Face amount of Bonds 2,000,000 Acquisition cost on January 1, 2014 1,900,000 Discount on Bonds 100,000 Annual instalment on December 31, 2014 500,000 Date of bonds January 1, 2014 Interest payable semi-annually on June 30 and December 31 12% Prepare the entry for amortization of discount for 2015 if bond outstanding method is used.

Q: Temptation Vacations issues $58 million in bonds on January 1, 2021, that pay interest semiannually…

A: Original issue price of the bonds = Carrying Value of the bonds on January 1, 2021

Q: Temptation Vacations issues $58 million in bonds on January 1, 2021, that pay interest semiannually…

A: The stated annual interest rate, often known as SAR, is the return on an investment (ROI) presented…

Q: bonds for $102,458.71 to yield 12%. Prepare the journal entries to record: a. the sale of the bonds…

A: Bond Payable = $100,000  Interest = 13%  Semi Annual Interest   $ 100,000 × 13% × 6/12  = $6,500

Q: On the first day of the fiscal year, a company issues a $4,600,000, 6%, 10-year bond that pays…

A: Discount on bonds payable = face value of bonds - Issue price = $4600000-3702451 = $897,549

Q: On January 1, 2020, Drew Company issued $900,000, 5-year bonds for $828,000. The stated rate of…

A: Annual Cash Payment for interest = Face value of bonds x rate of interest x period = $900,000 x 9% =…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%,…

A: Bonds are debt securities issued by companies or governments to raise capital. A bond sold at a…

Q: Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan…

A: Number of semiannual periods = 4 years x 2 semiannual period per year Number of semiannual periods =…

Q: 15 Devito & Co. issued bonds on January 1, 2018. At January 1, 2023 the balances are as follows: A…

A: A) To record the interest payment, simply debit interest payable then credit cash for $1,200,000. B)…

Q: On January 1, 2019, stated rate on the bonds is 7% and interest is payable annually each December…

A: Carrying value at end of year = Carrying value at beginning of year + discount amortization discount…

Q: owe subject-Accounting On May 1, 2024, crane corp. issued 955,000 of 5-year, 7% bonds at $916,270.…

A: Each periodic payment on bonds is listed in a table called an amortization schedule over the course…

Q: Cornerstone Exercise 9-30 (Algorithmic) Debt Issued at a Premium (Straight Line) On January 1,…

A: Bond Years = 8 Issued Price = 672000 Par Value  = 600000 Premium on Bond Issued = 672000-600000 =…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,300,000, 10%,…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: la Vista Company issues $1,000,000, 10-year, 6% bonds at 92, with interest payable each January 1.

A: Bonds are issued for collecting resources and they are considered as a cheaper source of finance…

Q: Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued…

A: The effective interest method is a technique used for amortizing bonds to show the actual interest…

Q: Amortize premium by interest method Shunda Corporation wholesales parts to appliance manufacturers.…

A: The effective interest method is a technique used for amortizing bonds to show the actual interest…

Q: on january 1,2018 naperville corporation issued 2300,000 16% 5 year bonds wirh interest payable on…

A: Interest payment  = $2,300,000*16%*6/12 Interest payment  = $184,000

Q: On January 1. 2017 JWS Corporation issued $600,000 7% Bonds due in 10 years The bonds were issued…

A: Given information is: Face value of bonds = $600,000 Interest rate = 7% Period = 10 years

Q: On June 30, 2021, the market interest rate is 5%. Team Corporation issues $600,000 of 10%, 25-year…

A: Bonds are the securities which are issued by the entity for the purpose of raising funds from the…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $4,200,000, 10%,…

A:

Q: Bonds Issued at a Premium (Effective Interest) Cookie Dough Corporation issued $1,500,000 in 7%,…

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

Q: 1. Camden Co. issued $200,000 of 10%, 2 year bonds on January 1, 2018. The bonds pay interest on…

A: Solution A: Computation of bond price Table values are based on: n= 4     i= 6.00%…

Q: on Jan 1, 2024, Coney Island Entertainment issues a 1,500,000 of 6% bonds due in 10 years, interest…

A: Price of bond is present value of the coupon payments and present value of the par value of the bond…

Q: Discount amortization On the first day of the fiscal year, a company issues a $2,500,000, 8%, 5-year…

A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value at the…

Q: emptation Vacations issues $58 million in bonds on January 1, 2021, that pay interest semiannually…

A: Face value of bond is the amount at which the interest is paid over the life of bond.

Q: Clumber Company issues 1100 million 10-a6% bondhat 95, with interest payable each January 1 (a)…

A: Discount on Bonds: When the bond market costs lower than its face value then bonds are called at a…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,900,000, 8%,…

A: Discount amortization on bond: Bond discount amortization is the process of writing off a bond's…

Q: $750,000

A: Bonds payable refers to long-term debt basically issued by firms, governments, and hospitals.

Q: MacBride Enterprises sold $200,000 of bonds on December 31, 2018. A portion of the amortization…

A: Under effective interest method, interest is calculated on carrying value at the end of each…

Q: On January 1, 2021, Ayayai Ltd. paid $238,831.09 for 12% bonds of Variation Ltd. with a maturity…

A: As per the given information: Amount paid for 12% bonds- $ 238,831.09 Maturity value - $ 222,000…

Q: Question 17 - Journalize the following transactions CAB Corporation issues $9,000,000 of 5 year, 8%…

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

Q: On January 1, 2019 Global Filter Corp. issued a $768,000, 6%, four-year bond. Interest is to be paid…

A: Bonds can be issued at discount and it happens when the market interest rate is higher than the…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $1,100,000, 7%, 7-year…

A: To record financial accounting transaction system, ledger book entries are moved from the diaries…

Q: Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest…

A: Bonds are issued by governments and corporations when they want to raise money. By buying a bond,…

Q: Bond issue price and amortization On January 1, 2020, XYZ Co. issued 8-year bonds with a face value…

A: Interest is semiannually hence we consider cost of capital 2% instead of 4% for present value…

Q: Interest Payments and Interest Expense for Bonds (Straight Line) On January 1, 2020, Harrington…

A: GIVEN   Interest Payments and Interest Expense for Bonds (Straight Line) On January 1, 2020,…