Blue Corporation issued a 10 year bonds on January 1, 2019. Costs associated with the bond issuance were P1, 600,000. Blue Corporation uses the straight line method to amortize bond issue costs. Prepare the December 31, 2019 entry to record the 2019 bond issue cost amortization.
Q: LRNA Company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. This price…
A: The bonds are issued at premium when the market rate is lower than the coupon rate of bonds payable.…
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: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…
A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…
Q: On December 31, 2019, Spearmint, Inc, issued $450,000 of 9 percent, 3-year bonds for cash of…
A: Interest payment on June 30,2020 = Face value of bonds x rate of interest x no. of months/12 =…
Q: January 1, 2024, Nurses Credit Union (NCU) issued 7%, 20-year bonds payable with face value of…
A: The retirement of a bond is the repayment of bond at maturity. The principal is repaid and the…
Q: On January 1, 2024, Reyes Recreational Products issued $150,000, 9%, four-year bonds. Interest is…
A: The objective of the question is to prepare an amortization schedule using the effective interest…
Q: Martinez Company issued $650,000, 9%, 10-year bonds on January 1, 2020, at 103. Interest is payable…
A: Interest to be paid = Face value of bonds x stated rate of interest x period = $650,000 x 9% =…
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 July 1, 2018, McNamara Company issued for $598,964, 10%, 20-year bonds with a face value of…
A: When bonds are issued at premium the premium on bonds payable is amortized over the life of the…
Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…
A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…
Q: Sheridan Company issued $279,000, 9%, 15-year bonds on December 31, 2021, for $267,840. Interest is…
A: In the given question we need to prepare the journal entries for following: (a)The issuance of the…
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: 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: 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: McNeil Corporation issued $750,000 of 6%, 10-year bonds payable on January 1, 2019. The market…
A: Introduction: Interest amount: Interest is charged on the Principal amount. Interest is calculated…
Q: Simko Company issued $670,000, 10-year, 4 percent bonds on January 1, 2021. The bonds were issued…
A: When, the debentures are issued at less than par value, it is has been issued at discount. The…
Q: On January 31, 2020, Courtenay Sports Cars issued 14-year, 7% bonds with a face value of $160,000.…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…
A:
Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…
A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…
Q: Nabil Company issued $1,500,000 of bonds on January 1, 2020. Instructions Prepare the journal…
A: The word redemption seems to have various purposes in the financial and business world, depending on…
Q: Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2019, that pay interest semiannually…
A: Since there are multiple sub parts, the calculation will be given for first three sub parts. To get…
Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…
A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…
A: The question is based on the concept of the issue of securities. As per Bartleby guidelines we are…
Q: Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2021, that pay interest…
A: Hillside - Bond Issuance and Amortization1. Journal Entry to Record Bonds' Issuance (January 1,…
Q: On January 31, 2021, Dogwood Logistics, Inc, issued ten-year, 12% bonds payable with a face value of…
A: Lets understand the basics.Bonds can be issued at,(1) Par value(2) Premium(3) Discount Amortization…
Q: Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…
A: In this question, information related to bonds was given, on the basis of which we have to make an…
Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…
A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…
Q: On January 1, 2019, Gates Corporation issued $200,000 of 5-year bonds due December 31, 2023, for…
A: In the given sum we will have to calculate the amortization expenses and interest expenses of the…
Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2019, with a $250,000 par value. The…
A: It is a fixed income instrument that represents a loan made by an investor to a borrower ( corporate…
Q: Polk Incorporated issued $200,000 of 13% bonds on July 1, 2019, for $206,801.60. The bonds were…
A: The following computations are done for Polk Incorporation.
Q: Crane Company issued $310,000,6%,10-year bonds on January 1, 2022, for $333,936. This price resulted…
A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…
Q: On January 1, 2018, Splash City issues $470,000 of 7% bonds, due in 20 years, with interest payable…
A: Amortization schedules show down how much of each payment goes toward principle reduction and how…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…
A: Please note: Since you have posted a question with multiple sub-part, we will solve the first three…
Q: Laudie Company issued $400,000 of 5%, 10-year bonds on January 1, 2020, at 94. Interest is payable…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…
A: Face value of bond = $ 1,900,000 Issue price of bond = $ 1,641,812…
Q: On January 1, 2019, Booth Sales issues $10,000 in bonds for $10,900. These are 5-year bonds with a…
A: Semiannual interest payment = Face value of bonds * Annual stated rate * 6/12 Semiannual premium…
Q: Burris Corporation is authorized to issue $800,000 of 9% bonds. Interest on the bonds is payable…
A: Date Accounts Titles Debit Credit Apr-01 Cash $8,18,000 Bonds Payable $8,00,000…
Q: Flamingo Inc. issued $2,000,000, 5%, 5-year bonds on January 1, 2019, at 104. Interest is payable…
A: Bonds: Bonds are the long-term promissory notes that are issued by a company while borrowing money…
Q: On January 1, 2019, Knorr Corporation issued $1,000,000 of 9%, 5-year bonds dated January 1, 2019.…
A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…
Q: Hillside issues $1,700,000 of 8%, 15-year bonds dated January 1, 2021, that pay interest…
A: Bonds payable arise when a company issues bonds to investors to borrow money to meet any business…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: DateGeneral JournalDebitCredit January 01Cash$3,456,448Discount on Bonds Payable$543,552…
Q: On March 31, 2021, Gardner Corporation received authorization to issue $90,000 of 9 percent, 30-year…
A: 1) sale of bonds (bonds issued at face value) April 30 Cash a/c…
Q: Hasley Company issued $800,000, 11%, 10-year bonds on December 31, 2018, for $730,000. Interest is…
A: Journal entries forms part of basic accounting where the transactions of an organisation are being…
Q: On March 1, 2020, Quinto Mining Inc. issued a $690,000, 8%, three-year bond. Interest is payable…
A: When a bond is issued at a rate higher than the market interest rate then it’s the bond is issued at…
Q: Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Hasley Company issued $800,000, 11%, 10-year bonds on December 31, 2018, for $730,000. Interest is…
A: Journal entry to record the issuance of the bonds: Date Account Titles Debit ($) Credit ($)…
Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2019, with a $250,000 par value. The…
A: It is a fixed income instrument that represents a loan made by an investor to a borrower (corporate…
Q: Ike issues $180,000 of 11%, three-year bonds dated January 1, 2019, that pay interest semiannually…
A: “Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Blue Corporation issued a 10 year bonds on January 1, 2019. Costs associated with the bond issuance were P1, 600,000. Blue Corporation uses the
![](/static/compass_v2/shared-icons/check-mark.png)
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
- On January 1, 2024, Robert Unlimited issues 8%, 20-year bonds payable with a face value of $240, 000 The bonds are issued at 104 and pay interest on June 30 and December 31. (Assume bond payable are amortized using the straight-line amortization method.) Read the requirements. Requirement 1. Journalize the issuance of the bonds on January 1, 2024. (Record debits first, then credits. Select explanations on the last line of the journal entry.) \table[[Date, Accounts and Explanation, Debit, Credit ], [2024], [Jan. 1]...........] Requirements Joumalize the issuance of the bonds on January 1, 2024. Journalize the semiannual interest payment and amortization of bond premium on June 30, 2024. Journalize the semiannual interest payment and amortization of bond premium on December 31, 2024 Journalize the retirement of the bond at maturity, assuming the last interest payment has already been recorded. (Give the date.)Novak corp. Issued $417,000,11% 15 year bonds on december 31,2021 for $404,490.interest is payable annually on december 31. Novak uses the straight line method to amortize bond premiums or discount. Prepare the journal entry to record the payment of interest and the discount amortization on december 31,2022On January 1, 2019, Rodgers Company purchased $200,000 face value, 10%, 3-year bonds for $190,165.35, a price that yields a 12% effective annual interest rate. The bonds pay interest semiannually on June 30 and December 31. Required: 1. Record the purchase of the bonds. 2. Prepare an investment interest income and discount amortization schedule using the effective interest method. 3. Record the receipts of interest on June 30, 2019, and June 30, 2021.
- Frozen Company issues $31,800 of ten year bonds on January 1, 2020 at 108. It uses the straight line method of amortization and prepares annual financial statements on December 31st. (Keep two decimal places in all your intermediate calculations). Required 1: What is the carrying value of the bonds on 2020 Financial Statements? Required 2: What is the carrying value of the bonds on 2021 Financial Statements? Required 3: What is the carrying value of the bonds on 2024 Financial Statements?Hillside issues $1,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $864,113. Required:4. Prepare the first two years of a straight-line amortization table.5. Prepare the journal entries to record the first two interest payments.On March 31, 2021, Gardner Corporation received authorization to issue $50,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated March 31, 2021, but the bonds were not issued until April 30, 2021. They were issued at face value. a. Prepare the journal entry at April 30, 2021, to record the sale of the bonds. b. Prepare the journal entry at September 30, 2021, to record the semiannual bond interest payment. c. Prepare the adjusting entry at December 31, 2021, to record bond interest expense accrued since September 30, 2021. (Assume that no monthly adjusting entries to accrue interest expense had been made prior Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
- On January 1, 2021, Sunrise Corporation issued $4,000,000, 8%, 5-year bonds dated January 1, 2021, at 95. The bonds pay annual interest on January 1. The company uses the straight-line method of amortization and has a calendar year end. Prepare all the journal entries that Sunrise Corporation would make related to this bond issue through January 1, 2022. Be sure to indicate the date on which the entries would be made. (Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem.) Date Account Titles and ExplanationHillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. Check (3) $4,143,552 3. Determine the total bond interest expense to be recognized over the bonds' life. (4) 12/31/2022 carrying value, $3,528,920 4. Prepare the first two years of a straight-line amortization table like Exhibit 14.7. 5. Prepare the journal entries to record the first two interest payments.Ellis Company Issues 7.0%, five-year bonds dated January 1, 2019, with a $510,000 par value. The bonds pay Interest on June 30 and December 31 and are issued at a price of $531,755. The annual market rate is 6% on the Isue date. Required: 1. Compute the total bond Interest expense over the bonds' life. 2 Prepare an effective interest amortization table for the bonds' life. 3. Prepare the journal entries to record the first two Interest payments. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare an effective interest amortization table for the bonds' life. Semiannual Period- Cash Interest Bond Interest Paid Premium Amortization Unamortized Premium Carrying Value End Expense 01/01/2019 21,755 S 531,755 08/30/2019 17,850 12/31/2019 17,850 08/30/2020 12/31/2020 08/30/2021 12/31/2021 08/30/2022 12/31/2022 08/30/2023 12/31/2023 Total
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)