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.

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.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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: Required For each of the following situations, calculate the amount of bond discount or premium, if…

A: Formulas used; If Issue price is greater than face value then the resultant value will be premium.…

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: O'Halloran Inc. produces and sells outdoor equipment. On July 1, Year 1, O'Halloran Inc. issued…

Q: ABC Company issued bands with a face amount of $1,000,000 and received $1,000,000 cash. Prepare the…

A: Solution: Bond are issued by the company to obtain debt financing. Bonds carry interest rate that…

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948

Q: Bonds Payable Transactions Beaufort Vaults Corporation produces and sells burial vaults. On July 1,…

A: Bonds are instrument issued by company acknowledging the debt raised by company. It is a liability…

Q: For each of the following situations, calculate the amount of bond discount or premium, if any. gray…

A: When the bonds are issued at a price lower than the face value of the bond, they are said to be…

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: A company issues bonds with a face value of $5,000,000 and receives cash proceeds of $5,500,000 from…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

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: Bond Investment Transactions Journalize the entries to record the following selected bond…

A: The formulation:

Q: the first day of the fiscal year, a company issues a $100,000, 8%, 10-year bond that pays semiannual…

A: Governments and businesses utilize bonds as a key component of the financial market to raise…

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: A $1,600,000 bond issue on which there is an unamortized premium of $70,500 is redeemed for…

A: The company shares, bonds, debentures, etc., will be issued to meet the capital requirement of the…

Q: Complete the following: (a) Prepare the journal entry to issue $100,000 bonds that sold for…

A: Lets undertand the basics. Bonds can be issued at par value, at discount or at premium. If bond is…

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: Journalize the entries to record the following selected bond investment transactions for Starks…

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

A: Effective interest method The effective interest method, which is dependent on the object's…

Q: A$1,000,000 bond is issued on 7/1. The transaction is recorded on 7/1 by the UCF Bicycle Vending…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Nichols Inc. issued 3,000 $1,000 bonds at 102. Each bond was issued with one detachable stock…

A: Proportional Method of Allocation between bond and Warrant The division of the proceeds from a bond…

Q: Vaughn Corporation issued 1,800 $1,000 bonds at 101. Each bond was issued with one detachable stock…

A: Answer:- A bond is a fixed income security that is used to signify a loan that a borrower has…

Q: Issuance of Long-Term Debt Anne Corp. issued $366,000, 5% bonds. Required: Provide the necessary…

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: 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: On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

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: Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $40,000,000 of…

A: BOND Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

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: Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober 31.…

A: Given is: Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober…

Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…

A: Bonds are issued by the company to meet the financial requirements of the company without losing its…

Q: A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the amount…

A: Note: When market or effective rate of interest is less than the interest rate on bonds then bonds…

Q: The Fuller Company issued a $500,000, 5-year, 6% bond at par. It is a semiannual bond with interest…

A: The bonds of The Fuller Company are issued at par value, and the following accounts can be used to…

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: Determining Bond Features and Selling Price On January 1 of Year 1, the following debt was…

A: When a bond, i.e., a debt security that doesn't provide interest (also known as coupons), and rather…

Q: On the day Federer Ltd redeemed its $1,000,000 face value bonds at 98, their carrying value was…

A: Redemption of bond payable refers to the process by which a company or issuer repurchases and…

Question

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.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Introduction

VIEW

Step 2 Final Solution

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Prepare entry for bonds issued. BE10.9 (LO 3), AP Ravine Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on June 1, 2022. Prepare journal entries for bonds issued at face value.
Bonds Payable has a balance of $1,091,000 and Discount on Bonds Payable has a balance of $13,092. If the issuing corporation redeems the bonds at 98, what is the amount of gain or loss on redemption?
Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the company's journal entries
A $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.
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.
A $1,000,000 bond issue on which there is an unamortized premium of $71,600 is redeemed for $1,051,500. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331…
Blue Spruce Corp. issues $310,000 of bonds for $325,500. Prepare the journal entry to record the issuance of the bonds.
Blue Corporation issued 2,100 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 98, and the warrants had a market price of $41.Use the proportional method to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round your answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
(a) Prepare the journal entry to issue $500,000 bonds that sold for $470,000. (b) Prepare the journal entry to issue $500,000 bonds that sold for $518,000.
Present 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.
Haresh
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 journal