Madrid Company plans to issue 10% bonds with a par value of $5,800,000. The company sells $5,220,000 of the bonds at par onJanuary 1. The remaining $580,000 sells at par on July 1. The bonds pay interest semiannually on June 30 and December 31.1. Record the entry for the first interest payment on June 30.2. Record the entry for the July 1 cash sale of bonds.Complete this question by entering your answers in the tabs below

Bonds payable refer to a long-term liability that a company incurs when it borrows money by issuing…

Answered: Madrid Company plans to issue 10% bonds…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

On January 1, a company issues 9%, five-year bonds with a par value of $109,000 and semiannual interest payments. Following are the first few rows of the straight-line amortization table. (0) (1) (2) January 1, issuance June 30, first payment December 31, second payment Prepare journal entries for the following transactions. January 1 June 30 Bond issuance. First interest payment. December 31 Second interest payment. Semiannual Period-End View transaction list 1 2 3 Record the issuance of the bonds on January 1. Record the first interest payment on June 30. Unamortized Premium $ 8,291 7,462 6,633 Record the second interest payment on December 31. X Carrying Value $ 117,291 116,462 115, 633
On August 1, 2010, a company issues bonds with a par value of $600,000. The bonds mature in 10 years and pay 6% annual interest, payable each February 1 and August 1. The bonds sold at $632,000. The company uses the straight-line method of amortizing bond premiums. The company's year-end is December 31. Prepare the general journal entry to record the interest accrued at December 31, 2010. Edit Format Table 12pt v Paragraph v BIUA ev T?v F1 F2 F3 F4 F5 F6 F7 F8 F9 F10 ... !!
Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 ¼.Prepare the journal entry for the issuance of these bonds for cash on January 1.
On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $4,300,000. The bonds pay interest semiannually. The market rate of interest is 9.5% and the bond selling price was $4,007,812. The bond issuance should be recorded as: Multiple Choice Debit Cash $4,007,812; debit Interest Expense $292,188; credit Bonds Payable $4,300,000. Debit Cash $4,007,812; credit Bonds Payable $4,007,812. Debit Cash $4,300,000; credit Bonds Payable $4,007,812; credit Discount on Bonds Payable $292,188. Debit Cash $4,300,000; credit Bonds Payable $4,300,000. Debit Cash $4,007,812; debit Discount on Bonds Payable $292,188; credit Bonds Payable $4,300,000.
Enviro Company issues 10%, 10-year bonds with a par value of $240,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 12%, which implies a selling price of 88 1/2. Prepare the journal entry for the issuance of the bonds for cash on January 1. View transaction list Journal entry worksheet 1 Record the issue of bonds with a par value of $240,000. Note: Enter debits before credits. Date January 01 Record entry General Journal Clear entry Debit Credit View general journal
On January 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20 years, and pay 10% Interest semlannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second Interest payment on December 31. 3. Prepare the journal entry for Issuance assuming the bonds are issued at (a) 95 and (b) 105. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 How much interest will Boston pay (in cash) to the bondholders every six months? Semiannual Rate Semiannual Cash Interest Payment Par (maturity) Value Required 2>
On January 1, a company issues bonds: Par Value: $2,000,000 Bond Term, in years: 10 Interest Payments: 2x/year Stated Interest Rate: 8% Market Interest Rate: 6% How much will the bond sell for? What dollar amount will be booked to Bonds Payable on the date of sale? How much is Interest Expense on the FIRST interest payment? How much is the amortization of the Bond Premium on the FIRST interest payment? How much is the Interest Expense on the SECOND interest payment? How much is the Amortization of the Premium on the SECOND interest payment?
Enviro Company issues 8%, 10-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 1/2. Prepare the journal entry for the issuance of the bonds for cash on January 1.
not use ai please
On January 1, Boston Enterprises issues bonds that have a $1,350,000 par value, mature in 20 years, and pay 8% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. 3. Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 103. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entry for issuance assuming the bonds are issued at (a) 97 and (b) 103.
Milan Company issued bonds with a face value of $463,000 on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a six-year term. The bonds were issued at face value. Interest is payable on an annual basis. Required a. What total amount of interest will Milan Company pay in Year 1 if bond interest is paid annually each December 31? b. What total amount of interest will Milan Company pay in Year 1 if bond interest is paid semiannually each June 30 and December 31? (Do not round intermediate calculations.) a. Total amount of interest b. Total amount of interest
On January 1, Topeka Outfitters issued $175,000 of 6%, 3-year bonds when the market rate of interest was 10%. The bonds pay interest semiannually on June 30 and December 31. A. How much are the proceeds that Topeka Outfitters? will receive on the issue date of the bonds? B. Prepare an amortization table for the bond issue. C. If the bonds are retired at the end of Year 2 at 104.5% of the maturity value, how much gain or loss on retirement will be reported?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS