Emery Trust Inc. issued $100,000, a 5-year bond on January 1, 2022 paying 4% interest on a semi-annual basis every January 1 and July 1. Instructions Using the following PV factor tables, and answer worksheet, to prepare the first-year journal entries for the bond issue and interest expense assuming that the company uses the effective interest method, a market interest rate of 6% and has a year-end of December 31, 2022.

Q: Oakley Company issued a $40,000, 10%, 10-year bond payable at 97 on January 1, 2024. Interest is…

A: If the issued Price is less than the face value , it will be treated as that Bonds are issued at…

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

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Q: On January 1, 2022, Kristopher Co. issued ten-year bonds with a face value of $6,000,000 and a…

A: The bonds are the financial instruments of the business. The bonds are reported as long term…

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: On February 1, 2021, Kailua Corp. issued $800,000, 20 year, 9% bonds, with interest payable…

A: Effective Interest Rate Method: Using this approach, the interest rate is maintained as the bond's…

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: On June 1, 2018, Ken Company sold $200,000 in long-term bonds for $175,520. The bonds have a stated…

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

Q: On January 1, 200C, the Gabriella Corporation issued $800,000, 8%, 10-year bonds at 98. Interest is…

A: working note: 1.The straight-line amortization of an Discount on bond payable will be $1600 ($16000…

Q: Pharoah Company issues $2.90 million, 5-year, 7% bonds at 104, with interest payable annually…

A: Given that the bonds has been issued at premium and it has to be amortised on straight line basis.…

Q: On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays…

A: Solution: Discount on issue of bond = Face value - Issue price = $946,000 - $889,240 = $56,760…

Q: Provide the journal entry that Bella will make to record the second bond interest payment on…

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

Q: On the first day of the fiscal year, a company issues a $8,500,000, 10%, 9-year bond that pays…

A: BOND Bond is a Financial Security which is generally Issued by the Corporations, Government &…

Q: On January 1, 2025, Flounder Company purchased 8% bonds having a maturity value of $200,000 for…

A: Debt investment seems to be a sort of investment within a corporation or project that involves…

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: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000…

A: Unamortized discount is the amount of discount on bonds payable which is not yet amorized as the…

Q: Volunteer Inc. issued bonds with a $600,000 face value, 8% interest rate, and a 4-year term on July…

A: Given Information: Bonds issued at face value       $600,000 Amount received…

Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid…

A:

Q: company issues $25,000,000, 7.8%, 20-year bonds to yield (market) 8% on January 1, 2020. Interest is…

A: Here the bonds having coupon rate 7.8% are issued to yield at 8%  Thus represents that bonds are…

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: Prepare journal entries for the following transactions.

A: Journal entries refers to the official book of a company which is used to record the day to day…

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: 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 June 30, 2020, the market interest rate is 6%. Burnaby Enterprises issues $525,000 of 7%, 17-year…

A: Bond carrying amount is calculated by adding the premium account balance in the previous carrying…

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: Legacy issues $580,000 of 8.0%, four-year bonds dated January 1, 2021, that pay interest…

A: To assist you in completing the table and journal entries, we need to follow these steps: 1. Journal…

Q: On the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond that pays…

A: Premium on issue of bonds = Cash received - Par value of bonds = $2,379,360 - $2,250,000 = $129,360

Q: Kingbird Ltd. issued a $778,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12%…

A: Issue price of bonds would be the present value of the interest annuity & maturity amount at…

Q: Pretzelmania, Incorporated, issues 7%, 15-year bonds with a face amount of $54,000 for $59,245 on…

A: The bonds are the financial instruments for the business that are used to raise money from the…

Q: Kingbind, Inc. issues $4.1 million, 10-year. 9% bonds at 102, with interest payable on January 1.…

A: Solution: Journal entries : The straight line method :

Q: Headland Inc. issued $150,000, 5-year bond on January 1, 2021 paying 5% interest on a semi-annual…

A: Bonds are the highly secured debt securities which are redeemable after a certain span of time.

Q: Pretzelmania, Incorporated, issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on…

A: Bonds Payable is documentary evidence given by the payer to the payee This act as a promissory note…

Q: On April 1, 2020, Quicke Mart issued $1,000,000, 9% bonds at par plus accrued interest dated January…

A: Bond is the debt security that investors uses to reduce the risk and increase stable return from…

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, 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: Kingbird Ltd. issued a $778,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12%…

A: An investment's real or actual interest rate, accounting for compounding over a certain time period,…

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…

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: Donner Corporation issues 4-year bonds with a face value of $5,000,000 and a stated rate of 5% on…

A: Interest Expenses are calculated on book value of bonds as per market rate of interest i.e. 6%

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: On January 1, 2021, Dominguez Company issues 7-year bonds with a face value of $10,000,000 and a…

A: Face Value of bond = $10,000,000 Annual interest rate = 4% Market interest rate = 5% Cash proceeds…

Q: BlueLtd. issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12%…

A:

Q: On January 1, 2018, Nebal Manufacturing Corporation issued $5,000,000, 10%, 6-year bonds dated…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: Calculate the value of the bond at the time of issuance, and record the initial journal entry.…

A: Bond valuation refers to a method which is used to compute the current value of future cash flow of…

Q: n November 1, 2020, your company issued $600,000 of 5 year 9% bonds when the market interest rate…

A: >Bonds are the source of finance for the businesses.>The company that wants fund, issue Bonds…

Q: niums and discounts on a straight line basis. Sneezy Ltd. has a January 31 year end. uired: 1.…

A: Accounting for Bond