On December 1, 2019, Tane, Inc., issued $460,000 of 7 percent, 3-year bonds for cash of $460,895. The bonds pay interest semiannually. The total cost of borrowing equals
Q: CHINA Corporation, on January 1, 2021, issued 30,000, 10%, P100 bonds for P2,900,305. Principal…
A: As per effective interest method, the amount of interest expense correlates with the carrying value…
Q: Discount-Mart issues $16 million in bonds on January 1, 2021. The bonds have a ten-year term and pay…
A: Correct option is (c) 12%
Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…
A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…
Q: On January 1, 2021, Lyle’s Limeade issues 4%, 10-year bonds with a face amount of $90,000 for…
A:
Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…
A: Given: Par value of bonds: $200000 Rate of interest 6% Maturity year IS 10 Interest is paid annually…
Q: On January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds…
A: Given: Face value= $5,000,000 i (Stated interest rate) = 14% n (Time period)= 10 x 2 = 20 Market…
Q: Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: Solution: Premium on issue of bond is computed as bond issue price less face value of bonds…
Q: On January 1, 2019, Black Panther, Inc. issued P4,000,000 of 9% bonds, dated January 1 at 97.…
A: Determine Carrying amount of bonds payable Face value of bonds P4,000,000 Issued at 97% issued…
Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…
A: PREPARATION OF BOND DISCOUNT SCHEDULE
Q: On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds…
A: Requirement 1: Compute the amount of liability.
Q: On June 1, 2024, Ivanhoe, Inc. issued $6,880,000, 6% bonds for $6,743,260, which includes accrued…
A: Answer:- Journal entry:- Journal entry is very much important for the business entities to record…
Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…
A: Bonds are bearer financial instruments with fixed interest that businesses issue to raise capital.…
Q: The interest expense on the income statement for the year ended December 31, 2021 is:
A: Bonds are a kind of financial instrument issued for raising cash by the entities for a perspective…
Q: On January 1, 2021, a company issued $2,000,000, 10-year, 7% bonds, when the market rate was 8%.…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: On January 1, 2019, the JSW Corporation issued 10% bonds with a face value of $100,000. The bonds…
A: Answer - Working Note : The computation of the interest expense is shown below: The bond interest…
Q: Beta Co. invests in $5,000,000 of 8%, 7-year bonds issued by Infosys Inc., intending to hold the…
A: For the year ending March 31, 2027, Beta Co will have the following accounts related to the bonds on…
Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…
A: 1. Compute amount of bonds report in its balance sheet as shown below: Working note: Compute…
Q: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…
A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200
Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…
A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732
Q: On March 1, 2021, Brown-Ferring Corporation issued $100.0 million of 15% bonds, dated January 1,…
A: Accrued Interest- In accounting, accrued interest refers to the sum of interest that has been…
Q: On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2,157,700. The bonds will…
A: Interest payment = $2,460,000*8% Interest payment = $196,800
Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…
A:
Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…
A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…
A: The question is based on the concept of the issue of securities. As per Bartleby guidelines we are…
Q: Mitchell Inc. received $568,547 from the issuance of 600, 6%, $1,000 bonds on January 1, 2020. The…
A: First, let's compute if there's a discount or premium on the bonds issued. Get the difference…
Q: Windsor, Inc. has issued three different bonds during 2019. Interest is payable annually on each of…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…
A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…
Q: On October 1, 2010, EEE Inc. issued, at 101 plus accrued interest, 800 of its 10 percent, P1,000…
A: In the given case - P1000 Bonds are dated 1st July-2010. The bonds are issued on 1st October-2010…
Q: Strick Sticky Corp. is authorized to issue $2,000,000 of 8%, ten year bonds payable. On February 1,…
A: The amortization table is a table of the payments in which all the carrying values of the bonds are…
Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.
Q: On January 1, 2021, Daniel Corp. issued $500,000 of 10-year, 8% bonds for $385,298, yielding a…
A: Bonds payable refer to financial instruments which can be issued to raise capital. Bonds are issued…
Q: On January 1, 2018, Splash City issues $470,000 of 7% bonds, due in 20 years, with interest payable…
A: Amortization schedules show down how much of each payment goes toward principle reduction and how…
Q: On June 1, 2019, Vape Inc. issued P12,000,000 of 10% bonds to yield 12% effective rate. Interest is…
A: The carrying value of a bond is the the net amount between the bond's face value plus any…
Q: Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest…
A: Effective Interest rate refers to the compounded interest rate that the bond holder actually pays as…
Q: On January 1, 2025, Shamrock Corporation issued $680,000 of 9% bonds, due in 8 years. The bonds were…
A: When a bond payable is issued below par then, it is said to be issued at a discount. The discount is…
Q: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…
A: Face value of bond = $ 1,900,000 Issue price of bond = $ 1,641,812…
Q: On January 1, 2020, Swifty Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds were…
A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…
Q: On January 1, 2018, Technicians Credit Union, (TCU), issued 8%, 20-year bonds payable with a…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On January 1, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…
A: Working notes :-…
Q: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…
A: 1. Calculation for Bonds Issuance Entry A) Discount on issue of bonds. = Bonds Issue price-Bonds…
Q: On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1,000,000 and an annual…
A: Bonds issued at discount: Bonds are said to be issued at discount if the issue price is less than…
Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…
A: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…
Q: On August 1, 2021, Space Company issued at 97 plus accrued interest, 2,500 of its 12%, P1,000 bonds.…
A: Formula: Cash received on the issue of bonds= Face value of bond x Issue rate of bonds.
Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…
A: Definition: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…
On December 1, 2019, Tane, Inc., issued $460,000 of 7 percent, 3-year bonds for cash of $460,895. The bonds pay interest semiannually. The total cost of borrowing equals
Step by step
Solved in 2 steps
- On March 1, 2021, FLAXSEED Inc. issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000 bonds. The bonds are dated January 1, 2021 to mature on January 1, 2031. Interest is payable semi-annually on January 1 and July 1. From the bond issuance, how much cash did FLAXSEED receive? (Solution must be in good accounting form. Excel format would be good for a good accounting form! Thanks a lot, Tutor! I hope you can help me)On March 1, 2021, Patriot Company issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000 bonds. The bonds are dated January 1, 2021 to mature on January 1, 2031. Interest is payable semi-annually on January 1 and July 1. From the bond issuance, how much cash did Patriot receive?On January 1, 2021, Solo Securities issued a $600,000,6%, three-year bonds payable. The market rate was 4% at issuance. Interest is paid semi-annually each June 30 and December 31. Solo Securities uses the effective interest method of amortization.
- Hasley Company issued $800,000, 11%, 10-year bonds on December 31, 2018, for $730,000. Interest is payable annually on December 31.The Company uses the straight-line method to amortize bond premium or discount.McDorral Corporation issued $100,000 of 10%, 11-year bonds payable on January 1, 2020, for $92,480. The market interest rate when the bonds were issued was 12%. Interest is paid semi-annually on January 1 and July 1. The first interest payment is July 1, 2020. Using the effective-interest amortization method, how much interest expense will McDorral record on July 1, 2020? A. $5,000 OB. $5,228 C. $6,772 D. $6,000 O E. $5,549On July 1, 2019, Cyclic Inc issued $1,000,000 in principal of 6% bonds due in July 2024. The bond pays interest quarterly on January 2, April 1, July 1, and October 1. On July 1, 2020, immediately following an interest payment. Epimetheus Bank purchased $5000 in face value of these bonds for $4501. Epimetheus Bank intends to trade this bond as part of its business operations. When Epimetheus Bank purchased the bond, it calculated that the historical market rate was 9%. When Epimetheus Bank received the interest payment on October 1,2020, what were the journal entries? Select all that apply. Cr. Interest revenue $75 Dr. Amortization of discount on trading debt $26 Cr. Interest revenue $101 Dr Cash $75 Dr Cash $101 Cr. Trading debt receivable $26
- On January 1, 2025, Martinez Company issued $1,800,000 face value, 7%, 10-year bonds at $1,932,482. This price resulted in a 6% effective-interest rate on the bonds. Martinez uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. (a) Prepare the journal entries to record the following transactions. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 125.) 1. 2. 3. 4. No. 1. 2. 3. 4. The issuance of the bonds on January 1, 2025. Accrual of interest and amortization of the premium on December 31, 2025. The payment of interest on January 1, 2026. Accrual of interest and amortization of the premium on December 31, 2026. Date Jan. 1, 2025 Dec. 31, 2025 Jan. 1, 2026 Dec. 31, 2026 Account Titles and…On January 1, 2020, Concord Corporation issued $570,000 of 9% bonds, due in 8 years. The bonds were issued for $603,210, and pay interest each July 1 and January 1. The effective-interest rate is 8%. Prepare the company's journal entries for (a) the January 1 issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. Concord uses the effective-interest method. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to O decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Date . 1, 2020 /1, 2020 :31, 2020 Cash Bonds Payable Premium on Bonds Payable Cash Interest Expense Premium on Bonds Payable Interest Payable Interest Payable Cash Debit 603210 48259 3041 25650 Credit 570000 33210 25650 51300 25650Spurrier Corp. has 10-year bonds with a face value of $400,000 and a carrying value of $420,345 as of 12/31/19. On June 30, 2020, they pay their bondholders $12,000 and recognize $10,509 in interest expense. Please provide the June 30, 2019 carrying value of the bonds after the interest payment.
- At January 1, 2020, Konerko Corp. issued $40,000,000 of 6%, 12-year bonds that paid interest semiannually on June 30 and December 31. The bonds were issued at $36,788,326 to earn 7%. How much interest expense should Konerko report for these bonds on its income statement for the full year ended December 31, 2020? Please round your answer to the nearest dollar.Madison Corporation is authorized to issue $570,000 of 5-year bonds dated June 30, 2019, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019. Required: Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.) 1. The bonds to yield 12% $fill in the blank 1 2. The bonds to yield 10% $fill in the blank 2BMT Company issued P5,000,000, 12%, 20-year bonds at 102 plus accrued interest on February 1, 2021. The bonds are dated January 1, 2021 and pay interest semi-annually every June 30 and December 31, Transaction costs totaled P50,000. How much accrued interest on the bonds shall BMT Company collect from the investor on February 1, 2021?
