McIntyre Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants.

Q: ABC Company issued bands with a face amount of $1,000,000 and received $1,000,000 cash. Prepare the…

A: Solution: Bond are issued by the company to obtain debt financing. Bonds carry interest rate that…

Q: Novak Corporation issued 2.000 $1,000 bonds at 103. Each bond was issued with one detachable stock…

A: Journal entries are prepared to record the transactions in the books of account showing the double…

Q: TryNErr Corporation issued $1,000,000 of ten-year, 10% bonds payable. The market rate of interest at…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: Pinetop Corporation issued $153,000 of 8-year bonds at par. The bonds have a stated rate of 7% and…

A: The bonds payable are issued by the company to raise funds for long-term purposes.

Q: Waterway Inc. issued $3,830,000 par value, 7% convertible bonds at 98 for cash. If the bonds had not…

A: SOLUTION- JOURNAL IS THE COMPANY'S OFFICIAL BOOK IN WHICH TRANSACTIONS ARE RECORDED IN CHRONOLOGICAL…

Q: For each of the unrelated transactions described below, present the entry(ies) required. (a)…

A: Dear student, kindly check the answer in the answer explanation box below.Explanation:Part 1:…

Q: If the bonds payable account has a balance of $100,000 and the premium on bonds payable account has…

A: Premium on Bonds: When bond market costs higher than its face value then bonds is called at premium.…

Q: Tomasovich Inc. issued bonds with a face value of $ 100,000 and a stated rate of 8%. Tomasovich…

A: Journal Entry is CrDrCash account   $102,500To Bonds Payable account$100,000   To Premium on bonds…

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948

Q: Marigold Corporation issued 2,200 $1,000 bonds at 101. Each bond was issued with one detachable…

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

Q: Your answer is correct. Prepare the journal entry to record the redemption of the bonds at maturity,…

A: Gain on redemption of bonds =  carrying value of bond payable + unamortized premium on Bonds payable…

Q: Avery Companies Ltd issued $500,000 of 6%, 5 year bonds for $521,880 on January 1, 1877, the day the…

A: a. Record journal entry for issuance of the bond as shown below:

Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Can you help explain the computations on this problem: E. Corp issued 2,000 $1,000 bonds at 101.…

A: Lets understand the basics. When bond is issued with detachable stock warrent and if we are using…

Q: sell for 98 without the warrants. The market value of each warrant is $45. Instructions: A. Record…

A:

Q: Medhurst Corporation issued $91,900 in bonds for $89,000. The bonds had a stated rate of 6% and pay…

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

Q: If the Bonds Payable account has a balance of $700,000 and the Discount on Bonds Payable account has…

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

Q: Carla Corporation issued 2,200 $1,000 bonds at 103. Each bond was issued with one detachable stock…

A: A bond refers to a fixed income instrument that is used for representing the loan taken by the…

Q: A $1,600,000 bond issue on which there is an unamortized premium of $70,500 is redeemed for…

A: The company shares, bonds, debentures, etc., will be issued to meet the capital requirement of the…

Q: balance of $1,000,000 and Discount on Bonds Payable has a balance of $10,000. If the issuing…

A: Answer : Bonds payable balance = $1,000,000 Discount on bonds payable = $10,000

Q: Medhurst Corporation issued $89,200 in bonds for $86,000. The bonds had a stated rate of 5% and pay…

A: The bonds are issued on discount when market rate is greater than the stated rate of interest.

Q: A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to…

A: Proceeds from redemption  = $294,000 * 98/100 = $288,120

Q: Pinetop Corporation issued $153,000 of 12-year bonds at par. The bonds have a stated rate of 5% and…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: Crane Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock…

A: Step 1: Calculate the total cash received from selling the bonds and the total value of the…

Q: Federer Corporation issued $540,000 in bonds for $498,600. The bonds had a stated rate of 12% and…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: A company issued 432 $1,000 bonds at 116, and each bond was issued with one detachabl

A: Solution  Market value of bond= 432 * $1000 * 1.04= 449280   Issue price = 432 * $1000 * 1.16=…

Q: much should be recorded for Discount (or Premium) on Bonds Payable? (Enter an amount. Please do not…

A: Journal: Journal is considered as a book of original entry because all the transactions that have…

Q: Blossom Capital Ltd. issued 450 $1,000 bonds at 101. Each bond was issued with 10 detachable stock…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Nichols Inc. issued 3,000 $1,000 bonds at 102. Each bond was issued with one detachable stock…

A: Proportional Method of Allocation between bond and Warrant The division of the proceeds from a bond…

Q: Partially correct answer iconYour answer is partially correct. Sweet Company issued $11,000,000 par…

A: calculate the value of bonds: value of bonds = $11,000,000 * (97 /100) Value of bonds = $11.000.000…

Q: Vaughn Corporation issued 1,800 $1,000 bonds at 101. Each bond was issued with one detachable stock…

A: Answer:- A bond is a fixed income security that is used to signify a loan that a borrower has…

Q: Ayayai Corporation issued 5,000 $1,000 bonds at 98. Each bond was issued with one detachable stock…

A: Discount on bonds payable = No. of bonds x face value per bonds x (100-sales price)% = 5000 x $1000…

Q: Medhurst Corporation issued $82,900 in bonds for $80,000. The bonds had a stated rate of 6% and pay…

A: Bonds are issued by the company to meet the financial requirements of the company without losing its…

Q: e selling in the market at 99, and the warrants had a market price of $35. oportional method to…

A: Answer : Account title Dr. Cr. Cash ($1,800,000*1.03) $1,854,000   Discount on bonds payable…

Q: On December 31 Wintergreen, Incorporated, issued $150,000 of 7 percent, 10-year bonds at a price of…

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

Q: The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Langdon & Co. issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond carries 10…

A: We need to separate the value assigned to the bonds and the warrants.  As a first step we will…

Q: A company issued $500,000 of bonds for $498,351. Interest is paid semiannually. The bond markets and…

A: if bond is issued at lower value and redeemed at premium it is said to be issued at discounthere in…

Q: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: ws the holder to acquire one share of $1 par common stock for $40 per share. Immediately after the…

A: Answer : Market value of bond without warrant  =($1000*99%)*$50,000/1000 = $49,500  Market value of…

Q: Blanca Company has the following independent bond issuances. a.) Issues $600,000 bonds at 96. b.)…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…