EWO Enterprises issues $4,500,000 of bonds payable.Required:Prepare the necessary journal entries to record the issuance of the bonds assuming the bonds were issued (a) at par, (b) at 104.5, and (c) at 99.

EWO Enterprises issues $4,500,000 of bonds payable.Required:Prepare the necessary journal entries to record the issuance of the bonds assuming the bonds were issued (a) at par, (b) at 104.5, and (c) at 99.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 8EB: Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received...

See similar textbooks

Related questions

Q: A $540,000 bond issue on which there is an unamortized discount of $45,000 is redeemed for $446,000.…

A: When bonds were issued on discount, company receives the face value less discount amount

Q: Oriole Company issued $750,000, 7%, 10-year bonds on December 31, 2021, for $680,000. Interest is…

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

Q: Amwaj Company issued 129, 10-year bonds with a par value of BD 2,000,000 on January 1, 2018.…

A: Journal Entries are primary record maintained by an entity for the occurrence or non-occurrence of…

Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, five-year bond that pays…

A: Bonds Bond is a long-term financial instrument issued by a company for which the company pays…

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: Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the…

A: The objective of the question is to prepare the company's journal entries for the issuance of bonds…

Q: The situations presented here are independent of each other. For each situation, prepare the…

A: given that, face value of bonds redeemed = $168000 rate if interest = 14.5% carrying value of the…

Q: Complete the following: (a) Prepare the journal entry to issue $100,000 bonds that sold for…

A: Lets undertand the basics. Bonds can be issued at par value, at discount or at premium. If bond is…

Q: On January 1, 2018, Technicians Credit Union (TCU) issued 5%, 20-year bonds payable with face value…

A: Premium on Bonds Payable = Face value of Bonds - Issue price = $100000 - $100000*106% = $6000

Q: 2. Swisher Company issued $2,000,000 of bonds on January 1, 2020. Instructions a. Prepare the…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: On April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including…

A: >Bonds Payable are the source of finance for the companies. >The bondholders are…

Q: On April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including…

A: A per PFRS 9 Financial instruments an issue of bond is a financial liability which can be accounted…

Q: The situations presented here are independent of each other. For each situation, prepare the…

A: given that, face value of bonds redeemed = $136000 interest on bonds = 9% carrying value of bonds…

Q: payment of a call premium of $10,000. The bonds D,000. We call these bonds prior to maturity on…

A: These are the accounting transactions that are having a monetary impact on the financial statement…

Q: first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays semiannual…

A: Solution: When the face value of bond is higher than issue price of bonds then that represents that…

Q: On August 1, 2022, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is…

A: When the bonds are issued then cash will receive so cash account would be debited and bond payable…

Q: On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays…

A: Journal entry A journal entry is used to record a business transaction within the accounting…

Q: On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

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: Anne Corp. issued $600,000, 5% bonds.Required:Prepare the necessary journal entries to record the…

A: Sno Account Titles and Explanation Debit Credit A Cash $ 600,000 5% Bonds Payable $…

Q: Hawar Company issued $400,000 of bonds on January 1, 2020. Required: Prepare the journal entry to…

A: Journal entry - It refers to the process where the business transactions are recorded in the books…

Q: Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest…

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

Q: Blanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.)…

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

Q: Crane Company issued $1,730,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record…

A: When bonds are issued at discount then we will debit "Discount on bonds payable" account is debited.…

Q: Cullumber Corporation issues $430,000 of bonds for $447,200. (a) Prepare the journal entry to record…

A: Lets understand the basics.Journal entry is required to make to record event and transaction in…

Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…

A: Given: Bond payable $800,000; Unamortized premium $57,000; and proceeds from redemption of bond is…

Q: A $1,200,000 bond issue on which there is an unamortized premium of $63,956 is redeemed for…

A: Journalize the redemption of the bonds.

Q: Blue Spruce Corp. issues $310,000 of bonds for $325,500. Prepare the journal entry to record the…

A: Bonds issue price = $325,500 Bonds face value = $310,000 Premium on bonds issue = Bonds issue price…

Q: Anne Corp. issued $600,000, 5% bonds. Required: Prepare the necessary journal entries to record the…

A: Bonds:Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at…

Q: On September 31, 2021, an entity issues bonds with face amount of P8,000,000 for P9,105, 022…

A: Cash proceeds P9,105,022 Accrued Interest (P8,000,000 *9 /12 * 9%) (P540,000) Face Value of…

Q: Ivanhoe Corporation issues $440,000 of bonds for $462,000. Prepare the journal entry to record the…

A: Solution.. Issue price = $462,000 Par value = $440,000 Premium on bonds = ?

Q: Mission Furniture issued $500,000 in bonds payable at par. The journal entry to record asemiannual…

A: Correct answer is d Interest payment on bond is recorded as follows. Interest expenses Dr. Cash…

Q: 1. Prepare the journal entry to record the sale of the bonds at par. Record issuance of bonds at par…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Question

EWO Enterprises issues $4,500,000 of bonds payable.
Required:
Prepare the necessary journal entries to record the issuance of the bonds assuming the bonds were issued (a) at par, (b) at 104.5, and (c) at 99.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Willoughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received $105,000. What is the journal entry to record the sale of the bonds?
Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received $45,000. What is the journal entry to record the sale of the bonds?
Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal entry to record this transaction includes ________. A. a credit to Bonds Payable for $102,500 B. a credit to cash for $102,500 C. a debit to cash for $100,000 D. a credit to Premium on Bonds Payable for $2,500
Anne Corp. issued $600,000, 5% bonds. Required: Prepare the necessary journal entries to record the issuance of these bonds assuming the bonds were issued at 92
Anne Corp. issued $600,000, 5% bonds.Required:Prepare the necessary journal entries to record the issuance of these bonds assuming the bondswere issued (a) at par, (b) at 102, and (c) at 92.
Blanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.) Issues $700,000 bonds at 102. c.) Issues $200,000 bonds at 100. Required: 1.) Prepare the journal entries to record the bond issuances under of the independent situations.
An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.
On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance of the bonds will include O a credit to Bonds Payable for $104081500. a credit to Interest Expense for $3031500. O a credit to Premium on Bonds Payable for $3031500. O a debit to Cash for $101050000.
Kartel is planning to issue 360 bonds, each having a face amount of $1,000. Required: 1. Prepare the journal entry to record the sale of the bonds at par. Record issuance of bonds at par 2. Prepare the journal entry to record the sale of the bonds at a premium of $34,000. Record issuance of bonds at premium 3. Prepare the journal entry to record the sale of the bonds at a discount of $41,000. Record issuance of bonds at discount 4. Conceptual Connection: Assuming the stated rate is identical for the previous three scenarios, in which scenario is the market rate of interest (yield) highest? The bonds sell at
2. Swisher Company issued $2,000,000 of bonds on January 1, 2020. Instructions a. Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 98, and (3) 103. b. Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100. c. Prepare the journal entry to record the redemption of the bonds before maturity at 98. Assume the balance in Premium on Bonds Payable is $9,000.
On April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including accrued interest. The bonds are dated January 1, 20x1 and pay annual interest of 14% every December 31. The effective interest rate is 12%. Requirements: a. Compute for the initial carrying amount of the bonds. b. Provide the entry on April 1, 20x1 to record the issuance of the bonds.
On January 1, 2018, Technicians Credit Union (TCU) issued 5%, 20-year bonds payable with face value of $100,000. These bonds pay interest on June 30 and December 31. The issue price of the bonds is 106. Journalize the following bond transactions: a (Click the icon to view the bond transactions.) (Assume bonds payable are amortized using the straight-line amortization method. Record debits first, then credits. Select explanations on the last line of the journal entry. Round your answers to the nearest whole dollar.) - X a. More Info a. Issuance of the bonds on January 1, 2018. b. Payment of interest and amortization on June 30, 2018. c. Payment of interest and amortization on December 31, 2018. d. Retirement of the bond at maturity on December 31, 2037, assuming the last interest payment has already been recorded. Print Done