On April 30, Year 1, Augusta Corporation issued $5,000,000 of 4% 10-year bonds paying interest semi-annually on April 30 and October 31. The bonds were sold for $5,166,715 to yield 3.6%. Augusta’s year-end is December 31. Instructions: a) Prepare a bond amortization table for the first 4 interest periods. b) Journalize the following entries: Issue of the bonds October 31, Year 1, interest payment December 31, Year 1 interest accrual April 30, Year 2, interest payment October 31, Year 2, interest payment December 31, Year 2 interest accrual April 30, Year 3, interest payment

Q: On April 30, Year 1, Augusta Corporation issued $5,000,000 of 4% 10-year bonds paying interest…

A: Journal entry refers to the process of recording business transactions for first time in the books…

Q: Gia Company had the following bond issue: Date of issue/sale: April 1, 20-A Face value: $200,000…

A: Cash received on bonds issue =Face value of bonds x issue price = $200,000 x 99/100 = $198,000

Q: The Marx Company issued $74,000 of 8% bonds on April 1 of the current year at face value. The bonds…

A: Interest will be calculated on the face value of $74000 and the applicable interest rate is 8%.…

Q: Dunphy Company issued $10,000 of 6%, 10-year bonds at par value on January 1. Interest is paid…

A:

Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…

A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300

Q: On January 1, 20XX, Cisco Corporation issued a $600,000, 9%, 5-year bond for $576,834. The bonds…

A: Bond's discount or premium is caused due to difference between market rate and couporate.

Q: On January 1, 200C, the Gabriella Corporation issued $800,000, 8%, 10-year bonds at 98. Interest is…

A: working note: 1.The straight-line amortization of an Discount on bond payable will be $1600 ($16000…

Q: On the first day of the fiscal year, a company issues a $2,750,000, 8%, 5-year bond that pays…

A: Bonds are the form of loan or debt that is being issued by the company and on which regular interest…

Q: Marvin Company issues $125,000 of bonds at face value on January 1. The bonds carry a 6% annual…

A: ANSWER:- (1) Option D  (7,500)=NA+(7,500) NA-7,500=(7,500) (7,500)OA is correct Explanation:- Amount…

Q: On January 1, Applied Technologies Corporation (ATC) issued $600,000 in bonds that mature in 10…

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

Q: Prepare a bond amortization table for the bond. Journalize the following entries Issue of the…

A: Solution:- Given, Augusta corporation issued 5,000,000 of 4% 10 year bonds paying interest semi…

Q: Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on…

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: On January 1, Year 1, Parker Company issued bonds with a face value of $65,000, a stated rate of…

A: Bond is a financial instrument which is issued by the large organization to raise the funds. Bonds…

Q: On June​ 30, Power Company issues 5%​, five​-year bonds payable with at face value of $60,000. The…

A: Journal entry : It is prepared to record the financial and non financial transaction of the business…

Q: On January 1, Year 1, Victor Company issued bonds with a $875,000 face value, a stated rate of…

A: Lets understand the basics. When bond is issued at less than the face value of bond then bond is…

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

A: The bonds are the financial instruments that are used to raise money from the market or investors.

Q: On April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bonds at a market interest…

A: a. Issuance of the bonds on April 1, Year 1: Date Accounts title and explanation Debit ($) Credit…

Q: Hoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on…

A: Interest expense = Face value of bonds x rate of interest x no. of month/12 = $32,700,000 x 6% x…

Q: On the first day of the fiscal year, a company issues a $2,050,000, 9%, five-year bond that pays…

A: Bond: It is  long-term financial instrument issued by a company. Interest is paid to bond holders…

Q: Fireside, Inc. had the following bond issue: Date of issue/sale May 1, 20-A Principal amount:…

A: Journal entry is a record of financial transaction in the books of accounts maintained by an…

Q: On January 1, the first day of the fiscal year, a company issues a $1,500,000, 11% , five-year bond…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On the first day of the fiscal year, a company issues a $3,300,000, 12%, 6-year bond that pays…

A: The bonds payable are the financial instruments that are used to raise money from the market or…

Q: On January 1, Applied Technologies Corporation (ATC) issued $520,000 in bonds that mature in 10…

A: When the market interest rate and stated interest rate both are same, then bonds will be issued at…

Q: the current fiscal year (for the issuer’s books):   (a) Issuance of the bonds. (b) First annual…

A: No. Particulars  Debit Credit a         Cash 2125000     Premium on bonds payable   125000…

Q: ay of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest…

A: Solution: Semiannual interest amount = $800,000*6%*6/12 = $24,000 Discount amortization = ($800,000…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $700,000, 5%, 10-year…

A: The accounting equation shows the equal balance of assets side and equity& liability side, it…

Q: On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays…

A: Discount on Bonds Payable = Face value of the bonds - Issue value of the bonds = $1,450,000 -…

Q: On January 1, Lincoln Corp. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest…

A: Carrying amount of bonds = Issue price of the bonds - Premium amortized Cash interest paid= Face…

Q: Milan Company issued bonds with a face value of $275,000 on January 1, Year 1. The bonds had a 7…

A: Answer:- a: Total amount of interest Interest paid on December 31 = 275000 x 7% =$19,250

Q: Prepare the necessary journal entries to record the following transactions relating to the long-term…

A: