Cullumber Company issued $400,000 of 5-year, 5% bonds at 95 on January 1, 2022. The bonds pay interest annually. Prepare the journal entry to record the issuance of the bonds, assuming the bonds were issued at 101.
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: On January 1, 2025, Cheyenne Corporation issued $630,000 of 9% bonds, due in 10 years. The bonds…
A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…
Q: Marin Corporation issued $468,000 of 6% bonds on May 1, 2025. The bonds were dated January 1, 2025,…
A: A bond is a fixed-income instrument that is used to raise capital by organizations. Bonds are issued…
Q: On January 1, 2025, Stellar Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds were…
A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…
Q: Oriole Company issued $750,000, 7%, 10-year bonds on December 31, 2021, for $680,000. Interest is…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Mellilo Corporation issued $4.4 million of 20-year, 9.5 percent bonds on July 1, 2021, at 98.…
A: Journal entry is the first stage of accounting process. Journal entry used to record business…
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: 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: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…
A: Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash $311,500…
Q: Ivanhoe Company issues $265,000, 20-year, 10% bonds at 103. What is the journal entry to record the…
A: Par value of bonds = $265,000 Issue price of bonds = 265,000 x 103% Issue price of bonds =…
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: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
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: 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 1,2025 Waterway Corporation issued $390,000 of 9%% bonds, due in years. The bond issued…
A: Bonds are often utilized by both public and private sectors to generate capital for a variety of…
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: Xonic Corporation issued $8.4 million of 20-year, 8 percent bonds on April 1, 2024, at 102. Interest…
A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…
Q: Ivanhoe Company issues $3,000,000, 10-year, 8% bonds at 93, with interest payable each January 1.…
A: The bonds are the financial instruments for the business used to raise money from the market. The…
Q: som Company issues $390,000, 20-year, 8% bonds at 101. Prepare the journal entry to record the sale…
A: Bonds are debt instruments that carry the payment for interest annually and payment of face value on…
Q: Cucumber Electric sold $3,300,00, 8%, 10-year bonds on January 1, 2022. The bonds were dated January…
A: Under straight line method, the premium or discount is amortized with equal amounts. The bonds are…
Q: Windsor, Inc. has issued three different bonds during 2019. Interest is payable annually on each of…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: Sandhill Co. sold $5,600,000, 7%, 15-year bonds on January 1, 2025. The bonds were dated January 1,…
A: Journal entry: A journal entry serves as documentation of a business's financial activities kept in…
Q: On January 1, 2025, Pina Corporation issued $630,000 of 9% bonds, due in 10 years. The bonds were…
A: Journal entries are the primary reporting of the business transactions in the books of accounts.…
Q: Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January I, 2022, at face value.…
A: A journal entry is being used to record a commercial transaction in the accounting records of a…
Q: prepare the journal entry to record the sale of these bonds on January 1, 2022. Crane Company issues…
A: >Bonds Payable are the source of finance for the companies.>The bondholders are entitled for a…
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: 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: 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: 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: On January 1, 2025, Shamrock Corporation issued $680,000 of 9% bonds, due in 8 years. The bonds were…
A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…
Q: Crane Company redeemed $178,000 face value, 17.5% bonds on June 30, 2022, at 98. The carrying value…
A: Premium on Bonds = Carrying value of the bonds - Face value of bonds = $190,000 - $178,000 = $12,000
Q: On January 1, 2020, Cullumber Company issued $400,000, 10%, 10-year bonds at face value. Interest is…
A: Bonds- These are the debts of a company on which interest is payable after a fixed interval i.e.…
Q: Sheffield Company issued $400,000, 12%, 10-year bonds on January 1, 2022, for $423,557. This price…
A: Lets understand the basics.There are two methods through which amortization of bond premium or…
Q: Xonic Corporation issued $7.5 million of 20-year, 8 percent bonds on April 1, 2021, at 102. Interest…
A: Bonds Payable: Bonds payable is the source of finance for the company, when a company needs funds…
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 May 1, 2024, Green Corporation issued $1,200,000 of 8% bonds, dated January 1, 2024, for…
A: A bond is a source of finance. Usually,Usually companies and governments issue bonds to the public.…
Q: Novak corp. Issued $417,000,11%, 15 year bond on december 31 2021 for $404,490. Interest is payable…
A: A Bond is a fixed income instrument that represents a loan made by an investor to a borrower,…
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 January 1, 2023, Systems Corporation issues $60,000 of 7%, 15-year bonds, with interest payable…
A: The question is based on the concept of Financial Accounting. Bonds comes under the definition of…
Q: On January 1, 2025, Martinez Company issued $1,800,000 face value, 7%, 10-year bonds at $1,932,482.…
A: Bond is the amount that has been borrowed by the company on which a specified percentage of interest…
Q: On January 1, 2025, Wildhorse Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds…
A: The bonds payable are issued to raise the long-term funds at a fixed rate of interest. Bonds can be…
Q: On January 1, 2022, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $4,800,000 .…
A:
Q: On January 1, 2018, Denver Services issued $20,000 of 8% bonds that mature in five years. The bonds…
A: Given, Bonds Face value = $20,000 Bonds issue price = $19,000
Q: Sheridan Inc. issues $5,000,000, 5-year, 10% bonds at 101, with interest payable annually on January…
A: Journal entry: A journal entry is one of the financial statements which is used to record day-to-day…
Q: mpany sold $2,000,000, 4%, 10-year bonds on January 1, 2022. The bonds were dated January 1 and pay…
A: When a bond is issued at a price more than its par value, it is said to be issued at a premium. When…
Q: Pharoah Electric sold $5,400,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated…
A: The bonds are issued to raise the money from the market or investors. The bonds are reported as the…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 4 images
- On January 1, 2025, Concord Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds were issued for $537.196, and pay interest each July 1 and January 1. The effective-interest rate is 6%. Prepare the company's journal entries for (a) the January 1 issuance. (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Concord uses the effective interest method. (Round answers to 0 decimal places, eg, 38,548. If no entry is required, select "No Entry for the account titles and enter O for the amounts Credit account titles are automatically indented when the amount is entered. Do not indent manually List all debit entries before credit entries) No. (4) Date Account Titles and Explanation Debit CredSunland Company issues $220,000, 20-year, 8% bonds at 103. Prepare the journal entry to record the sale of these bonds on June 1, 2022. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation June 1 Debit CreditOn 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.)
- On January 1, 2025, Stellar Corporation issued $450,000 of 7% bonds, due in 10 years. The bonds were issued for $423,783, and pay interest each July 1 and January 1. Stellar uses the effective-interest method. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Assume an effective-interest rate of 8%. (Round answers to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)Crane Company issued $255,000 , 7%, 10-year bonds on January 1, 2022, for $273,767 . This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. Crane uses the effective-interest method to amortize bond premium or discount. (a) Prepare the journal entry to record the issuance of the bonds. (Round answers to decimal places, e.g. 15,250 . Credit account titles are automatically indented when amount is entered . Do not indent manuallyOn January 1, 2022, Ivanhoe Company issued $425,000, 12%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Your answer is partially correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, Cash 51000 2022 Bonds Payable 51000
- Riverbed Company issued $2,690,000, 9%, 20-year bonds on January 1, 2020, at 105. Interest is payable annually on January 1. Riverbed uses straight-line amortization for bond premium or discount. Prepare the journal entries to record the following events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The accrual of interest and the premium amortization on December 31, 2020. (c) The payment of interest on January 1, 2021. (d) The redemption of the bonds at maturity, assuming interest for the last interest period has been paid and recorded. Date Account Titles and Explanation Debit Credit > >Carla Corporation issued $396,000 of 7% bonds on May 1, 2025. The bonds were dated January 1, 2025, and mature January 1, 2028, with interest payable July 1 and January 1. The bonds were issued at face value plus accrued interest. Prepare Carla's journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries) No. (a) (b) (c) Date May 1, 2025 Dec 31, 2025 July 1, 2025 Account Titles and Explanation Debit Credit SUPPOIvanhoe Corporation has issued three different bonds during 2024. Interest is payable annually on each of these bonds. (a) Your answer is partially correct. On January 1, 2024, Ivanhoe issued 1,050, 8%, 5-year, $1,000 bonds dated January 1, 2024, at face value. Prepare the journal entry to record the bond transaction at the date of issue. (List debit entry before credit entry. 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 O for the amounts.) Date Account Titles Debit Credit Jan. 1 Cash Bonds Payable
- Marigold Corporation issued $660,000 of 6% bonds on May 1,2025 . The bonds were dated January 1,2025 , and mature January 1 , 2028 , with interest payable July 1 and January 1 . The bonds were issued at face value plus accrued interest. Prepare Marigold's journal entries for (a) the May 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry.On January 1, 2018, Western Services issued $20,000 of 8% bonds that mature in five years. The bonds were issued for $20,750. Prepare the journal entry to issue bonds. Omit explanation.Carla Vista Corporation issued 2,800, 6%, 5-year, $1,000 bonds dated January 1, 2022, at 100. Interest is paid each January 1.(a)Prepare the journal entry to record the sale of these bonds on January 1, 2022. (b)Prepare the adjusting journal entry on December 31, 2022, to record interest expense (c)