Duval Co. issues four-year bonds with a $109,000 par value on January 1, 2019, at a price of $104,910. The annual contract rate is 5%, and interest is paid semiannually on June 30 and December 31.    Prepare the journal entry for maturity of the bonds on December 31, 2022 (assume semiannual interest is already recorded).

Q: Ellis Company issues 6.5% , five-year bonds dated January 1, 2019, with a $570,000 par value. The…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.…

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A: When the bonds are issued at par, then there shall be no premium or discount on bonds payable.

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A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

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…

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A: A bond is a debt security that is always issued by a company, municipality, or government. It is a…

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A: A premium bond is a bond whose current price is more than its face value. It will always have a…

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A: Meaning of Bonds Bonds are fixed debt instruments where a company issues bonds to the lenders. The…

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A: In the given question we need to prepare the journal entries for following: (a)The issuance of the…

Q: On January 1, 2024, Reyes Recreational Products issued $125,000, 10%, four-year bonds. Interest is…

A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…

Q: Stanford issues bonds dated January 1, 2019, wi 3%, and interest is paid semiannually on June 30…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: On January 1, 2018, Watch Works Incorporated (wWI) issued $77,000 par value, 8%, four-year bonds…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

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A: The bonds payable are treated as long term liabilities. The bonds are issued to raise money from the…

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: A Company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of…

A: Interest expense = 114000 x 5% x 6/12 = 2850 bond amortisation = (114000-109870)/8 = 516.25

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…

A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

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A: Bonds are debt instruments which are issued to raise money from investors. Bonds may be issued at…

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A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable. The…

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: Quatro Company issues bonds dated January 1, 2021, with a par value of $740,000. The bonds' annual…

A: Issue Price$758,222Less: Par Value$740,000Premium ($758,222 - $740,000)$18,222

Q: On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of…

A: Calculate the present value of the principal amount as shown below:

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A: Journal entry is required to make to record event and transaction that are occured during particular…

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…

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A: Formula: Premium on Bonds = Sell price - PAR value Deduction of PAR value from Sell price of bonds…

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A: Bonds are the securities issued by the entity for the purpose of raising funds from the market.…

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A: When a corporation sells bonds to earn cash, bonds payable are recognized. The corporation is a…

Q: The Kingbird Company issued $240,000 of 8% bonds on January 1, 2020. The bonds are due January 1,…

A: Bonds are the instrument by which company raises the money for a fixed interest payment as finance…

Q: Quatro issues bonds dated January 1, 2021, with a par value of $900,000. The bonds' annual contract…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: Quatro Company issues bonds dated January 1, 2021, with a par value of $400,000. The bonds' annual…

A: The bonds are the financial instruments that are used to raise money from the market or investors.…

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A: A bond payable is an instrument to raise finance from the market or from existing stockholders in…

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, 2018​,  Lane Unlimited issues 15​%, 10​-year bonds payable with a face value of…

A: 1) Premium on bonds payable = 1800 bonds * $5 = $9,000 It has to be amortised over the life of bonds…

Q: Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $67,000 for $73,507 on January 1,…

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Q: On July 1, 2019, Waterway Industries issued 11% bonds in the face amount of $12500000, which mature…

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Q: On January 1, 2019, Hackman Corporation issued $1,400,000 face value 12% bonds dated January 1,…

A: Step 1:Required journal entries related to bonds are presented hereunder:No. DateAccount Titles and…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

A: Bond is a borrowing security issued by the company to raise funds from the market by making an…