Holly Industries, Inc. issued P6,000,000 of 8% debentures on May 1, 2019 and received cash totaling P5,323,577. The bonds pay interest semiannually on May 1 and November 1. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%. Calculate the amortized discount during the first year (5/1/19 through 4/30/20) these bonds were outstanding

Q: Marigold Industries, Inc. issued $ 12,600,000 of 8% debentures on May 1, 2020 and received cash…

A: An amortization schedule is a detailed table of periodic loan payments that shows the amount of…

Q: Standard Autoparts Inc. issued $170,000 of 8%, 10-year bonds at a price of 84 on January 31, 2020.…

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Q: Standard Autoparts Inc. issued $170,000 of 8%, 10-year bonds at a price of 84 on January 31, 2020.…

A: Journal entry is the primary step to record the transaction in the books of account. The maturity…

Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…

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Q: On January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds…

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Q: On January 1, 2019, Black Panther, Inc. issued P4,000,000 of 9% bonds, dated January 1 at 97.…

A: Determine Carrying amount of bonds payable Face value of bonds P4,000,000 Issued at 97% issued…

Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…

A: PREPARATION OF BOND DISCOUNT SCHEDULE

Q: Record the purchase of the bonds. 2. Prepare an investment interest income and discount amortization…

A: 1. Below is the Journal Entry for the Purchase of the Bonds Date  Particulars   Debit   Credit…

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Q: The interest expense on the income statement for the year ended December 31, 2021 is:

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Q: Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: Super Splash issues $910,000, 7% bonds on January 1, 2021, that mature in 10 years. The market…

A: Amortization Table It is a  table which shows the amount of principal and interest  of loan that…

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A: 1. Explain the amount of the premium on these bonds at issuance.

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A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200

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A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

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A: Interest payment = $2,460,000*8% Interest payment = $196,800

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A: Amortization schedule      Formula sheet of the above schedule

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A:

Q: Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…

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Q: On January 1, 2025, Shamrock Corporation issued $680,000 of 9% bonds, due in 8 years. The bonds were…

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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…