On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the effective rate is 12%. Interest is to be paid semiannually on June 30 and December 31. Assume Canglon uses the effective interest method to amortize the discount.

Q: 1. Costco Wholesale Corporation borrows $640,000 on September 1, 2021. Costco signs a nine- month,…

A: Formula: Interest amount = Notes payable amount x Time period x Interest rate.

Q: On January 1, 2021, Splash City issues $370,000 of 9% bonds, due in 20 years, with interest payable…

A: A BOND ISSUE IS TYPE OF DEBT FORM OF FINANCING ON WHICH INTEREST IS PAID ON FIXED RATE OF THE FACE…

Q: On January 1, 2021, Lyle’s Limeade issues 4%, 10-year bonds with a face amount of $90,000 for…

A:

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: E-Tech Initiatives Limited plans to issue $450,000, 10-year, 5 percent bonds. Interest is payable…

A: please like the answer your response matters  Long term Liabilities:   Bonds Payable $450,000…

Q: On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

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

Q: On November 12, 2021, Jones Corporation borrows money at James National Bank by issuing a $10,000, 3…

A: Discount on note = face value of notes x rate of discount x no. of months/12  =$10000 x 12% x 3/12 =…

Q: on January 1, 2019. Frizz corporation issued $300,000, 8% 5-year bond at 97(a discount of $9000).…

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

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: A Company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of…

A: Interest expense = 114000 x 5% x 6/12 = 2850 bond amortisation = (114000-109870)/8 = 516.25

Q: On January 1, 2019, Tonika Company issued a five-year, $10,000, 8% bond. The interest is payable…

A: Book value:   An asset's book value is equal to its carrying value on the balance sheet, and…

Q: Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of…

A: A note receivable is a promissory note form in which one person promises to pay the money to another…

Q: Legacy issues $610,000 of 6.5%, four-year bonds dated January 1, 2019, that pay interest…

A: Given that, Face value of the bond = $610000 issue price of bonds = $579203 rate of interest = 8%

Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…

A: The question is based on the concept of the issue of securities. As per Bartleby guidelines we are…

Q: Required: Assuming the market interest rate on the issue date is 9%, the bonds will issue at…

A: Date Particulars Debit Credit Jan 1, 2021 Cash Account                                 Dr. $370000…

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A: In this question, information related to bonds was given, on the basis of which we have to make an…

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A: The amortization table is a table of the payments in which all the carrying values of the bonds are…

Q: Jazz Company lends Sullivan Company $30,000 on August 1, 2019 in exchange of a 9-month, 12% interest…

A: 1. Accounting Equation - Accounting Equation is calculated using following equation - Assets =…

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A: Journal entries used to record accounting transactions in chronological order under double entry…

Q: Cubs Corporation issues $530,000​,12​%, 5−yearbonds on January​ 1, 2019 for $489,000. Interest is…

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

Q: on october 1, 2019, Island Jewelry company accepted a 4 -month, 10% note fot $2,400 in settlement of…

A: Note Receivable: A note receivable is a written agreement or promise to receive a specific amount of…

Q: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…

A: Face value of bond = $ 1,900,000                             Issue price of bond = $ 1,641,812…

Q: Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2019, that pay interest semiannually…

A: Journal entries are the entries for all the financial transactions occurred during the period in the…

Q: Burris Corporation is authorized to issue $800,000 of 9% bonds. Interest on the bonds is payable…

A: Date Accounts Titles Debit Credit Apr-01 Cash $8,18,000     Bonds Payable   $8,00,000…

Q: On January 1, 2019, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

A: 1. Calculation for Bonds Issuance Entry  A) Discount on issue of bonds.   = Bonds Issue price-Bonds…

Q: Windsor, Inc. lends Flint industries $43200 on August 1, 2022, accepting a 9-month, 6% interest…

A: The note receivable is prepared for the amount due from the debtors.

Q: Duval Co. issues four-year bonds with a $108,000 par value on January 1, 2019, at a price of…

A: A bond issued at a discount means the contract rate is lower than the market interest rate. The…

Q: December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign…

A: Journal is the book of original entry in which all the financial transactions of the business are…

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

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…