Madrid Company plans to issue 11% bonds with a par value of $5,700,000. The company sells $5,130,000 of the bonds at par on January 1. The remaining $570,000 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.- Required 1- Required 2"Record the entry for the first interest payment on June 30."There are no graphs or diagrams present in the image. **Journal Entry Worksheet****Task:**Record the entry for semiannual interest paid.**Instructions:**Note: Enter debits before credits.**Table Structure:**- **Date**: - June 30- **Columns**: - **General Journal**: Space to enter the account titles and explanations. - **Debit**: Space to record debit amounts. - **Credit**: Space to record credit amounts.**Buttons:**- **Record entry**: Click to save the entry.- **Clear entry**: Click to erase the current input.- **View general journal**: Click to view all recorded entries.**Navigation:**- **Required 1 [disabled]**- **Required 2 [enabled]**: Click to move to the next required task or section.

BOND Bond is Generally issued by the Company or Government to generate fund for their Business. In…

Answered: Madrid Company plans to issue 11% bonds…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Quaker Company announces a bond issue of $71,400 to be issued at 5% (which is at par). It is a ten year issue with interest paid semi-annually and principal due on the maturity date. The issue date is to be July 1st. However the bonds are actually not sold until September 1st. Quaker Company prepares its annual financial statements on October 31st. Required 1: What is the amount of cash received by Quaker Company on September 1st? $ Required 2: What is the amount of interest payable recognized in the books as of October 31st of year 1? $ Required 3: What is the amount of loan payable cancelled in year 10? $ please confirm required 2!
On January 1, Renewable Energy issues bonds that have a $20,000 par value, mature in eight years, and pay 12% interest semiannually on June 30 and December 31. 1. Prepare the journal entry for issuance assuming the bonds are issued at (a) 99 and (b) 1031⁄2. 2. How much interest does the company pay (in cash) to its bondholders every six months if the bonds are sold at par?
On January 1, Boston Enterprises issues bonds that have a $1,450,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will the issuer 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 Prepare the journal entry for issuance assuming the bonds are issued at (a) 95 and (b) 105. View transaction list Required 3 1 Record the issue of bonds at 95. 2 Record the issue of bonds at 105. X Credit >
For each of the following three examples, provide the journal entry that the company would make on the date the bonds are issued. Note that you will need to do a present value calculation to determine the cash proceeds from each bond issue. You can round your answer to the nearest dollar. 1. Andersson Inc. issues 8-year bonds with a face value of $50,000,000 and a stated annual interest rate of 6%. The bonds pay interest semiannually on June 30 and December 31. The annual market rate of interest on the date of issue is 8%.
On the first day of the fiscal year, a company issues a $8,400,000, 12%, 8-year bond that pays semiannual interest of $504,000 ($8,400,000 × 12% × ½), receiving cash of $8,839,411. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays semiannual interest of $147,000 ($4,900,000 × 6% × ½), receiving cash of $4,440,130. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
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 the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays semiannual interest of $33,000 ($1,100,000 × 6% × ½), receiving cash of $1,178,944. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable Cash
On the first day of the fiscal year, a company issues a $3,400,000, 7%, 10-year bond that pays semiannual interest of $119,000 ($3,400,000 x 7% x 12), receiving cash of $2,764,428. Using straight-line amortization, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. DO
Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $2,500,000 par value, mature in four years, and pay 6% interest semiannually on June 30 and December 31. 1. Record the entry for the issuance of bonds for cash on January 1. 2. Record the entry for the first semiannual interest payment and the second semiannual interest payment. 3. Record the entry for the maturity of the bonds on December 31, 2024 (assume semiannual interest is already recorded). View transaction list Journal entry worksheet 1 2 3 Date January 01 Record the issuance of bonds for cash on January 1. Note: Enter debits before credits. 4 General Journal Debit Credit >
On January 1, 2018, for $17.4 million, Cenotaph Company purchased 8% bonds, dated January 1, 2018, with a face amount of $19.4 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. Required: 1. Prepare the journal entry to record interest on June 30, 2018, using the effective interest method. 2. Prepare the journal entry to record interest on December 31, 2018, using the effective interest method. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare the journal entry to record interest on June 30, 2018, using the effective interest method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.) View transaction list Journal entry worksheet 1 > Record the entry to interest on June 30, 2018, using the effective interest method. Note: Enter debits before credits. Date General…
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.

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