Five thousand bonds with a face value of $2000 each, are sold at 89. The entry to record the issuance is
Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 each for $104,000. The…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On the first day of the current fiscal year, $200,000 of 5-year, 10% bonds, with interest payable…
A: Discount on Bonds payable = Face value of bonds - issue price of bonds = $200,000 - $192,462 =…
Q: Discount-Mart issues $12 million in bonds on January 1, 2024. The bonds have a nine-year term and…
A: Bonds are the securities which are issued by the entities in order to raise capital for the…
Q: The Reagan Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 92. The…
A: JOURNAL ENTRIES Journal Entry is the First stage of Accounting Process. Journal Entry is the…
Q: Wildhorse Corporation issued $300,000 of 10-year bonds at a discount. Prior to maturity, when the…
A: BOND Bond is a Financial Security which is generally Issued by the Corporations, Government &…
Q: Five thousand bonds with a face value of $2000 each, are sold at 106. The entry to record the…
A: When bonds are issued at premium the difference between face value and issue proceeds is…
Q: 6400 bonds with a face value of $1000 each, are sold at 105. The entry to record the issuance is…
A: Bonds Payable are liabilities that are issued by the borrower to the payee. It is a promissory note…
Q: Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000. If…
A: Redemption of Bonds: The process of repaying the sale amount of bonds to bondholders at the time of…
Q: The Hayden Corporation issues 1,000, 10-year, 8%, $2,000 bonds dated January 1 at 92. The journal…
A: Journal: Recording of a business transaction in a chronological order.
Q: $760,648 763,494 766,538 769,796 $40,648 43,494 46,538 49,796 10,907,050 10,950,544 10,997,082…
A: Market rate is the on going interest rate of the bond in a free market.
Q: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
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: If 70 $1000 bonds with a carrying value of $84000 are redeemed for $79000, the journal entry to…
A: The bonds are issued at the premium when market rate is lower than the coupon rate of bonds payable.…
Q: Bonds Payable has a balance of $802,000 and Discount on Bonds Payable has a balance of $9,624. If…
A: The objective of this question is to calculate the gain or loss on redemption of bonds. The company…
Q: A company issues bonds with a face value of $5,000,000 and receives cash proceeds of $5,500,000 from…
A: Journal entries are prepared to record the financial and non financial transactions of the business…
Q: On March 1, Sullivan Inc. issued $700,000 of 10-year, 11% bonds at an effective interest rate of…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: Discount-Mart Issues $16 million in bonds on January 1, 2024. The bonds have a seven-year term and…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable. The…
Q: Make a journal entry to record the issuance of a bond with a face amount of $1,000,000 sold at 98.
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: Discount-Mart issues $15 million in bonds on January 1, 2024. The bonds have a ten-year term and pay…
A: Cost which is incurred for funds borrowed by entity is referred to as interest expense. To put it…
Q: The balance in the Bonds Payable account is a credit of $67,000. The balance in the Discount on…
A: Bond's carrying amount = Bonds payable - Discount on bond payables…
Q: The first day of the fiscal year, a company issues a $700,000, 6%, 10-year bond that pays semiannual…
A: Bonds are issued by the company because it is it cheaper source of finance. It is because tax…
Q: Riverbed Corp issues 940, 10-year, 8%, $1000 bonds dated January 1, 2020, at 96. The journal entry…
A: Bonds are recognized as a financial instrument used to raise finance for the organization. It is…
Q: The Hayden Corporation issues 1,000, 10-year, 8%, $2,000 bonds dated January 1 at 92. The journal…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: A $1,600,000 bond issue on which there is an unamortized premium of $70,500 is redeemed for…
A: The company shares, bonds, debentures, etc., will be issued to meet the capital requirement of the…
Q: balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing…
A: Answer : Bonds payable balance = $1,000,000 Discount on bonds payable = $10,000
Q: Blue Spruce Corp. issues 6400, 10-year, 8%, $1000 bonds dated January 1, 2017, at 101. The journal…
A: Answer is option a) credit to Bonds Payable for $6400000.
Q: Federer Corporation issued $540,000 in bonds for $498,600. The bonds had a stated rate of 12% and…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: Bonds Payable has a balance of $1,005,000 and Discount on Bonds Payable has a balance of $10,050. If…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: A$1,000,000 bond is issued on 7/1. The transaction is recorded on 7/1 by the UCF Bicycle Vending…
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: Cucumber Electric sold $3,300,00, 8%, 10-year bonds on January 1, 2022. The bonds were dated January…
A: Under straight line method, the premium or discount is amortized with equal amounts. The bonds are…
Q: On the first day of the fiscal year, a company issues a $4,200,000, 10%, five-year bond that pays…
A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.…
Q: On January 1, Year 1, Bluestone Company issued bonds with a face value of $500,000 at 90. How will…
A: Bonds are usually issued by the company as to raise short term finance. These are basically issued…
Q: Wildhorse Co. sold $3,310,000, 9%, 10-year bonds on January 1, 2025. The bonds were dated January 1,…
A: A bond is a borrowing security issued by a company to raise funds from the market by making an…
Q: ive thousand bonds with a face value of $2000 each, are sold at 93. The entry to record the issuance…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: Superior drive ins Ltd borrowed money by issuing $5500,000 of 6% bonds payable at 93.5 on July…
A: solution : given : face value of bond =$5500,000 coupon rate =6% issue price…
Q: Five thousand bonds with a face value of $1000 each, are sold at 91. The entry to record the…
A: Bond interest is a monthly payment provided to bondholders by a bond issuer as compensation for…
Q: Journalize the redemption of the bonds
A: Redemption of bond means discharging the liability of bond by paying off it in cash or cash…
Q: On January 1, 2020, Marigold Corp. issued $5100000, 10-year, 4% bonds at 102. Interest is payable…
A: When a bond is issued at premium, the amount received excess of fair value should be recorded under…
Q: Smith Corporation issues $1,800,000, 10-year, 9% bonds payable at a price of 98. The journal entry…
A: The bonds payable are reported as the long-term liabilities. The bonds are issued to raise the money…
Q: ABC Company issued $20,000 of 5-year bonds, stated rate 10%, effective rate 8%, interest paid…
A: The journal entries are prepared to record the transactions on regular basis. The bonds are issued…
Q: A Redemption of bonds payable A $1,500,000 bond issue on which there is an unaumortized discount of…
A: All the transactions of the company that are happened during the year will be recorded first in the…
Q: Required journal entries Total cash payment = 500000*10%*1/2 = $25, 000 Discount on bonds payable =…
A: Journal entries refers to the entries which are made at the end of the period or year and it records…
Q: A company issues bonds with a $100,000 par value, an 8% annual contract rate, semiannual interest…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Five thousand bonds with a face value of $1000 each, are sold at 109. The entry to record the…
A: In this numerical has covered the concept of Bonds Payable.
Q: On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds…
A: Interest expense = Interest on Bonds + Discount on bonds payable amortized = ($400,000 x 7% x 6/12)…
Q: The Reagan Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 92. The…
A: INTRODUCTION: Bonds are tradable assets that are securitized versions of corporate debt issued by…
Five thousand bonds with a face value of $2000 each, are sold at 89. The entry to record the issuance is
Cash | 8900000 | |
Premium on Bonds Payable | 1100000 | |
Bonds Payable | 10000000 |
Cash | 8900000 | |
Bonds Payable | 8900000 |
Cash | 10000000 | |
Discount on Bonds Payable | 1100000 | |
Bonds Payable | 8900000 |
Cash | 8900000 | |
Discount on Bonds Payable | 1100000 | |
Bonds Payable | 10000000 |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2021 06/30/2021 $950,000 12/31/2021 950,000 06/30/2022 950,000 12/31/2022 950,000 Cash Paid Multiple Choice 5% 12%. Interest Expense $1,009,243 1,012,797 1,016,565 1,020,559 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) 10%. Increase in Carrying Value $59,243 62,797 66,565 70,559 Carrying Value $16,820,715 16,879,958 16,942,755 17,009,320 17,079,879What would be the required journal entry on the date of issuance if a company issues $100,000 five-year, 10% bond for $103,769 and the interest is to be paid semiannually? debit cash, $100,000, and credit bond payable $100,000 debit cash $103,769, and credit bond payable $100,000 and credit premium on bonds payable $3,769 debit bonds payable $103,769 and debit discount on bonds payable $3,769, and credit cash $100,000 debit cash $103,769 and debit discount on bonds payable $3,769, and credit bonds payable $100,0005. Federer Corporation issued $540,000 in bonds for $498,600. The bonds had a stated rate of 12% and pay interest quarterly. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For accounts having similar accounting treatment (DR or CR), you are to record accounts in the same order as shown in the textbook. You must enter the account names exactly as written above and all dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345). What is the journal entry to record the issuance of the bonds? DR DR/CR ? CR What is the journal entry to record the first interest payment? (Note: Do not consider the premium or discount.) DR CR
- 1. Downing Company issues $1,000,000, 12%, 10-year bonds on January 1, 2020. The bonds pay interest quarterly on March 31, June 30, September 30 and December 31. The bonds are issued to yield 8%. a) Calculate the issue price of the bonds in dollars b) Calculate the issue price of the bonds as a percent c) Make the journal entry to record the sale of the bondA $485,000 bond issue on which there is an unamortized discount of $35,000 is redeemed for $470,000. Required: Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSGeneral Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds EXPENSES…What is the correct choice? A $200,000 bond issue with a carrying value of $194,000 is called at 101 and retired. The entry to record the retirement of bonds is: a. Bonds Payable 200,000 Gain on Retirement of Bonds 6,000 Cash 194,000 b. Bonds Payable 200,000 Cash 200,000 c. Bonds Payable 200,000 Loss on Retirement of Bonds 8,000 Unamortised Bond Discount 6,000 Cash 202,000 d. Bonds Payable 194,000 Loss on Retirement of Bonds 8,000 Cash…
- A $1,000,000 bond issue on which there is an unamortized premium of $71,600 is redeemed for $1,051,500. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331…You found the following ledger account balances of ABC Corporation: 12% Bonds Payable, due March 31, 2020 10/1/17 3,060,000 3/31/15 10,000,000 Premium on Bonds Payable 3/31/15 772,144 Bond Interest Expense 3/31/17 600,000 9/30/17 600,000 The bonds pay interest semiannually on March 31 and September 30. The bonds were issued on March 31 at a price yield 10%. On October 1, 2017, P3,000,000 of the bonds were redeemed for permanent cancellation at 102.Five thousand bonds with a face value of $2000 each, are sold at 112. The entry to record the issuance is Cash 11200000 Bonds Payable 11200000 Cash 11200000 Discount on Bonds Payable 1200000 Bonds Payable 10000000 Cash 11200000 Premium on Bonds Payable 1200000 Bonds Payable 10000000 Cash 10000000 Premium on Bonds Payable 1200000 Bonds Payable 11200000
- Five thousand bonds with a face value of $1000 each, are sold at 107. The entry to record the issuance isDiscount-Mart issues $14 million in bonds on January 1, 2024. The bonds have a nine-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2024 06/30/2024 12/31/2024 06/30/2025 12/31/2025 Cash Paid $840,000 840,000 840,000 840,000 Interest Expense $881,421 884,320 887,423 890,742 Increase in Carrying Value $41,421 44,320 47,423 50,742 Carrying Value $12,591,728 12,633,149 12,677,469 12,724,892 12,775,634 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.)If the bonds payable account has a balance of $900,000 and the discount on bonds payable account has a balance of $72,000, what is the carrying amount of bonds? A. $828,000 B. $900,000 C. $972,000 D. $580,000