Enviro Company issues 10%, 10-year bonds with a par value of $300,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 12%, which implies a selling price of 88 1/2. Prepare the journal entry for the issuance of the bonds for cash on January 1. View transaction list
Q: Wookie Company issues 9% , five-year bonds, on January 1 of this year, with a par value of $109,000…
A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…
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: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,400 million on…
A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
Q: russels Enterprises issues bonds at par dated January 1, 2021, that have a $2,500,000 par value,…
A: Bonds payable are one of the sources of finance and are shown as a liability. If the interest rate…
Q: Super Splash issues $870,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…
A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…
Q: Brussels Enterprises Issues bonds at par dated January 12019, that have a \$3,400,000 par value,…
A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…
Q: Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $3,400,000 par value,…
A: When the bonds are issued at par, then there shall be no premium or discount on bonds payable.
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…
Q: On January of the current year, Banek Inc issued $350,000 of 8% nine year bonds for $309,086, which…
A: Bonds payable is one of the liability being incurred in business. It can be short term bonds or long…
Q: On January 1, Remington Corp issued $500,000 of 15-year, 10% bonds payable, yielding an effective…
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: Garcia Company issues 11.0%, 15-year bonds with a par value of $440,00o0 and semiannual interest…
A: Journal entry: It is the duty of the accountant to keep the record and summarize the business…
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 January 1, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $3,500,000. The…
A: Bonds are a form of loan or debt that is being issued by the company, on which regular interest…
Q: Garcia Company issues 10.5%, 15-year bonds with a par value of $430,000 and semiannual interest…
A: Issuance of Bond: It is possible for businesses to raise funds by issuing bonds. In the case of…
Q: On June 30, Power Company issues 5%, five-year bonds payable with at face value of $60,000. The…
A: Journal entry : It is prepared to record the financial and non financial transaction of the business…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: Disclaimer: "Since you have asked multiple questions, we will solve the first three questions for…
Q: Paulson Company issues 7%, four-year bonds, on January 1 of this year, with a par value of $109,000…
A: Journal entry is the primary step to record the transaction in the books of accounts. Interest…
Q: On January 1, the first day of the fiscal year, a company issues a $2,400,000, 4%, five-year bond…
A: Annual Interest=2,400,000×4%=96,000
Q: pany issues four-year bonds with a $105,000 par value on January 1, 2021, at a price of $100,950.…
A: Bonds are debt instruments which are issued to raise money from investors. Bonds may be issued at…
Q: Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…
A: Given: Company’s issues = 8% Life of bond = 10 years Par value = $ 250,000 Annual market rate = 5 %…
Q: On January 1, the first day of the fiscal year, a company issues an $1,350,000, 11%, five-year bond…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $64,008 on January 1,…
A: 1.When bonds are issued at a price less than the face value, they are said to be issued at discount.…
Q: Garcia Company issues 12.0%, 15-year bonds with a par value of $460,000 and semiannual interest…
A: A bond is a loan taken by a company on which a specific percentage of interest has to be paid over a…
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: Enviro Company issues 8%, 10-year bonds with a par value of $340,000 and semiannual interest…
A: Journal is the primary book where transactions of a company are originally recorded. Further, a…
Q: Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2021, that pay interest…
A: Hillside - Bond Issuance and Amortization1. Journal Entry to Record Bonds' Issuance (January 1,…
Q: Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The…
A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…
Q: On January 1, Parson Freight Company issues 9.0 %, 10-year bonds with a par value of $3,900,000. The…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $2,500,000 par value,…
A: Bonds are the securities issued by the entity for the purpose of raising funds from the market.…
Q: Garcia Company issues 9.0%, 15-year bonds with a par value of $400,000 and semiannual interest…
A: A journal entry records a business transaction in the accounting system of an organisation. Journal…
Q: A company issued 10%, 10-year bonds with a par value of $1,150,000 on January 1, at a selling price…
A: Bonds are presented at the carrying value in the balance sheet. Bond selling price and face value…
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: Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on…
A: When the bonds are issued at more than their par value it means that it has been issued at the…
Q: Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $2,600,000 par value,…
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, 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: On January 1, a company issues 9%, five-year bonds with a par value of $109,000 and semiannual…
A: A journal entry records a business transaction in the accounting system of a company. Journal…
Q: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest…
A: The bonds are recorded as long term liabilities in the books. The bonds are issued at premium when…
Q: On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $4,300,000. The…
A: Bonds payable is one of the liability being incurred in business. There can be long term bonds or…
Q: Enviro Company issues 10%, 10-year bonds with a par value of $240,000 and semiannual interest…
A: Introduction: When company needs funds for its business, it borrows money by issuing bonds. Company…
Q: Hillside issues $1,700,000 of 8%, 15-year bonds dated January 1, 2021, that pay interest…
A: Bonds payable arise when a company issues bonds to investors to borrow money to meet any business…
Q: Enviro Company issues 8%, 10-year bonds with a par value of $310,000 and semiannual interest…
A: Journal entry is the primary step to record the transaction in the books of accounts. The cash if…
Q: On January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond…
A: Total premium on bonds issue = Issue value - Face value of bonds = $2,379,360 - $2,250,000 =…
Q: National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January…
A: 1.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On May 1, Holiday Company issued $200,000, 9%, 10-year bonds for $213,591 when the market rate was 8%. Prepare the general journal entry for the first semiannual interest payment and bond premium amortization on November 1, using the effective interest method. Round all amounts to the nearest dollar.Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $540,871. The annual market rate is 7.5% on the issue date. Required: 1. Compute the total bond interest expense over the bonds' life. 2. Prepare an effective interest amortization table for the bonds' life. 3. Prepare the journal entries to record the first two interest payments. Please need answer for all with working please answer do not waste time or question by holding attempt if you can otherwise skipSnap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000 andsemiannual interest payments. Use the following bond amortization table and prepare journal entries torecord (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the secondinterest payment on December 31.Semiannual Period-End Unamortized Discount Carrying Value(0) January 1, issuance . $7,360 $92,640(1) June 30, first payment . . . . . . . . . . . . 6,624 93,376(2) December 31, second payment 5,888 94,112
- Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. Semiannual Period-End Unamortized Discount Carrying Value (0) January 1, issuance $13,466 $186,534 (1) June 30, first payment 11,782 188,218 (2) December 31, second payment . 10,098 189,902Garcia Company issues 13.5%, 15-year bonds with a par value of $490,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 11.5%, which implies a selling price of 112 1/4. Prepare the journal entry for the issuance of these bonds for cash on January 1. View transaction list Journal entry worksheet 1 Record the issue of bonds with a par value of $490,000 at a selling price of 112 1/4. Note: Enter debits before credits. Date January 01 Record entry General Journal Clear entry Debit Credit View general journalA company issues 8%, two-year bonds on December 31, 2018, with a par value of $10,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 96.0% or $9,600. (a) Prepare an amortization table for these bonds; use the straight-line method to amortize the discount. Then prepare journal entries to record; (b) The issuance of bonds on December 31, 2018; (c) The first interest payments on each June 30 and December 31; and (d) The maturity of the bond on December 31, 2020.
- Garcia Company issues 8.0%, 15-year bonds with a par value of $290,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 6.0%, which implies a selling price of 114 3/4. Prepare the journal entry for the issuance of these bonds for cash on January 1. View transaction list Journal entry worksheet < Record the issue of bonds with a par value of $290,000 at a selling price of 114 3/4. Note: Enter debits before credits. Date January 01 Record entry General Journal Clear entry Debit Credit He View general JournalOn January 1, Year 1, Price Company issued $291,000 of five-year, 5 percent bonds at 98. Interest is payable annually on December 31. The discount is amortized using the straight-line method. Required Prepare the journal entries to record the bond transactions for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 > Record the entry for issuance of bonds. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journalPretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate computations and final answers to the nearest whole dollar amount.)
- Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $90,000 and semiannual interest payments. Semiannual Period-End (0) January 1, issuance (1) June 30, first payment Carrying Value $ 83,467 84,284 (2) December 31, second payment 85,101 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30.. (c) The second interest payment on December 31. View transaction list Journal entry worksheet < 1 2 3 Date January 01 Record the issuance of the bonds on January 1. Note: Enter debits before credits. Unamortized Discount $ 6,533 5,716 4,899 General Journal Debit CreditHillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required 1. Prepare the January 1 journal entry to record the bonds' issuance. 2. For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. Check (3) $4,143,552 3. Determine the total bond interest expense to be recognized over the bonds' life. (4) 12/31/2022 carrying value, $3,528,920 4. Prepare the first two years of a straight-line amortization table like Exhibit 14.7. 5. Prepare the journal entries to record the first two interest payments.Quatro issues bonds dated January 1, 2021, with a par value of $900,000. The bonds' annual contract rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 10%, and there was bonds Issuance costs of $29, 850 1. What is the price of these bonds at issuance? 2. Prepare the journal entries to record how much total bond interest expense will be recognized over the life of these bonds and the Bond issuance costs 3 Prepare an amortization table for these bonds using the effective interest method.