On January 1, 2013, Jones Inc. issued a $100,000 face value bond for proceeds of $97,654. On June 30, 2013, Jones sent checks to the bondholders for the first coupon payment on the bond.
Q: . Identify and analyze the effect of the interest payment on October 1, 2017. nctivity Financing X…
A: Bonds: It refers to the debt instruments issued by the firm to borrow funds from the public by…
Q: On May 1, 2020, Forest Company issued 3,000 $1,000 bonds at 102. Each bond was issued with one…
A: Market Value of Warrants = No. of bonds x fair value = 3,000 x $30 = $90,000 Market Value of Bonds…
Q: On 09-01-15, O issued $8,000,000 of its 6%, 5-year callable term bonds dated 09-30-15. The bonds pay…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing…
Q: On July 1, 2013, AC Corporation issued one thousand of its 10%, P1,000 callable bonds for P960,000.…
A: Total discount on bonds = Face value of bonds - issue value = P1000000 - 960000 = P40,000
Q: On January 1, 2013, JetNew Corp. issued $300,000 of 8%, 5-year bonds, with annual interest payments…
A: Journal Entry :— It is an act of recording transaction in books of account when transaction…
Q: Nicholas Ram Corporation have a $1,500,000 "bond issue" dated March 1, 2016 due in 15 years with an…
A: The premium on the bond is the difference between the selling price and the face value of the bond.…
Q: On July 1, 2020, Tealight Company issued 2,000 $ 1,000 bonds at 103. Each bond was issued with one…
A: The process of recording financial activity for the first time in the books of accounts is known as…
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: LaTanya Corporation is planning to issue $100,000 seven-year, 8% bonds. Interest is payable each…
A: In the general ledger of an accounting system, a journal entry is a record of a financial…
Q: Microsoft Company sells $500,000 of bonds on January 1 2014. The face value is 10% interest paid…
A: Bond is debt instrument used by organizations to raise debt funds from public. Bondholders are paid…
Q: Homer Company borrowed money by issuing $5,500,000 of 5% bonds payable at 101.3 on July 1, 2021. The…
A: The bonds are issued at a premium when the bond offers more interest earnings than the market. The…
Q: the first interest payment on June 30, 2025, what is the balance of Discount on Bonds Payable?…
A: Discount on bond Payable means the bond issued at a less amount from its face value. The journal…
Q: On January 1, 2018, Rupar Retailers purchased $100,000 of Anand Company bonds at a discount of…
A: Bond issuance is an act in which bond securities are provided by the company in return for cash or…
Q: On January 1, 2017, Babb Trailers, Inc. issued $6,500,000 of par value bonds for $6,200,000. The…
A: Total discount on issue of bonds = Face value of bonds - Issue value = $6,500,000 - $6,200,000 =…
Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: January 1, 0,000, 4%, 10-year bond that pays semiannual int 6 x 1/2 year), receiving cash of…
A: Bond investing provides a consistent income stream, capital preservation, and portfolio diversity.…
Q: Nos. 10-16 pertains to the following: Manabo Company issued ten thousand P1,000 bonds on January 1,…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On December 31, a $1,950,000 bond issue on which there is an unamortized discount of $70,500 is…
A: Journal entry is generally used to record the different kind of business transactions in the…
Q: On January 1, 2017, Carla Vista Company redeemed $470,000 of bonds at 103. At the time of…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Medhurst Corporation issued $86,000 in bonds for $83,400. The bonds had a stated rate of 8% and pay…
A: Interest expense is a non-operating expense shown on the income statement. It represents interest…
Q: Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $60,000 on January 1,…
A: Given the following information: Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of…
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: On Jan. 1, Year 1, Nadal Inc. issued 100 bonds with a face value of $1,000 each for $103,500. The…
A: In the given case, Nadal Inc issued 100 bonds with a face value of $1000 each at a premium of $35.…
Q: On January 1, 2018, Fort Industrial Corp. issued bonds with a face value of $1,000,000. The bonds…
A: Bonds are the instrument acknowledging debt due from one party to another party on specified future…
Q: Crane Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock…
A: Step 1: Calculate the total cash received from selling the bonds and the total value of the…
Q: On January 1, 2017, Babb Trailers, Inc. issued $6,500,000 of par value bonds for $6,200,000. The…
A: Solution:- The amount of interest expense recognized by Babb Trailers, Inc. on the bond issue for…
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: Hello,Can I please get help for the following question?A company issued a $3.9M face amount bond on…
A: Total Discount allowed on issuance of Bonds = 362000Life of Bonds (i.e. Interest periods) = 10…
Q: On January 1, Solofind, Inc. issued a 10-year monthly bond with a face value of $1,760,000 that pays…
A: Bonds are referred to as debt instruments which represents the loans made to the borrower and…
Q: much should be recorded for Discount (or Premium) on Bonds Payable? (Enter an amount. Please do not…
A: Journal: Journal is considered as a book of original entry because all the transactions that have…
Q: 2. On October 1, 2011, Sammy Company issued 8,000,000 of its 10-year 8% term bonds dated October 1,…
A: c. 112,471.65 Balance of Discount on Bonds Payable on December 31,2020
Q: Malcolm Company borrowed money by issuing $2,500,000 of 7% bonds payable at 102.7 on July 1, 2021.…
A: Journal Entry :— It is an act of recording transactions in books of account when transaction…
Q: Please give me answer
A: Part 1:Computation of issue price of bonds as follows:Resultant values:Part 2:Computation of…
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 December 31, a $2,300,000 bond issue on which there is an unamortized discount of $107,500 is…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Milliken Industries Inc. issued a bond on January 1, 2015, paying interest on June 30 and December…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Stephanie Ram Corporation have a $1,120,000 "bond issue" dated February 1, 2016 due in 10 years with…
A: a) Issuance of the Bond on April 1, 2016Debit: Cash ($1,078,700)Credit: Bonds Payable…
Q: A company issued $500,000 of bonds for $498,351. Interest is paid semiannually. The bond markets and…
A: if bond is issued at lower value and redeemed at premium it is said to be issued at discounthere in…
Q: Company E issues $300,000 worth of 7.5% bonds on January 1, 20x2, which will mature on December 31,…
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: On January 1, Year 1, Young Company issued bonds with a face value of $108,000, a stated rate of…
A: The bonds are treated as long term liabilities for the business. The bonds are issued at premium…
Q: Nicholas Ram Corporation have a $1,700,000 "bond issue" dated March 1, 2016 due in 15 years with an…
A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…
Q: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…
A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…
Q: On Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,020 for $126,300. The…
A: JOURNAL ENTRIES Journal entries is the Process of Recording all Financial & Non Financial…
Q: On March, 1, 200B, ABC Corp. sold 800,000 8% bonds dated Jan. I, 2008 for $824,000. This bond pays…
A: Bonds are a liability of the firm so they are recorded on credit side , whole when they are issued…
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- On January 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a coupon rate of 6 percent. The bonds mature in 10 years and pay interest annually every December 31. The total issue price of the bonds is $173,160. The company uses the effective-interest amortization method. Prepare all journal entries under this bond arrangement for the first year. In the journal entries, put bond discounts in separate accounts.Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $83,000,000 of five-year, 8% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar.The Reagan Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2014, at 92. The journal entry to record the issuance will show a: credit to Discount on Bonds Payable for $80,000. credit to Cash for $920,000. debit to Cash of $1,000,000. debit to Cash of $1,000,000.
- On January 1, 2018, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with face value of $600,000. The bonds pay interest on June 30 and December 31. Read the equirementsBonita Corporation issued 1,900 $1,000 bonds at 102. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 99, and the warrants had a market price of $40. Use the proportional method to record the issuance of the bonds and warrants. (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 o for the amounts. Do not round intermediate calculations. Round your answers to O decimal places, e.g. 5,125.) Account Titles and Explanation Debit CreditWare Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $37,000,000 of three-year, 11% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. The amount of the bond interest expense for the first year. Do not round intermediate calculations. Round your final answer to the nearest dollar.
- Medhurst Corporation issued $89,000 in bonds for $86,000. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the first interest payment? If an amount box does not require an entry, leave it blank.On January 1, Applied Technologies Corporation (ATC) issued $590,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 11 percent. When the bonds were issued, the market interest rate was 11 percent. The bonds pay interest once per year on December 31. Required: 1. Determine the price at which the bonds were issued and the amount that ATC received at issuance. 2. & 3. Prepare the required journal entries to record the bond issuance and the first interest payment on December 31 assuming no interest has been accrued earlier in the year.Stephanie Ram Corporation have a $880,000 "bond issue" dated February 1, 2016 due in 10 years with an annual interest rate of 12%. Interest is payable February 1 and August 1. On April 1, 2016, the bond was sold for $826,900 plus accrued interest. Using the straight-line method, prepare the general journal entries for each of the following: a) The issuance of the bond on April 1, 2016. b) Payment of the semi-annual interest and the amortization of the discount on August 1, 2016. c) Accrual of the interest and the amortization of the discount on December 31, 2016. d) Payment of the semi-annual interest and the amortization of the discount on February 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, eg. 5,275.25.) Date Account Titles and…
- HareshOn Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,080 for $132,600. The bonds had a stated rate of 8% and paid interest semi-annually. What is the journal entry to record the issuance of the bonds? If an amount box does not require an entry, leave it blank. Jan. 1On July 1, 2018, Mason & Beech Services issued $33,000 of 10% bonds that mature in five years. They were issued at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On December 31, 2018, what is the total amount paid to bondholders?