Transactions on Financial Statements Event Number Assets Balance Sheet Liabilities Income Statement Stockholders' Equity Revenue Expense Net Income Statement of Cash Flows 1. 2.…Kartel is planning to issue 360 bonds, each having a face amount of $1,000. Required: 1. Prepare the journal entry to record the sale of the bonds at par. Record issuance of bonds at par 2. Prepare the journal entry to record the sale of the bonds at a premium of $34,000. Record issuance of bonds at premium 3. Prepare the journal entry to record the sale of the bonds at a discount of $41,000. Record issuance of bonds at discount 4. Conceptual Connection: Assuming the stated rate is identical for the previous three scenarios, in which scenario is the market rate of interest (yield) highest? The bonds sell at
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