Ellison Corporation issued $300,000, 8%, five-year bonds on January 1, 2019, for$325,591 when the market interest rate was 6%. Interest is paid semiannually on January 1and July 1. The corporation uses the effective-interest method to amortize bond discountsand premiums. The total amount of bond interest expense recognized on July 1, 2019,would be closest toa. $9,000.b. $9,768.c. $12,000.d. $24,000.

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: 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.…

Q: On December 1, 2019, Tane, Inc., issued $460,000 of 7 percent, 3-year bonds for cash of $460,895.…

A: Borrowing costs are amortized as part of the cost of a qualifying asset when it is anticipated that…

Q: On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000.…

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

Q: On January 1, 2019, X Sports Corporation issued 10% bonds with a face value of $200,000. The bonds…

A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…

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 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: Rombus corp issued P600,000, 9%, 20-year bonds on January 1, 2020, at P103. Interest is payable…

A: Each transactions needs to be recorded in the books of accounts. Journal entries are basic…

Q: Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for…

A: Bonds is a financial debt instrument that pays fixed periodic interest and face value amount at the…

Q: On January 1, 2021, a company issued $2,000,000, 10-year, 7% bonds, when the market rate was 8%.…

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

Q: On July 1, 2023, AAA Company issued P1,198,000 of 10%, 20 year bonds with a face amount of…

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

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: Clark Company issued $80,000 of 10-year, 7% bonds payable on January 1, 2024. Clark Company pays…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

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: 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: Sciamanna Corporation issued $500,000 of 6%, 10-year bonds payable on January 1, 2022. The market…

A: The cash borrowed on January 1, 2022 would be present value of interest annuity & maturity…

Q: Mitchell Inc. received $568,547 from the issuance of 600, 6%, $1,000 bonds on January 1, 2020. The…

A: First, let's compute if there's a discount or premium on the bonds issued. Get the difference…

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: 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, SB Company issued its 10% bonds in the face amount of P10,000,000 that mature on…

A: Solution: Interest expense on July 1 = P9,160,000*12%*6/12 = P549,600 Semiannual interest paid =…

Q: Strick Sticky Corp. is authorized to issue $2,000,000 of 8%, ten year bonds payable. On February 1,…

A: The amortization table is a table of the payments in which all the carrying values of the bonds are…

Q: If the company issued RO 100,000 , 5% interest, 10-year bonds at 98 on January 1, 2021, which of the…

A: Answer Bond issued = RO98 Face value per BOND = RO100 Discount price per BOND = (RO100 - RO98) = RO2…

Q: On June 30, 2021, Arlington Company issued $2,100,000 of 10-year, 3% bonds, dated June 30, for…

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

Q: Crane Company issued $310,000,6 %, 10-year bonds on January 1, 2022, for $333,936. This price…

A: The amortization of premium on bond issue decreases the carrying value of bond payable and the…

Q: On January 1, 2021, Daniel Corp. issued $500,000 of 10-year, 8% bonds for $385,298, yielding a…

A: Bonds payable refer to financial instruments which can be issued to raise capital. Bonds are issued…

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 June 1, 2019, Vape Inc. issued P12,000,000 of 10% bonds to yield 12% effective rate. Interest is…

A: The carrying value of a bond is the the net amount between the bond's face value plus 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, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…

A: Working notes :-…

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: 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: 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: Grocery Corporation received $301,001 for 13.50 percent bonds issued on January 1, 2021, at a market…

A: Introduction If stated interest rate on bonds is higher than the market rate of interest then such…

Q: On January 1, 2021, QuantumQuarry Co. issued a 5-year bond with a face value of $500,000. The bond…

A: Bonds/Notes are the instruments/ securities issued by the companies to raise funds for the company…

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: On July 1, 2019, Matalik Company issued 5,000 of the P1,000 face value, 8% bonds for P4,615,000 to…

A: Since effective interest rate method is being used.  As per effective interest rate method the…

Q: Sheffield Corp. issues $6000000 face value of bonds at 96 on January 1, 2019. The bonds are dated…

A: The bonds may be issued at a discount when the interest offered by bonds is lower that the interest…

Q: On January 1, 2021, Solo Securities issued a $600,000,6%, three-year bonds payable. The market rate…

A: When the issue price of a bond is lower than the face value then, it is called to be issued at a…

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: Krause Corporation issued $2,600,000​, 10​-year, 5​% bonds for $2,470,000 on January​ 1, 2019.…

A: Amortization is defined as the technique used to  lower the book value of the intangible asset…

Q: Oriole Company issued $636,000 of 10%, 20-year bonds on January 1, 2020, at 103. Interest is payable…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…