Lao Company issued 500,000 of 5-year, 8% bond at 97 on January 1, 2020. the bonds pay interest annually, Instructions a. 1. Prepare journal entry to record the issuance of the bonds. 2. Compute the total cost of borrowing for these bonds b. Repeat requirements from part (a), assuming the bonds were issued at 105.

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A: The bonds are issued at premium when the market rate is lower than the coupon rate of bonds payable.…

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Q: January 1, 2024, Nurses Credit Union (NCU) issued 7%, 20-year bonds payable with face value of…

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Q: Martinez Company issued $650,000, 9%, 10-year bonds on January 1, 2020, at 103. Interest is payable…

A: Interest to be paid = Face value of bonds x stated rate of interest x period = $650,000 x 9% =…

Q: On January 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…

A: Solution: Premium on issue of bond is computed as bond issue price less face value of bonds…

Q: Ivanhoe Company issued $680,000 of 5-year, 8% bonds at 96 on January 1, 2022. The bonds pay interest…

A: Bonds Payable -Bonds are the notes issued by the payer to the collector. It is a promissory note…

Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…

A: Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash $311,500…

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

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A: Each transactions needs to be recorded in the books of accounts. Journal entries are basic…

Q: On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which…

A: The bonds payable are issued at premium when market rate is less than the coupon rate of bonds…

Q: PANGILINAN Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable…

A: solution : given: face vale            =4000000 interest payable            = semiannually interest…

Q: On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays…

A: Solution: Discount on issue of bond = Face value - Issue price = $946,000 - $889,240 = $56,760…

Q: Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for…

A: Bonds is a financial debt instrument that pays fixed periodic interest and face value amount at the…

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

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A: Annual interest payment = Face value of bonds x rate of interest x Year = $700,000 x 10% = $70,000

Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid…

A:

Q: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…

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

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A: To assist you in completing the table and journal entries, we need to follow these steps: 1. Journal…

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

A:

Q: Req 1 Req 2A to 20 Req 3 Semiannual Period-End Req 4 Prepare the first two years of a straight-line…

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Q: Mitchell Inc. received $568,547 from the issuance of 600, 6%, $1,000 bonds on January 1, 2020. The…

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Q: On January 1, 2025, Paxton Planning Services issued $56,000 of 2% bonds that mature in five years.…

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Q: On January 31, 2021, Dogwood Logistics, Inc, issued ten-year, 12% bonds payable with a face value of…

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Q: Monty Corp. uet 1900 S, vea. L000 bonds dated anuary 1. 2022. at face value. terest in pait each…

A: Journal entries are foundation for accounting transactions of the entity where it involves an debit…

Q: Quick Lane Auto Service issued $50,000, 10-year bonds on January 1, 2021. of interest on the bonds…

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Q: If the company issued RO 100,000 , 5% interest, 10-year bonds at 98 on January 1, 2021, which of the…

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Q: On January 1, 2021, Daniel Corp. issued $500,000 of 10-year, 8% bonds for $385,298, yielding a…

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Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2019, with a $250,000 par value. The…

A: It is a fixed income instrument that represents a loan made by an investor to a borrower ( corporate…