On January 1, 2018, Fort Industrial Corp. issued bonds with a face value of $1,000,000. The bonds have a coupon interest rate of 5%, payable each July 1 and January 1. Instructions (a) Prepare the journal entry for the issue, assuming the bonds are issued at 98.5. (b) Prepare the journal entry for the issue, assuming the bonds are issued at 104.5.

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,400 million on…

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

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: January 1, 2024, Nurses Credit Union (NCU) issued 7%, 20-year bonds payable with face value of…

A: The retirement of a bond is the repayment of bond at maturity. The principal is repaid and the…

Q: On January 1, 2014, Blossom World issued bonds with a face value of $160,000. The bonds carry a…

A: The journal entries are very important because this is the first step where a business transaction…

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 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: 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, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On January 1, 2017, Surreal Manufacturing issued 780 bonds, each with a face value of $1,000, a…

A: As per the honor code, we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit…

Q: On January 1, Year 1, Parker Company issued bonds with a face value of $65,000, a stated rate of…

A: Bond is a financial instrument which is issued by the large organization to raise the funds. Bonds…

Q: On January 1, 2022, Broncos Universal issued 12% bonds dated January 1, 2022, with a face amount of…

A: Bond Price :— It is sum of present value of periodic interest payment and face value amount.    If…

Q: On January 1, 2018, Thomas Company issued $100,000, 5-year, 12% bonds, with interest payable…

A: Bond is a financial instrument used to raise funds from public by various companies or institutions…

Q: Nocioni Company issued $1,000,000 of bonds on January 1, 2010. Instructions   Prepare the journal…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: On January 1, 2018, Watch Works Incorporated (wWI) issued $77,000 par value, 8%, four-year bonds…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: terest expense shown on Jones' income statement for the year ending December 31, Year 1?

A: When bonds are issued at a discount , the total interest expense is the cash interest expense plus…

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: Prepare journal entries for the following transactions.

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…

A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…

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: 2 January 2018, MAYA Bhd issued RM1,500,000 of 10% bond at 106.231 with market interest 11% due 31…

A: Bonds are the securities issued by a business entity in order to raise funds for its business…

Q: On January 1, Year 1, Young Company issued bonds with a face value of $119,000, a stated rate of…

A: Bond payableThe bonds are treated as long-term liabilities for the business. The bonds are issued at…

Q: The situations presented here are independent of each other. For each situation, prepare the…

A: given that, face value of bonds redeemed = $168000 rate if interest = 14.5%  carrying value of the…

Q: On January 1, Year 1, Wayne Company issued bonds with a face value of $635,000, a 5% stated rate of…

A: Income statement is prepared with a view to ascertain the earnings of an entity over a specific…

Q: Martinez Ltd. issued a $1,060,000, 10-year bond at par on January 1, 2023. The bond paid 10%…

A: Journal entry is required to make to record event and transaction that are occured during particular…

Q: Romania, Inc., issues 6%, 10-year bonds with a face amount of $60,000 for $55,736 on January 1,…

A: 1. Record the bond issue. Date Accounts & Explanation Debit Credit Jan 1, 2012 Cash $…

Q: On June 30, Kelce Koolers issues 7%, 18-year bonds payable with a face value of $86,000. The bonds…

A: Bonds are instrument issued by company acknowledging the debt raised by company. It is a liability…

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July…

A:

Q: Crane Company issued $310,000,6%,10-year bonds on January 1, 2022, for $333,936. This price resulted…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: January 1, 2024, Nurses Credit Union (NCU) issued 5%, 20-year bonds payable with face value of…

A: Bonds The type of securities that are sold by corporations and governments to raise money from…

Q: Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on…

A: When the bonds are issued at more than their par value it means that it has been issued at the…

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 each for $104,000. The…

A: Journal entries are passed following the golden rules of accounting  Debit all assets and expenses…

Q: On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a…

A: Cash Interest=Face Value×Interest rate=$560,000×3%=$16,800

Q: 1. Prepare a bond amortization schedule. 2-5. Prepare the journal entries to record the bond issue,…

A: "Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: On January​ 1, 2018​,  Lane Unlimited issues 15​%, 10​-year bonds payable with a face value of…

A: 1) Premium on bonds payable = 1800 bonds * $5 = $9,000 It has to be amortised over the life of bonds…

Q: For each of the following three examples, provide the journal entry that the company would make on…

A: Issue price of the bonds = Present value of principal + Present value of interest payments = (Face…

Q: On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…