irm issues a $10,000, 5-year, 10% bond with interest payable annually suance, market rates are 9%. Journalize the issuance of the bond. Debit Credit 10000

Q: Allegiant issues 6%, 20-year bonds with a par value of $2,000,000 and semiannual interest payments.…

A: YTM (yield to maturity) is the total return anticipated on a bond if it is held until its maturity…

Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…

A: Excess of issue price over the face value of the bond is Premium on Bonds Payable.   In the given…

Q: S14-6 Journalizing bond transactions Power Company issued a $1,000,000, 5%, 5-vear bond payable at…

A: Bonds are a form of debt or loan taken by the company, on which company has to make regular interest…

Q: BZ Corp issues 5.0%, 10-year bonds with a total face amount of $1,000,000. The market interest rate…

A: The bond valuation refers to determining the bond's current price, Yield To Maturity, Current yield,…

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: Analyzing and journalizing bond transactions On January 1, 2018, Educators Credit Union (ECU) issued…

A: Bond financing is an instrument for borrowing the funds. The borrower has to pay a fix amount of…

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: On the first day of the fiscal year, a company issues a $8,500,000, 10%, 9-year bond that pays…

A: BOND Bond is a Financial Security which is generally Issued by the Corporations, Government &…

Q: Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a…

A: A bond is a loan the investors give to the company or a business. The company repays the bond with…

Q: Karson Company. issues 10-year bonds maturity, face value of $200,000 and 8% interest rate. If the…

A: The bonds are issued at discount or premium depending on the market interest rate.

Q: Blossom Company issues $3.2 million, 10-year, 9% bonds at 96, with interest payable on December 31.…

A: 1. Date Account Titles and Explanation Debit Credit Jan. 1 Cash ($3,200,000*96/100)…

Q: Hillside Excursions issues bonds due in 15 years with a stated interest rate of 9% and a face value…

A: The current interest rate is compared to the interest rate that is listed on the bond to figure out…

Q: (A *D) (H - 1) (K* E) Jan 1 2019 June 30, 2019 December 31, 2019 June 30, 2020 December 31, 2020…

A: Valuation of Bond  Amortisation of Bond  Journal Entries related to the Bond

Q: Post Company issues a 6 year, 6%, $200,000 bond at par on July 31. The journal entry would be:…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

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: On the first day of the fiscal year, a company issues a $2,050,000, 9%, five-year bond that pays…

A: Bond: It is  long-term financial instrument issued by a company. Interest is paid to bond holders…

Q: Moore Corp. issued 5.5​% two​-year bonds payable with a face amount of $60,000 when the market…

A: Bonds Payable - Bonds are the obligation that required to be paid at fixed duration of time. It…

Q: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…

A: Journal entries are used to record entries in chronological order for a business.

Q: Issuing Bonds at a Discount On January 1, the first day of the fiscal year, a company issues a…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays…

A:

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,700,000, 6%,…

A: Journal entry to record the issuance of bonds: Date Account Titles Debit ($) Credit ($) xxx…

Q: s Allegiant issues 7%, 20-year bonds with a par value of $2,000,000 and semiannual interest…

A:

Q: Margaret Company provided the following information in relation to the issuance of bonds at the…

A:

Q: Instructions On January 1, the first day of the fiscal year, a company issues a $2,050,000, 9% ,…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: On the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays…

A: Since it is a semiannual bond interest will be paid in 10 installments  ( 5 years × 2 )  The bond is…

Q: An 8%, P1,000 bond issued to yield 10% has 6 years remaining in its term. The bond pays interest…

A: The carrying amount of bond refers to the net amount of the bond's face value after considering an…

Q: On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays…

A: Discount on Bonds Payable = Face value of the bonds - Issue value of the bonds = $1,450,000 -…

Q: On July 1, a company issues a $1,000,000, 7%, five-year bond that pays semiannual interest of…

A: The discount on issue of bond is amortized over the life of the bond When the same amount of bond…

Q: On January 1, the first day of the fiscal year, a company issues a $1,800,000, 4% , five-year bond…

A: When the issue price of the bonds is more than the face value of the bonds the bonds are issued at…

Q: Issuing bonds at a discountOn the first day of the fiscal year, a company issues a $3,500,000, 6%…

A: Premium (discount) on bonds issue =   Issue value - face value of bonds = $3,350,000 - $3,500,000 =…

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: Situation te for the bond is 4%. te for the bond is 5%. Bond issued

A: Bonds are issued at a discount when the market rate is higher than the coupon rateBonds are issued…

Q: On the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays…

A: When a bond issued for a amount more than its face value then the excess amount received would be…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 7%, 10-year bond that pays…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a…

A:

Q: The following information pertains to Garden Corp.’s issuance of bonds on July 1, 1998:   Face…

A:

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: