In the google form, provide the interest income to be recorded on that same day.
Q: Ellis Company issues 6.5% , five-year bonds dated January 1, 2019, with a $570,000 par value. The…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.…
Q: On January 1, 2021, for $18 million, Monument Company purchased 10 year, 10% bonds, dated January 1,…
A: The bonds purchased are reported as assets in the balance sheet. The interest revenue for bonds is…
Q: On July 1, 2023, Riverbed Aggregates Ltd. purchased 6% bonds with a maturity value of $125,000 for…
A: A journal entry is a basic accounting record that is used to chronologically track financial…
Q: On January 2, 2020, Progresso Inc. purchased $150,000 of Cambells Corporation bonds at a discount of…
A: When the stated interest rate of the bond is less than the market interest rate then the bond is…
Q: On January 1, 2023, Marigold Corporation purchased a newly issued $1,250,000 bond. The bond matured…
A: Bonds refer to the financial instrument issued by the bank or financial institution at a specified…
Q: Record the purchase of the bonds. 2. Prepare an investment interest income and discount amortization…
A: 1. Below is the Journal Entry for the Purchase of the Bonds Date Particulars Debit Credit…
Q: nterest at 6% every June 30 and December 31. The market interest rate 31, and the company had the…
A: The amortization cost model provides insight into how bond prices change over time due to the…
Q: On January 2,2019, Silver Company invested in a 4-year 10% bond with a face value of $3,000,000 in…
A: Face value=$3,000,000 Coupon rate=10% Bond value at the time of sale, when interest rate=12%…
Q: On June 1, 2021, NEX Company received ₱1,077,200 plus accrued interest for 12% bonds with face…
A: "Since you have asked multiple question we will solve the first three sub part question for you. If…
Q: ld Corp. uses the amortized cost method (effective interest method) when accounting for debt…
A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…
Q: On August 1, 2021, Excel Company purchased at par P5million bonds with stated interest rate of 12%…
A: Lets understand the basics. We all know that bond can be purchased at the issue time or at mid of…
Q: Volunteer Inc. issued bonds with a $700,000 face value, 10% interest rate, and a 4-year term on July…
A: Annual interest payment = Face value of bonds x rate of interest x Year = $700,000 x 10% = $70,000
Q: On January 1, 2023, Ayayai Limited pays $110,522 to purchase $125,000 of Chan Corporation 7% bonds.…
A: The price of a bond is equal to the sum of the present value of the coupon payments and the present…
Q: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with face…
A: Bonds Payable It is the amount owed to bond holders by the issuer and is a liability account
Q: The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight…
A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On 2/1/2012, the Union Company issued an amount of 1,500,000 dinars in the form of bonds with a…
A: Callable bonds are those bonds which can be called by the company, at any time prior to maturity,…
Q: Identify: Investment in Bonds as of acquisition Interest income for the year Unrealized Holding…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…
A: 1. Workings: 600,000*7%*6/12= 21,000 Interest paid= 6% interest on carrying value for 6 months…
Q: Spring Company sells $250,000 of 6%,15-year bonds for 56.886 on April 1,2021.The market rate of…
A: Bonds payable is one of the liability being incurred in business. It can be long term bonds or short…
Q: On July 1, 2023, DDJ Limited issued bonds with a face value of $900,000 due in 20 years, paying…
A: Bonds are issued below the face value than this is dicount and this is due to the higher interest in…
Q: Sciamanna Corporation issued $500,000 of 6%, 10-year bonds payable on January 1, 2022. The market…
A: The cash borrowed on January 1, 2022 would be present value of interest annuity & maturity…
Q: On January 1, 2022, Nine Company sold 12% bonds with a face value of P500,000. The bonds mature in…
A: A bond is a long-term financing debt. Interest (called a coupon) is paid periodically on the bond to…
Q: On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay…
A: Answer:- Bond meaning:- An IOU-like debt security called a bond. Bonds are issued by the borrowers…
Q: n January 1, 2023, Liu Corporation paid $245,928 to acquire bonds of Singh Investment Corp with a…
A: When market interest rate are below the coupon rate than bond trade on premium and that premium…
Q: Unrealized holding gain/(loss) in OCI for year 2014 2. Interest expense for the year ended December…
A: Unrealized holding gain/(loss) is the term used to describe a change in an investment's value that…
Q: Tahoe Tent Ltd. issued bonds with a par value of $803,000 on January 1, 2023. The annual contract…
A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…
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 January 1, 2022, Lenore Corp. purchased $400,000 of 6% bonds for $427,750, which they are…
A: Journal entries refer to the recording of business transactions in the format of debt and credit…
Q: On Jan. 1, 2021, ABC bought serial bonds with a face value of P2,400,000 for P2,160,000 cash. The…
A: Given: The value includes face value of P2,400,000 for P2,160,000 cash. It will be paid in…
Q: compute the present value of interest and the principle amount
A: Present value is the sum of present value of future cashflow discounted with the required rate of…
Q: On January 1, 2020, Aspin Company purchased $1,200,000, 14% bonds of Bulldog Company for $1,381,934,…
A: If the financial asset is measured at amortized cost, on the subsequent reporting date, the…
Q: On January 1, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…
A: A journal entry is used to document any commercial transaction in the accounting records of a…
Q: On January 1, 2021, Mega Corporation purchased P1,000,000, 12% bonds for P1,065,000, a price that…
A: Introduction: Debt funds invest in assets that provide fixed interest, such as corporate bonds,…
Q: On March 1, 2021, Navy Corporation used excess cash to purchase U.S. Treasury bonds for $103,000…
A: U.S. Treasury bonds are debt securities issued by the United States Department of the Treasury to…
Q: On January 1, 2023, Marin Corporation purchased a newly issued $1,325,000 bond. The bond matured on…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On May 1, 2021, Bramble Corp. purchased $1,580,000 of 12% bonds, interest payable on January 1 and…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On January 1, 2021, for $18 million, Monument Company purchased 10 year, 10% bonds, dated January 1,…
A: Semiannually interest receipt = Face value of bonds x rate of interest x 6/12 months = $20,000,000 x…
Q: On February 18, 2021, Union Corporation purchased 1,311 IBM bonds as a long-term investment at their…
A: Journal entries are the primary reporting of the transactions in the books of accounts. These are…
Q: On January 1, 2023, Marigold Corporation purchased a newly issued $1,250,000 bond. The bond matured…
A: Bond price is the current market value of a bond, determined by discounting all its future cash…
Q: On May 1, 2021, Bramble Corp. purchased $1,580,000 of 12% bonds, interest payable on January 1 and…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On May 1, 2018, ABC Corporation purchased $1,500,000 of 12% bonds, interest payable on January 1 and…
A: A bond is an instrument of raising funds. It has a fixed interest rate which is the paid by the…
Q: on December 31, 2023 and carry a 13% interest rate. Interest is receivable annually on December 31.…
A: Bonds, also known as fixed income instruments, are a typical way for governments and companies to…
On Jan. 1, 2021, ABC purchased bonds for the purpose of both collecting the contractual cashflows and selling the investment. The bonds have a total face value of P6,000,000, interest rate of 8% payable every August 1, and a remaining term of 4 years and 7 months. It paid P6,145,000 inclusive of accrued interest and transaction fee of P50,000. As of the end of the year, the bonds have a fair value of P5,960,000. What is the compound
Step by step
Solved in 3 steps
- On January 1, 2024, Rupar Retallers purchased $100,000 of Anand Company bonds at a discount of $6,000. The Anand bonds pay 6% interest but were purchased when the market interest rate was 7% for bonds of similar risk and maturity. The bonds pay interest semiannually on June 30 and December 31 of each year. Rupar accounts for the bonds as a held-to-maturity Investment, and uses the effective interest method. In Rupar's December 31, 2024, journal entry to record the second period of Interest, Rupar would record a credit to interest revenue of Multiple Choice O O $3,000 $3,500 $1.300At the beginning of the current year, Candice Company acquired bonds with face amount of P3,000,000 at a cost of P2,820,750. The bonds are held for trading. Bonds pay interest of 12% semiannually on January 1 and July 1 and mature on January 1, 2023. The bonds have an effective yield of 14% and are quoted at 105 at year end. What is the carrying amount of the investment at the end of the current year?Explain the Hedging against cash flow risk.
- On March 1, 2022, Havenford Corporation issued $240,000, 4 year, 6% bond. Interest is to be paid semi-annually September 1 and March 1. The market rate for similar bonds was 5% at the time the bonds were sold. Havenford Corporation has a April 30 year end and uses the effective interest method to amortize any discount or premium.On September 2, 2024, Havenford redeemed 48% of the face value of these bonds at 101 and retired them.1. Calculate the PV of the bonds 2. Complete the amortization table using the effective interest method. 3. Record the following journal entries in the table below. i) Prepare the journal entry to record the issuance of the bond. ii) Prepare the journal entry to accrue the bond interest at corporate year end. iii) Prepare the journal entry to record the first interest payment. iv) Prepare the journal entry for the retirement of the bonds. Please do it properly correctly and with all the steps or calculations Kindly do it right i need a special expert for this…On January 1, 2021, Paraguay Company purchased P3,000,000 face amount, 9% bonds. The bonds were purchased to yield 8% interest. The bonds mature on January 1, 2026, and pay interest annually on December 31. The entity used 2 decimal places for the PVF. The fair value of the bonds on December 31, 2021, is P3,150,000. The fair value of the bonds on December 31, 2022, is P3,267,500. If measured at FVOCI, how much is the Unrealized gain on change in fair value-OCI, December 31, 2022 (round-off answer to the nearest peso value)?On January 1, 2023, Toyota Corporation purchased a newly issued $1,025,000 bond. The bond matured on December 31, 2025, and paid interest at 6% every June 30 and December 31. The market interest rate was 8%. Toyota's fiscal year-end is October 31, and the company had the intention and ability to hold the bond until its maturity date. The bond will be accounted using the amortized cost model.Click here to view Table A.2 - PRESENT VALUE OF 1 - (PRESENT VALUE OF A SINGLE SUM)Click here to view Table A.4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (a) Calculate the price paid for the bond using a financial calculator or Excel functions. (Round answers to 2 decimal places, e.g. 52.75.) b) Prepare an amortization schedule for the bond. (Round answers to 2 decimal places, e.g. 52.75.) c). Prepare the journal entries on the books of Toyota Corporation for each of the following dates. (Round answers to 2 decimal places, e.g. 52.75. Credit account titles are automatically indented when the…
- On June 1, 2024, Everly Bottle Company sold $3,000,000 in long-term bonds for $2,631,317. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Instructions (a) Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first four years. Make sure all columns and rows are properly labeled. (Round to the nearest dollar.) (b) The sales price of $2,631,317 was determined from present value tables. Specifically, explain how one would determine the price using present value tables. (c) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2026. (Round to the nearest dollar.)On January 1, 2023, Teal Corporation purchased a newly issued $1,425,000 bond. The bond matured on December 31, 2025, and paid interest at 6% every June 30 and December 31. The market interest rate was 8%. Teal's fiscal year-end is October 31, and the company had the intention and ability to hold the bond until its maturity date. The bond will be accounted using the amortized cost model. Click here to view Table A.2 - PRESENT VALUE OF 1- (PRESENT VALUE OF A SINGLE SUM) Click here to view Table A.4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 (a) X Your answer is incorrect. Calculate the price paid for the bond using a financial calculator or Excel functions. (Round answers to 2 decimal places, e.g. 52.75.) PV $ -1062917.95 4On January 1, 2019, Rodgers Company purchased $200,000 face value, 10%, 3-year bonds for $190,165.35, a price that yields a 12% effective annual interest rate. The bonds pay interest semiannually on June 30 and December 31. Required: 1. Record the purchase of the bonds. 2. Prepare an investment interest income and discount amortization schedule using the effective interest method. 3. Record the receipts of interest on June 30, 2019, and June 30, 2021.
- On January 1, 2020, Lizzo Construction sold $750,000 of 6% bonds to Swift Enterprise. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity, the market yield was 8%. Interest is paid semiannually on June 30 and December 31. Swift Enterprise purchased the bonds as an investment and plans to hold the bonds for approximately 2 years. The fair value of the bonds at 12/31/20 was $850,000. Swift's fiscal year end is December 31 and 2020 was its first year of business. Required: 1. Prepare the fair value adjusting entry for Swift Enterprise as of 12/31/20. Show your work. | 2. Show or describe exactly and specifically what will appear on the Balance Sheet of Swift Enterprise as of 12/31/20, related to these bonds. 3. Show or describe exactly and specifically what will appear on the Income Statement of Swift Enterprise for the year ending 12/31/20.On January 1, 2024, White Water issues $490,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 7% and the bonds issued at $535,061. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $529,343 on December 31, 2026. (Round your final answers to the nearest whole dollar.)On January 1, 2021, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $210,000. The Cortland bonds have a stated interest rate of 10%. Interest is paid semiannually on June 30 and December 31, and the bonds mature in 10 years. For bonds of similar risk and maturity, the market yield on particular dates is as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.): January 1, 2021 11.0 % June 30, 2021 12.0 % Required:1. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2021 (ignoring brokerage fees), and prepare a journal entry to record the purchase.2. Prepare all appropriate journal entries related to the bond investment during 2021, assuming Ithaca accounts for the bonds as a held-to-maturity investment. Ithaca calculates interest revenue at the effective interest rate as of the date it purchased the bonds.3. Prepare all appropriate…
