Early Retirement of Bonds Interest is payable semiannually Elston Company issued $500,000 of eight percent 20-year bonds at 106 on January 1, 2010. on July 1 and January 1. Through January 1, 2016. Elston amortized $5,000 of the bond premium. On January 1,2016, Elston retired the bonds at 103 after making the interest payment on that date). Prepare the journal entry to record the bond retirement on January 1, 2016. General Journal Credit Debit Description Date s 500,000 v s Jan.1 Bonds payable Premium on Bonds payable Gain on Bond Retirement Cash To retire bonds and record gain on bond retirement

Q: Un 1/1/2020, Blue Company issued 5-year, 9% bonds with a par value of $1,000,000 The company…

A: Bond is an instrument which is issued at par, discount or at premium.  When company required the…

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: Sheffield Company issued $648,000 of 10%, 20-year bonds on January 1, 2020, at 104. Interest is…

A: Proceeds from issue of bonds = Face value of bonds x issue price /100 = $648000*104/100 = $673920

Q: On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay interest…

A: Market Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: Price Company issued a $700,000, 8%, 10-year bond payable at face value on January 1, 2018 Interest…

A: A bond refers to fixed income instrument that represents a loan made by an investor to a borrower…

Q: On January​ 1, 2017​, Delaney Corporation issued five​-year, 10​% bonds payable with a face value of…

A: Dear student, we can not solve more than three sub-parts of a question if a question has more than…

Q: January 1, 0,000, 4%, 10-year bond that pays semiannual int 6 x 1/2 year), receiving cash of…

A: Bond investing provides a consistent income stream, capital preservation, and portfolio diversity.…

Q: Crane Company issued $830,000, 8%, 20-year bonds on January 1, 2025 at 103. Interest is payable…

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

Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…

A: 20- Year 6% Bond =. $380,000  Interest Rate =6%  Interest Payable on January 1.

Q: Robin Corporation retires its $800000 face value bonds at 104 on January 1, following the payment of…

A: Redemtption value refers to the price which is to be considered while purchasing the security for…

Q: Gridley Company issued $988,000, 12%, 10-year bonds on December 31, 2014, for $928,720. Interest is…

A: Discount on bonds payable = Face value of bonds issued - selling price ofBonds  = $988,000 -…

Q: 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31,…

A: Bond retirement means paying off the bond obligations to the investors. The bond requirement may…

Q: Deleau Equipment Ltd. issued 11%, five-year bonds with a face value of $80,240,000 on October 1,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Blossom Company issued $510,000 of 8%, 20-year bonds on January 1, 2027, at face value. Interest is…

A: Interest expense= Face value×Interest expenseFor issue of bonds the cash account is to be debited…

Q: Sheffield Company issued $648,000 of 10%, 20-year bonds on January 1, 2020, at 104. Interest is…

A: Introduction: On January 1, 2020, Sheffield Company issued $648,000 of 10 percent, 20-year bonds at…

Q: Sunland Electric sold $6,960,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Vaughn Manufacturing retires its bonds at 105 on January 1, following the payment of annual…

A: In the current case, the company holds bonds with a face value of $720,000. The carrying value of a…

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: X Corporation borrowed money by issuing $1,000,000 of bonds at 102 on January 1, 2022. The bonds pay…

A: DateAccountDebitCreditJanuary 1, 2022Cash ($1,000,000 * 102%)$ 1,020,000            Bonds Payable $…

Q: X Corporation borrowed money by issuing $100,000 of bonds at 103 on January 1, 2019. The bonds pay…

A: Introduction:- A journal entry is an act of recording or keeping track of any financial or…

Q: On January​ 1, 2018​, Technicians Credit Union, ​(TCU​), issued 8%​, 20​-year bonds payable with a…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Schwer, Inc. issued $500,000 of 10%, 15-year bonds at 95 on July 1, 2012. Interest is payable…

A: Bonds may be issued at discount when the interest on the bonds is higher than the market interest…

Q: On January 1, 2015, a company issues 5-year bonds with a stated interest rate of 6% and records the…

A: Interest payable on January 1 = Face value of bonds x rate of interest x 6/12 = $500000 x 6% x 6/12…

Q: Volunteer Inc. issued bonds with a $650,000 face value, 12% interest rate, and a 4-year term on July…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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 June 30, 2017, ABC Co. issued $6,000,000, 6%, 4-year bonds. The bonds were sold to yield an…

A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: The Colson Company issued S300.000 bonds at 98 on January 1, 2017. The bonds are due January 1,…

A: Given information is: Face value of bonds = $300,000 Issue price = 98 per bond

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 August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is…

A: As per accrual principle of accounting, all the expenses need to be accounted for within the…

Q: sheridan Limited issued $4,500,000 10-year, 8% bonds on January 1, 2021, when the market interest…

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

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…

Q: . Dechow, Inc., issued $250,000 of 8%, 15-year bonds at 97 on July 1, 2009. Interest is payable…

A: a.Prepare journal entry to record issuance of bonds payable and the retirement of the bonds.

Q: Issuance of Bonds On June 30th 2015 issued a $2,000,000 25 year 7% bond for $1,920,000. Interest is…

A: Bonds are high security debt instruments that enable entity's to raise funds and capital…

Q: Blossom Company sold $4,100,000, 5%, 10-year bonds on January 1, 2022. The bonds were dated January…

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

Q: On June 30, 2017, ABC Co. Issued $ 6,000,000, 6%, 4-year bonds. The sold to yield an effective…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Seaview Company issued $200,000 of 15-year, 9% callable bonds payable on July 31, 2025, at 97. On…

A: Bond retirement refers to meeting the obligation related to bonds. It means bonds are retired by…

Q: On January 1, 2025, Sweet Corporation issued $490,000 of 7% 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: Sterium Company issues P1,000,000 face value, 6%, 5-year bonds payable on December 31, 2018.…

A: Journal entries forms part of basic accounting entries in which transactions of an organisation are…

Q: Sunland Company issues $220,000, 20-year, 8% bonds at 103. Prepare the journal entry to record the…

A: Journal entries are those which are recorded for every transaction which takes place during the…

Q: On January 1, 2022, Oriole Company issued $430,000, 8%, 10-year bonds at face value. Interest is…

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

Q: Novak corp. Issued $417,000,11% 15 year bonds on december  31,2021 for $404,490.interest  is payable…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…