Godwin Corporation retires its bonds at 109 on January 1, after the payment of interest. The face value of the bonds is $620,000. The carrying value of the bonds at retirement is $639,500. The entry to record the retirement will include a: A. credit of $36,300 to Gain on Retirement Bonds. B. credit of $36,300 to Loss on Retirement Bonds. C. debit of $55,800 to Premium on Bonds Payable. D. debit of $19,500 to Premium on Bonds Payable.

Q: Health First Ltd. retires its 8% bonds for $74,000 before its maturity date. Carrying value at the…

A: b. Bonds Payable $78,693     Gain on Bonds Retirement 4,693     Cash 74,000To record the retirement…

Q: What is the total amount of unamortized premium discount after its fourth interest payment? or

A: Effective interest rate is the interest rate which is actually interest rate which is applied on the…

Q: On the first day of the fiscal year, a company issues a $968,000, 8%, 10-year bond that pays…

A: Working Note: Total premium on Bonds = Issue value - Face value of the bonds = $1,016,400 - 968,000…

Q: Oriole Company retires its $540000 face value bonds at 102 on January 1, following the payment of…

A: The company is paying value of the bonds is $519,750  And bonds carrying value is  $540,000*102% =…

Q: Sheffield Company issued $648,000 of 10%, 20-year bonds on January 1, 2020, at 104. Interest is…

A: Proceeds from issue of bonds = Face value of bonds x issue price /100 = $648000*104/100 = $673920

Q: On January 1st, 2021, Lemon Corporation issued $800,000 of 20 year 10% bond at 104. Interest was…

A: Bonds are a form of loan or debt issued by the company, on which it has to make interest payments.…

Q: On January 1, 2021, a company issued $2,000,000, 10-year, 7% bonds, when the market rate was 8%.…

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

Q: equirements Without making joumal entries, compute the carrying amount of the bonds payable at July…

A: When the shares are issued at the value lower than the face value, it is said to be issued at…

Q: (a) Sandra Corporation purchased $780,000 of its bonds on June 30, 2020, value of the bonds on the…

A: a) Journal Entry     Debit$ Credit$ Bond payable 780,000   Loss on bond redemption (…

Q: On the first day of the fiscal year, a company issues a $967,000, 8%, 10-year bond that pays…

A: A journal entry is used to record a business transaction in an organization's accounting records. A…

Q: The Golden Company issues $539,000 of 7%, 10-year bonds at 104 on March 31, 2019. The bonds pay…

A: An interest-bearing bond is a type of debt security issued by a borrower, typically a corporation or…

Q: On February 1, 2020, Pat Weaver Inc. (PWI) issued 11%, $1,100,000 bonds for $1,400,000. PWI retired…

A: The bonds payable are the financial instruments for the business.  The bonds are issued to raise…

Q: Robin Corporation retires its $800000 face value bonds at 104 on January 1, following the payment of…

A: Redemtption value refers to the price which is to be considered while purchasing the security for…

Q: Jen Corporation retires its P 500,000 face value bonds at 105 on January 1, following the payment of…

A: Bonds when redeemed at more than the carrying value of the bonds they record loss .

Q: Godwin corporation retired its bonds at 105 on january 1 after the payment of interest. The face…

A: Bond retirement refers to the cancellation or repurchase of bonds that were earlier issued. The…

Q: Marigold, Inc., purchased $372,000 of its bonds at 95 on June 30, 2020, and immediately retired…

A: Bond's Payable = $372,000 Discount On Bond's Payable = $372,000 — $360,000 = $12,000   Cash =…

Q: Sheffield Company issued $648,000 of 10%, 20-year bonds on January 1, 2020, at 104. Interest is…

A: Introduction: On January 1, 2020, Sheffield Company issued $648,000 of 10 percent, 20-year bonds at…

Q: Vaughn Manufacturing retires its bonds at 105 on January 1, following the payment of annual…

A: In the current case, the company holds bonds with a face value of $720,000. The carrying value of a…

Q: Sarasota Corp. retires its $928000 face value bonds at 105 on January 1, following the payment of…

A: Journal entry is a record of financial transaction in the books of accounts of a business. It has a…

Q: On January​ 1, 2018​, Technicians Credit Union, ​(TCU​), issued 8%​, 20​-year bonds payable with a…

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

Q: Josselle Corporation retires its bonds at 106 on January 1, after the payment of interest.The face…

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

Q: On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays…

A: Working note:   Premium on issue $1,004,900 – 957,000 $47,900 Semi-annual period 10×2…

Q: Oceanview Magazine issued $690,000 of​ 15-year, 6% callable bonds payable on July​ 31, 2024​, at 98.…

A: Bonds are high - security debt instruments that is used by entity's to raise funds and fulfill…

Q: Patricia Johnson Company issued $420,00

A: Proceeds from issue of bonds = Face value of bonds x issue price /100= $420,000*102/100= $428,400

Q: Sunland Electric sold $5,615,000, 10%, 10-year bonds on January 1, 2020. The bonds were dated…

A: Cash received on issue of bonds = $5,615,000*96/100 = $5,390,400 Discount on Bonds Payable = Face…

Q: Seaview Company issued $200,000 of 15-year, 9% callable bonds payable on July 31, 2025, at 97. On…

A: Bond retirement refers to meeting the obligation related to bonds. It means bonds are retired by…

Q: On July 1, 2018, Miniature Company has bonds with balances as shown below.     Bonds Payable…

A: Par value of Bonds payable: $65,000 Bonds with a par value of $65,000 are carrying a discount of…

Q: Sheridan Corporation retires its $540000 face value bonds at 104 on January 1, following the payment…

A: Given information,The Bonds Payable account represents the initial face value of the bonds issued by…

Q: January 1. Crane Company uses the straight-line method of amortization for bond premium or discount.…

A: Journal is the book of original entry in which, after following the rules of debit and credit,all…

Q: A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current…

A: During retirement of a bond, if its book value is more than the cash paid to the bond holders it…

Q: Required: Using the amortization schedule provided above, record the entry to retire the bonds on…

A: If bonds are retired before maturity, there may be gain or loss on retirement. If the bond is…

Q: On January 1, 2018, Educators Credit Union issued 7%, 20-year bonds payable with a face value of…

A: Journal entry is a record of financial transactions in the books of accounts of a business. It…

Q: On January 1, 2019, Violet Corporation retired P5, 000,000 of bonds at P99. At the time of…

A: Given that, on January 1, 2019 Violet corporation bonds retired = P5000000 Total number of bonds =…

Q: Eaton Company issued $600,000 of eight percent, 20‑year bonds at 106 on January 1, 2013. Interest is…

A: Issue Price of Bonds: 600,000 x 106/100 = $636,000 Face value of Bonds = $600,000 Premium on Bonds =…

Q: On January​ 1,2018​, Technicians Credit Union, ​(TCU​), issued 8%​, 20​-year bonds payable with face…

A: Premium on bonds payable = 900,000 * 8% = $72,000 Premium on bonds payable on June​ 30, 2018…

Q: On July 1, 2019, Montana Company has bonds with balances as shown below.                  Bonds…

A: Carrying value of bonds = Balance in Bonds Payable - Balance in Discount on Bonds Payable Gain or…

Q: On January 1, 2020, Henderson Corporation redeemed $500,000 of bonds at 99. At the time of…

A: Calculate the amount of cash paid to redeem the bond.