On January 1, 2003, $50,000 of 20-year, 6 percent debentures were issued for $56,275.20. Interest payment dates on the bonds are January 1 and July 1. The amount of premium to be amortized on July 1, 2003, when using the straight-line method is a. $313.76. b. $156.88. c. $776.50. d. $93.11.

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A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

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A: 16) Premium on bonds = Proceeds from issuance of bonds - Value of bonds with interest Interest…

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A: Par value of the bond = $294,000 Redemption value = $294,000 * 104% = $305.760 Carrying value of the…

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A: Bonds payable means liability incurred in business. There can be long term bonds or short term…

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A: Here in this question, we are required to make journal entry for interest payment and discount…

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A: Bonds are the financial instrument that is issued by the corporates to gather the debt funds from…

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A: Face value $    2,650,000Coupon rate12.00%per yearEffective rate10.00%per yearCarrying value as on…

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A: A bond is a debt security representing a loan made by an investor to a borrower, typically a…

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A: The discount on bonds arises when the market offers higher interest earnings than the bonds. The…

Q: 5. The long-term debt section of Holt Company's statement of financial position on December 31, 2010…

A: Bond Valuation: This is the process of determining how much a bond is worth. It involves guesswork…

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

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A: Amount received on bonds = Face value of bonds*102%

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A: The bonds payable are the long-term liabilities of the business. The bonds are issued at premium…

Q: PB5. LO 13.3Dixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term…

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

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A: When the stated rate of interest of 8% is less than the market rate of interest of 10%, the bonds…

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Q: am. 105.

A: The first step in journalizing the entry is to understand the transaction. Smiley Corporation issued…

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A: Here in this question, we are required to make entry for issuance of bond at discount and first…

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A: The bonds are issued to raise the money from the market or investors. The bonds are issued at…

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A: Proceeds from redemption  = $294,000 * 98/100 = $288,120

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A:

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A: When the bonds are issued at less than their face value, it is said that the bonds are issued at…

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A: As per US GAAP, Interest on financial Liability is to be booked using the amortized cost method,…

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A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

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A: A bond is a borrowing security issued by a company to raise funds from the market by making an…

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A: Bonds are financial instruments that reflect loans made by investors to borrowers, who are often…

Q: am. 138.

A: Step 1: Understanding of amortization method for discount or premium on issue of bonds:- When bond…

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A: Bonds are the obligation for an entity. These are issued for raising funds from the market. These…

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A: Bond is debt instrument used by organizations to raise debt funds from public. Bondholders are paid…

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A: Cash Payment of Interest = Face Value * Stated rate of InterestInterest Expense = Carrying Value *…

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A: Loss on redemption of bonds = Total amount paid - Face value of bonds retired - Unamortized Premium…

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A: The bonds are issued to raise money from the investors or market for financial requirements of…