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Q: On January 1 of the current year, Barton Corporation issued 8% bonds with a face value of $91,000.…
A: When bonds are issued at a price less than the face value, then it means bonds are issued at a…
Q: On January 1, a company issued and sold a $320,000, 5%, 10-year bond payable, and received proceeds…
A: Bonds payable means liability incurred in business. There can be long term bonds or short term…
Q: jan 1 a co. issued and sold a 408,000, 9%, 10-year bond payable, and received proceeds of 403,000.…
A: Discount on bonds to be amortized over period of bond
Q: On the first day of the fiscal year, a company issues a $2,000,000, 10%, 9-year bond that pays…
A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…
Q: On the first day of the fiscal year, a company issues a $1,400,000, 10%, 7-year bond that pays…
A: Bond Premium is amortized can be amortized through Straight line method and Effective interest rate…
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 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: 2. On January 1, a company issued and sold a $409,000, 6%, 10-year bond payable, and received…
A: Face value of bonds$409,000Less: Proceed received on issuance of bonds$404,000Discount on bonds…
Q: On the first day of the fiscal year, a company issues a $415,000, 7%, 10-year bond that pays…
A: Premium on Bond Payable = $435,800 - $415,000 = $20,800 Interest is paid semiannually for 10…
Q: On January 1, a company issued and sold a $393,000, 6%, 10-year bond payable, and received proceeds…
A: Introduction: When company issues bonds at discount, then the discount amount can be amortized over…
Q: On January 1, Year 1, Hanover Corporation issued bonds with a $56,500 face value, a stated rate of…
A: Bonds Payable: Bonds Payable is an long term debt issued by the government and company's to raised…
Q: On September 1, Year 1, Parsons Company purchased $84, 000 of 10-year, 7% government bonds at 100…
A: The objective of the question is to journalize the purchase, receipt of interest, and sale of…
Q: On January 1, Year 1, Parker Company issued bonds with a face value of $70,000, a stated rate of…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: Avery Companies Ltd issued $500,000 of 6%, 5 year bonds for $521,880 on January 1, 1877, the day the…
A: a. Record journal entry for issuance of the bond as shown below:
Q: On January 1, $925,000, 5-year, 10% bonds, were issued for $897,250. Interest is paid semiannually…
A:
Q: On the first day of the fiscal year, a company issues a $616,000, 8%, 10-year bond that pays…
A: Cash interest = $24,640 Face value = $616,000Issue Price = $646,800Premium on issue of bond =…
Q: On the first day of the fiscal year, a company issues an $302,000, 8%, 5-year bond that pays…
A: Under the straight line method of amortization, premium or discount of bond need to amortize equally…
Q: On January 1, a company issued and sold a $420.000, 3%. 10-year bond payable, and received proceeds…
A: In order to determine the discount on bonds payable, the amount received from proceeds is required…
Q: On January 1, Year 1, Jones Company issued bonds with a $110,000 face value, a stated rate of…
A: The bonds are the financial instruments for the business. The bonds are issued at discount when…
Q: On March 1, Sullivan Inc. issued $700,000 of 10-year, 11% bonds at an effective interest rate of…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: ome -) () () Statement of Cash Flows (2,000) FA (100) FA/(1,900) OA (2,000) OA (2,000) OA
A: Interest expense is Interest payment less amortization on bonds as the bonds were issued on a…
Q: On the first day of the fiscal year, a company issues an $988,000, 9%, five-year bond that pays…
A: On amortization of bond discount using the straight-line method, the discount is amortized…
Q: On the first day of the fiscal year, a company issues a $8,900,000, 8%, 5-year bond that pays…
A: Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.
Q: On january 1 a company issued and sold a 400, 000 8 % 10 year bond payable and recieved proceeds of…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: Investco issued $30,000 of 6.25% bonds on January 1 at a discount of $2,107. Interest expense…
A: The book value of the bond is calculated by subtracting the unamortized discount from the face value…
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 the first day of the fiscal year, a company issues a (n) $935,000, 7%, 5-year bond that pays…
A: The objective of the question is to journalize the entry for the first interest payment and the…
Q: On January 1, Year 1, Denver Company issued bonds with a face value of $71,000, a stated rate of…
A: Correct Answer:- $5,964…
Q: Best Beans Coffee Company issued bonds with a $270,000 face value on January 1, Year 1. The bonds…
A: The bonds are financial instruments that are issued to raise money from the investors. The bonds are…
Q: On January 1, Year 1, the Diamond Association issued bonds with a face value of $210,000, a stated…
A: The amount of discount on the issue date is determined by deducting the selling value from the face…
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 the first day of the fiscal year, a company issues a $784,000, 6%, 10-year bond that pays…
A: A Issue price $823,800 B Face value $784,000 C=A-B Premium on bonds payable $39,800 D No.…
Q: What is the entry to record the first semiannual interest payment, and the amortization of the bond…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: 500 of its 6%, $1,000 bonds on January 1 of Year 1. The bonds pay cash interest semiannually each…
A: The effective interest method, which is dependent on the object's effective interest rate (EIR), is…
Q: On the first day of the fiscal year, a company issues an $994,000, 7%, 5-year bond that pays…
A: Total discount on bonds issue = Face value of the bonds - Issue value of the bonds = 994000-934400…
Q: On January 1, Year 1, Hackman Corporation issued $600,000 face value 6% bonds dated January 1, Year…
A: The objective of the question is to record the issuance of the bonds and the first two interest…
On January 1, a company issued and sold a $490,000, 3%, 10-year bond payable, and received proceeds of $484,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is:
A. $483,700.
B. $484,600.
C. $489,700.
D. $484,300.
E. $490,000.
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- On the first day of the fiscal year, a company issues a $8,400,000, 12%, 8-year bond that pays semiannual interest of $504,000 ($8,400,000 × 12% × ½), receiving cash of $8,839,411. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.On January 1, Year 1, Kenneth Cole Inc. issued $2,000,000, 5%, 10-year bonds, with interest payable on June 30, and December 31 to yield 6%. The bonds were issued for $1,851,234. : Given the above information, Prepare the amortization schedule for Year 1 and Year 2 using the effective interest rate method. Use the following format and round figures to nearest dollar. Date Cash Paid Interest Exp Amortization Bond Carrying ValueAnswer full question.
- On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays semiannual interest of $147,000 ($4,900,000 × 6% × ½), receiving cash of $4,440,130. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.On January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is payable annually on December 31. The bonds were sold to yield an effective interest rate of 6 percent. Twain uses the effective interest rate method. The bonds sold for $574,368. Requireda. Prepare the journal entry for the issuance of the bonds.b. Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. (Assume effective interest amortization.)c. Prepare the journal entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. (Assume straight-line amortization.)d. Calculate the amount of interest expense for Year 2. (Assume effective interest amortization.) e. Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.)In January of this year, Bottlebrush Company issues a $1,000,000, 6%, 8 year bond that pays semiannual interest of $31,000 receiving cash of $850,000 Required: Journalize the first interest payment along with the amortization of the bond discount (use the straight line method)
- Franklin corporation issues $84,000, 8%, 5-year bonds on January 1, for $87,780. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to b recognized on July 1 is O a. $3,738 O b. $6,720 Oc. $3.360 d. $2,982On January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond that pays semiannual interest of $135,000 ($2,250,000 x 12% x ½), receiving cash of $2,379,360. Required: Journalize the first interest payment and the amortization of the related bond premium. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.On January 1, $877,000, five-year, 10% bonds, were issued for $850,690. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize the discount on bonds payable, the semiannual amortization amount is a.$43,850 b.$26,310 c.$2,631 d.$5,262
- On the first day of the fiscal year, a company issues a $896,000, 7%, 10-year bond that pays semiannual interest of $31,360 ($896,000 x 7% x 1/2), receiving cash of $940,800. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank.Diaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated interest rate of 7 percent and a five-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 98. The straight- line method is used for amortization. Required a. Use a financial statements model to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31, Year 1, recognition of interest expense, including the amortization of the discount and the cash payment, affect the company's financial statements. b. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 1. c. Determine the amount of interest expense reported on the Year 1 income statement. d. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, Year 2 e. Determine the amount of interest expense reported on the Year 2 income statement. Complete…On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds of $396,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: Multiple Choice Debit Bond Interest Expense $13,800; debit Discount on Bonds Payable $200; credit Cash $14,000. Debit Bond Interest Expense $28,000; credit Cash $28,000. Debit Bond Interest Expense $14,200; credit Cash $14,000; credit Discount on Bonds Payable $200. Debit Bond Interest Expense $14,000; credit Cash $14,000.
