Entries for issuing and calling bonds; gainMia Breen Company produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued$396,000 of 10-year, 8% callable bonds on May 1, 20Y5, at their face amount, with interest payable on May 1 andNovember 1. The fiscal year of the company is the calendar year.Journalize the entries to record the following selected transactions:20Y5May 1November 120Y9November 120Y5 May 1Issued the bonds for cash at their face amount.If an amount box does not require an entry, leave it blank.Paid the interest on the bonds.Issued the bonds for cash at their face amount.20Y5 Nov. 1Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment ofinterest.)Paid the interest on the bonds.20Y9 Nov. 188Called the bond issue at 97, the rate provided in the bond indenture. (Omit entry for payment of interest.)88

Bond is a financial instrument which can be issued by the organizations to raise the fund. Bond is…

Answered: Mia Breen Company produces and sells…

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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Show Me How Entries for Issuing Bonds and Amortizing Discount by Straight-Line Method On the first day of its fiscal year, Chin Company issued $25,500,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannua at a market (effective) interest rate of 13%, resulting in Chin receiving cash of $23,666,949. eBook a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) If an amount box does not require an entry, leave it blank. 1 2. 3. b. Determine the amount of the bond interest expense for the first year. $ c. Why was the company able to issue the bonds for only $23,666,949 rather than for the face…
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On July 1, 20Y1, Danzer Industries Inc. issued $48,800,000 of 10-year, 9% bonds at a market (effective) interest rate of 11%, receiving cash of $42,968,258. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, 20Y2, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for 20Y1. 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute the price of $42,968,258…
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Entries for Issuing Bonds Abioye Co. produces and distributes semiconductors for use by computer manufacturers. Abioye Co. issued $990,000 of 25-year, 9% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months. Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank. Round your answers to whole number. May 1 - Select - - Select - - Select - - Select - Nov. 1 - Select - - Select - - Select - - Select - Dec. 31 - Select - - Select - - Select - - Select -
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Thomson Co. produces and distributes semiconductors for use by computer manufacturers. Thomson issued $270,000 of 20-year, 8% bonds on May 1 of the current year at face value, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. May 1 Issued the bonds for cash at their face amount. Paid the interest on the bonds. Dec. 31 Recorded accrued interest for two months. Nov. 1 Journalize the entries to record the above selected transactions for the current year. If an amount box does not require an entry, leave it blank. May 1 Nov. 1 Dec. 31
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