On 1 January 2019 the company "A" S.A. issued bonds worth 500,000 at an interest rate of 4%, lasting 10 years at face value. Interest is paid per year every 31/12. Requested: To carry out journal entries on 1 January 2019 1 December 2019 31 December 2028, at the end of the management year.

On 1 January 2019 the company "A" S.A. issued bonds worth 500,000 at an interest rate of 4%, lasting 10 years at face value. Interest is paid per year every 31/12. Requested: To carry out journal entries on 1 January 2019 1 December 2019 31 December 2028, at the end of the management year.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: The following selected transactions relate to liabilities of United Insulation Corporation. United's…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…

A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.

Q: Recording Entries for an Installment Note Payable On January 1 of Year 1, a borrower signed a…

A: Written agreements called "notes payable" state that one party will give the other party a specific…

Q: PT ABC issues a $800,000, 7%, 15-yearmortgage note on December 31, 2019. Theterms provide for annual…

A: Payment of principal = Annual installment payments - Interest expense

Q: On January 1, 2022, Paulding Company, a calendar-year company, issued $1,000,000 of notes payable,…

A: Current liabilities are the amounts due to be paid within one year. Long-term debts are the amounts…

Q: QUESTION 7 On January 1, 2019, Fast Track Sdn Bhd issued 8% bonds worth RM300,000. This bond will…

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

Q: Question 8 : On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year…

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

Q: On September 30, 2020, siemens Corporation issued Rs.5,000,000 face value of 9%,5 years bonds to…

A: Lets understand the basics.Amortization of premium or discount on issue on bonds can be done…

Q: On January 1, 2019 Tenth Inning Company sold a 10 year Bond issue of $2,000,000. The Bonds were…

A: Simply ,Bond is an instrument which issued by borrower to the investor on behalf of his investment.…

Q: Martinez Ltd. issued a $890,000, 10-year bond at par on January 1, 2023. The bond paid 10% interest…

A: Lets understand the basics. Journal entry is required to make to record event and transaction that…

Q: al Mountain Industries borrows $23200 at 9% annual interest for six months on October 1, 2025. Which…

A: Accrued Interest Means Interest Generated On An Outstanding Debt During a Loan Period But Not The…

Q: Recording Entries for Note Payable Lacey Corp. issued a three-year, $17,500 note with an 8% stated…

A: Introduction: A journal entry can be used to record a commercial transaction in the accounting…

Q: 2. The following selected transactions relate to Collier Corporation's liabilities for December…

A: Vacation leave is provided to employees. Even if an employee does not work on the vacation day they…

Q: Exercise 2: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The…

A: The question is based on the concept of Financial Accounting. >Bonds Payable are the source…

Q: Wildhorse Co. issued a five-year interest-bearing note payable for $324000 on January 1, 2019. Each…

A: Balance sheet is the financial statement which involves the total debt, liabilities, assets and…

Q: On the first day of the fiscal year, a company issues $26,000, 12%, three-year installment notes…

A: Issue price of note is given at $26,000 and annual payment is $10,825 ($3,120 interest and $7,705…

Q: QUESTION 6 Merkell Company issued RM800,000 of 9%, 10-year bonds on January 1, 2019, at face value.…

Q: company issues $25,000,000, 7.8%, 20-year bonds to yield (market) 8% on January 1, 2020. Interest is…

A: Here the bonds having coupon rate 7.8% are issued to yield at 8% Thus represents that bonds are…

Q: Required Information [The following information applies to the questions displayed below.] Agrico…

A: Journal Entry is the primary step in recording the transactions in the books of accounts.The…

Q: ayable ber 2, 2020, a company borrowed cash and sign on October 2, 2023. At December 31, 2022, the…

A: Current liabilites are finanical obligations that are short term in nature. They are due within one…

Q: On January 1, 2019, Dhaka Company issued $1,000,000 of 6% bonds due on January 1, 2025. Interest on…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: Check my work Green Mountain Power Company obtained authorization to issue 20-year bonds with a face…

A: Please find the answer to the above question below:

Q: Recording Entries for Note Payable Lacey Corp. issued a three-year, $17,500 note with an 8% stated…

A: Introduction: A journal entry is a business transaction that is recorded in a company's accounting…

Q: View Policies Current Attempt in Progress On November 1, 2021, Golden Valley Inc. accepted a…

A: >Note receivables are the current asset. >It can be accepted in case of: --when goods…

Q: Item a. Rent received in advance for the first quarter of 2021. b. At December 31, bonds payable of…

A: Introduction: Current liabilities: The phrase current liabilities refers to a company's short-term…

Q: SPENCER CORP BORROWED $300,000 FROM NATIONAL BANK ON MAY 31 2019. THE ONE YEAR, 7% NOTE REQUIRED…

A: Interest expense: It can be defined as the cost incurred by the business in relation to the borrowed…

Q: April 10, 2021 – Alfa Issued 170,000 bonds with a nominal value of € 1.5. The issuance had a…

A: Bonds: Bonds are the financial securities issued by a company over and above or less than its…

Q: Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…

A: In this question, information related to bonds was given, on the basis of which we have to make an…

Q: I. Prepare all journal entries for the following chronological transactions which took place in…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Microsoft Technologies issued $580,000 of 6%, 10-year bonds at par value on October 31, 2020 that…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Journal entry to record the second period of interest, June 30, Matrix would record a credit to…

A: Given information is: On January 1, 2019, Matrix, Inc. purchased as an investment OMR 22,000, of 9%,…

Q: 1. On January 1, 2019 Nineteenth Hole Company sold a 20 year Bond issue of $4,000,000. The Bonds…

A: The journal entries are prepared to record daily transactions of the business.

Q: On December 31, 2022, the amount TCA Company will report in the non-current liabilities in its…

A: The original question involves a scenario where TCA Company issued a P 1,200,000, 10% promissory…

Q: Accounting ABC Corporation issued $100,000 of 5% bonds on January 1, 2023, with interest payable…

A: Interest expense refers to the cost of borrowing money over a specific period. It represents the…

Q: On January 1, 2022, Davison Corp. issues $500,000 of 9% 15-year bonds that pay interest year. Bonds…

A: Issue price of bonds would be present value of interest annuity & maturity amount at market rate…

Q: A company issues $20,000,000, 8%, 20-year bonds to yield (mkt) 6% on January 1, 2020. Interest is…

A: The bonds payable are reported as long-term liabilities. The bonds are issued at premium when market…

Q: eight What is the amount of Interest Expense that will be recorded on December 31, 202-

A: The interest on bonds is the cost of borrowing and is calculated using the…

Q: On January 1, 2025, Sheffield Corporation issued $690,000 of 9% bonds, due in 10 years. The bonds…

A: When the bonds are issued by a company in excess of its normal value, then it is said that bonds are…

Q: Taylor Insurance Company invests $210,000 to acquire $210,000 face value, 5%, five-year corporate…

A: Step 1: Preparation of journal entry on December 31, 2026.Date Account Titles and…

Q: On January 1, 2020 a corporation issued $600,000 face value of bonds due in 10 years with a…

A: Bond value = E(1-(1+r)-n)/r + F/(1+r)n Where F = face value = 600000 E = semiannual coupon payment =…

Q: Merlin SA started business one year ago and reported the following account balances sheet on 31…

A: Interest on financial instrument is charged on the fair value of the bond and the discount at the…

Q: Consider the following liabilities of Future Brands, Inc., at December 31, 2018, the company’s…

Q: Berlin AG started business one year ago and reported the following account balances sheet on 31…

A: When bonds are issued at a price higher than the face value, they are said to be issued at premium.…

Question

On 1 January 2019 the company "A" S.A. issued bonds worth 500,000 at an interest rate of 4%, lasting 10 years at face value. Interest is paid per year every 31/12.

Requested: To carry out journal entries on 1 January 2019

1 December 2019

31 December 2028, at the end of the management year.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Workings

VIEW

Journal Entries

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

On January 1, 2018, Nantucket Ferry borrowed $14,000,000 cash from BankOne and issued a four-year,$14,000,000, 6% note. Interest was payable annually on December 31. Prepare the journal entries for both firmsto record interest at December 31, 2018.
On the first day of the fiscal year, a company issues $89,000, 6%, five-year installment notes that have annual payments of $21,128. The first note payment consists of $5,340 of interest and $15,788 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. b. Journalize the first annual note payment
GENERAL JOURNAL Date ACCOUNT DESCRIPTION DEBIT CREDIT 2020
At the end of 2025, the following information is available for Great Adventures. • ⚫ Additional interest for five months needs to be accrued on the $31,800, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • ⚫ Assume that $11,800 of the $31,800 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. ⚫ By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $26,800 during the year and recorded those as Deferred Revenue. . ⚫ Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $13,800. ⚫ For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $5,800. Requirement General…
Recording Accrued Interest Expense Alaska Inc. borrowed $16,000 by signing a one-year note payable on November 1, 2020. The note bears interest at 10% and interest is payable upon maturity of the note. a. Record this financing transaction on November 1, 2020. b. Record the year-end adjusting entry required on December 31, 2020. Hint: Prorate the annual interest of 10% for two months. c. Record the entry to repay the note on November 1, 2021. Note: Round your answers to the nearest dollar. For example, enter 50 for 50.49 and enter 51 for 50.5
On January 1, 2021, CPS Co. borrowed $340,000 cash from iLend and issued a five-year $340,000, 4% note. Interest was payable annually on December 31. Required: Prepare the journal entries for both firms to record interest at December 31, 2021.
Class Exercise Summer 2019 1. On January 1, 2019 Denny's Burgers sold a 20 year Bond issue of $1,500,000. The Bonds were issued at a sale price of 95. The Bonds require semi-annual interest payments on July 1 and January 1 at a stated rate of 8%. Required: a. Journalize the issuance of the bonds on January 1, 2019. b. Journalize the interest payment of July 1, 2019 and any amortization of discount or premium. c. Journalize the accrual of interest on December 31, 2019 and any amortization of discount or premium. d. Journalize the payment of interest on January 1, 2020. Submit your journal to instructor
At the end of 2025, the following information is available for Great Adventures. • Additional interest for five months needs to be accrued on the $31,800, 6% note payable obtained on August 1, 2024. Recall that annual interest is paid each July 31. • Assume that $11,800 of the $31,800 note discussed above is due next year. Record the entry to reclassify the current portion of the long-term note. By the end of the year, $20,000 in gift cards have been redeemed. The company had sold gift cards of $26,800 during the year and recorded those as Deferred Revenue. • Great Adventures is a defendant in litigation involving a biking accident during one of its adventure races. The company believes the likelihood of payment occurring is probable, and the estimated amount to be paid is $13,800. • For sales of MU watches, Great Adventures offers a warranty against defect for one year. At the end of the year, the company estimates future warranty costs to be $5,800. Requirement General Journal…
Sagar
Adjusting journal entry for: On November 1st, 2018, FTS purchased a certificate of deposit from First National Bank for $25,000. The deposit earns interest of 2.0% annually and has a maturity end date of 11/1/2020. Interest earned is received annually on November 1st of each year.
karan subject-Accounting
Class Exercise Summer 2019 On January 1, 2018 Professors Credit Union sold a 10 year Bond issue of $500,000. The Bonds were issued at a sale price of 97. The Bonds require semi-annual interest payments on July 1 and January 1 at a stated rate of 1. 6%. Required: a. Journalize the issuance of the bonds on January 1, 2018. b. Journalize the interest payment of July 1, 2018 and any amortization of discount or premium. c. Journalize the accrual of interest on December 31, 2018 and any amortization of discount or premium. d. Journalize the payment of interest on January 1, 2019. Submit your journal to instructor