Nicholas Smith Fitness Gym has $700,000 of 20-year bonds payable outstanding. These bonds had a discount of $56,000 at issuance, which was 10 years ago. The company uses the straight-line amortization method. The current carrying amount of these bonds payable is $672,000. $644,000. $700,000. $728,000.

Q: DeKay Dental Supplies issued $10,000 of 20-year bonds on January 1, 2021. The bonds pay interest…

A: The bonds payable are the financial instruments for the business which are issued to raise money…

Q: Jan. 1, Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2 Dec. 31, Year 2 June 30, Year 3 Dec.…

A: Bond amortization table is a table prepared by company which shows the amount of interest expenses,…

Q: Coronado Industries retires its $680000 face value bonds at 103 on January 1, following the payment…

A: The redemption of bonds referrers when the issuer calls the bonds and pays the face value of bonds…

Q: Manly Company issued $400,000 of 9%, 10-year bonds at 102. Interest is paid annually, and the…

A: Bonds are defined as financial instruments used by companies to raise additional funds from the…

Q: Sparkle Shoes Company issued ten-year, 7% bonds with a total face value of $1,800,000. The bonds…

A: The expenses of the bonds over the life of the bonds are the expenses which are shown and recorded…

Q: Sandhill Co, issued $1,080,000, 9-year bonds. It agreed to make annual deposits of $86,000 to a fund…

A: Sinking fund refers to an amount of fund that should be kept aside for the purpose of paying off the…

Q: A company has $200,000 of 10-year bonds payable outstanding. These bonds had a discount of $24,000…

A: Bonds: It is a debt instrument issued by the government or the organisation to the holders.

Q: Splish Brothers Inc. issues $7,600,000 of 5% bonds due in 5 years with interest payable at year-end.…

A: Bonds are issued by large organizations such as corporations, municipal organizations, state or…

Q: Rushton Corp., a wholesaler of music equipment, issued $15,710,000 of 20-year, 8% callable bonds on…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: Vaughn Company received proceeds of $206800 on 10-year, 6% bonds issued on January 1, 2020. The…

A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Q: eridan Company issued $970000 of 8%, 5-year bonds at 104, which pay interest annually. Assuming…

A: Answer : Interest payment = $970,000*8% = $77,600 premium =$970,000 * 1.04 - $970,000= $38,800…

Q: Culver Corporation issues $450,000 of 8% bonds, due in 9 years, with interest payable semiannually.…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Oak Branch Inc. issued $720,000 of 4%, 10-year bonds when the market rate was 3%. They received…

A: Date Cash Interest Payment $ Interest on Carrying Value (@1.5%) $ Amortization of Premium $ Carrying…

Q: Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and…

A: Interest expense is defined as the cost of borrowing the amount or money, in short, it is the price…

Q: Blossom Company issued $1,340,000, 14-year bonds. It agreed to make annual deposits of $ which will…

A: A sinking fund is an account that is created by an organization, usually the government or a…

Q: On January 1, 2025, First Secure Services issued $130,000 of 10% bonds that mature in ten years.…

A: Whenever a firm issues bonds to earn cash, bonds payable are usually recorded. The corporation seems…

Q: Bonita Corporation issues $470,000 of 9% bonds, due in 9 years, with interest payable semiannually.…

A:

Q: Diana Inc. issued $300,000 of its 7%, 5-year bonds for $287,844 when the market rate was 8%. The…

A: Bonds are the debt security which is issued by government or corporates for arranging the funds.…

Q: Rushton Corp., a wholesaler of music equipment, issued $3,650,000 of 20-year, 14% callable bonds on…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: A company issues $10,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2013. Interest is paid…

A: Face Value of Bonds $1,00,00,000 Less: Proceeds from the bonds $98,02,072 Discount on bonds…

Q: 2. McCool Corporation wholesales repair products to equipment manufacturers. On April 1, 2010 McCool…

A: 2. Following are the journal entries: c. The company was able to issue bonds for $32,446,500 rather…

Q: Malcolm Company borrowed money by issuing $2,500,000 of 7% bonds payable at 102.7 on July 1, 2021.…

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

Q: Oak Branch Inc. issued $860,000 of 5%, 10-year bonds when the market rate was 4%. They received…

A: Definition: Interest: Amount charged on the borrowed principal amount.

Q: Required a. Organize the transaction data in accounts under the accounting equation for Year 2 and…

A: In an accounting equation the total asset balance must always equal the total liabilities plus…

Q: Carla Vista Company issued $1,700,000, 13-year bonds. It agreed to make annual deposits of $79,500…

A: Amount in the Sinking Fund (Future Value of an Ordinary Annuity)Here, we have the annual deposits…

Q: Oak Branch Inc. issued $820,000 of 6%, 10-year bonds when the market rate was 5%. They received…

A: Here in this question, we are required to prepare amortization table for the first three years. When…

Q: Acme Organic Potato Chip Corp. sold an issue of 12-year $1,000 par bonds for general corporation…

A: The price of the bond is the value that investors are willing to pay for a bond.

Q: Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What…

A: Given,  Bond Face Value $  50,000    Issue Proceeds $  48,000    Discount on Bonds $    2,000…

Q: Why are these coming up as wrong?

A: Step 1 Journal is the part of book keeping. In this Interest is due or outstanding at market rate…

Q: Starks products uses the cost method to account for investments in bonds. They purchased cash…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Soap Company issued $200,000 of 8%, 5-year bonds on January 1, 20X6. The discount on issuance was…

A: A bond is issued by the company for raising finance for the business working. It is considered a…

Q: On January 1, 2014, New Country issued $200,000 of ten-year 8% bonds at 98. These bonds were…

A: Total Discount on bonds issue = Face value of bonds x (100 - bonds issue price) = $200,000 x (100% -…

Q: Eli Inc. issued $100,000 of 10% annual, 5-year bonds for $103,200. What is the total amount of…

A: Premium on Bonds issue = Issue value - Face value of bonds = $103,200 - $100,000 = $3,200

Q: Thompson Distributors sold $50,000 worth of bonds to raise money for a new warehouse.…

A: Introduction: A bond is a fixed payment obligation issued by corporations or government entities to…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.