On January 1, 2019, Salt Mine Corporation purchased at par 8% bonds having a maturity value of $250,000. The bonds are dated January 1, 2019, and mature January 1, 2024, with interest received on January 1 of each year. The bonds are classified in the held-to-maturity category.Instructions(a) Prepare the journal entry at the date of the bond purchase.(b) Prepare the journal entry to record the interest revenue on December 31, 2019.(c) Prepare the journal entry to record the interest received on January 1, 2020.

Q: Ellis Company issues 6.5% , five-year bonds dated January 1, 2019, with a $570,000 par value. The…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.…

Q: Marin Corporation issued $468,000 of 6% bonds on May 1, 2025. The bonds were dated January 1, 2025,…

A: A bond is a fixed-income instrument that is used to raise capital by organizations. Bonds are issued…

Q: On January 1, 2019, Charlie Company. issued its 10 percent bonds in the face amount of P1,500,000.…

A: The bonds payable are issued at discount when market rate is higher than the coupon rate of bonds…

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year bonds dated…

A: The bonds are the financial instruments that are issued to raise the funds from the market or…

Q: Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2.…

A: Under the Straight line method, a Bond premium or discount is amortized equally over the bond term…

Q: On January 1, 2019, company acquired 2,000,000 face amound bonds dated January 1, 2022. The bonds…

A: Introduction' Bond is a investment securities that is issued by company where investors lends money…

Q: On July 1, 2020, Martinez Corporation purchased at par 6% bonds having a maturity value of $350,000.…

A: Interest revenue = Debt investment x interest rate x no. of years = 350,000 x 6% x 1 = $21,000

Q: Sheridan Company issued $279,000, 9%, 15-year bonds on December 31, 2021, for $267,840. Interest is…

A: In the given question we need to prepare the journal entries for following: (a)The issuance of the…

Q: On January 1, 2025, Flounder Company purchased 8% bonds having a maturity value of $200,000 for…

A: Debt investment seems to be a sort of investment within a corporation or project that involves…

Q: On January 1, 2020, Pearl Company purchased at par 8% bonds having a maturity value of $270,000.…

A: Journal Entry: It involves keeping the records of all financial transactions of an entity. which…

Q: On January 1, 2025, Oriole Company purchased at par 8% bonds having a maturity value of $260,000.…

A: Bonds means the instrument where the bond holder gives money to bond issuer and in return bond…

Q: On January 1, 2019, Calvert Company issues 11%, $100,000 face value bonds for $103,587.53, a price…

A: Lets understand the basics.Premium of discount on issue of bond can be amortized using,(1) Effective…

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: Simko Company issued $670,000, 10-year, 4 percent bonds on January 1, 2021. The bonds were issued…

A: When, the debentures are issued at less than par value, it is has been issued at discount. The…

Q: Nabil Company issued $1,500,000 of bonds on January 1, 2020.   Instructions   Prepare the journal…

A: The word redemption seems to have various purposes in the financial and business world, depending on…

Q: Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2019, that pay interest semiannually…

A: Since there are multiple sub parts, the calculation will be given for first three sub parts. To get…

Q: Simko Company issued $800,000, 10-year, 6 percent bonds on January 1, 2021. The bonds were issued…

A: "Bonds" are debt securities issued by governments, cities, or companies when they need to raise…

Q: Mitchell Inc. received $568,547 from the issuance of 600, 6%, $1,000 bonds on January 1, 2020. The…

A: First, let's compute if there's a discount or premium on the bonds issued. Get the difference…

Q: On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay…

A: Answer:-  Bond meaning:- An IOU-like debt security called a bond. Bonds are issued by the borrowers…

Q: Deleau Equipment Ltd. issued 11%, five-year bonds with a face value of $80,240,000 on October 1,…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On 01 March 2019, Bogota Limited issued $75,000 of 12%, Five year bonds at 110. The bonds were dated…

A: The objective of the question is to record the journal entries for the issuance of bonds, payment of…

Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.

Q: If the company issued RO 100,000 , 5% interest, 10-year bonds at 98 on January 1, 2021, which of the…

A: Answer Bond issued = RO98 Face value per BOND = RO100 Discount price per BOND = (RO100 - RO98) = RO2…

Q: On June 30, 2021, Arlington Company issued $2,100,000 of 10-year, 3% bonds, dated June 30, for…

A: The bonds are the financial instruments that are used to raise money from the market.

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

A: The amortization of premium on bond issue decreases the carrying value of bond payable and the…

Q: Polk Incorporated issued $200,000 of 13% bonds on July 1, 2019, for $206,801.60. The bonds were…

A: The following computations are done for Polk Incorporation.

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: On May 1, 2021, Ligertwood Co. issued P5,000,000, 10%, three-year bonds to yield 8%. The bonds pay…

A: Bond is a debt security which carries a fixed interest rate. The fixed interest rate is known as…

Q: Prepare journal entries to record the following transactions relating to long-term bonds of Kirby,…

A: INTRODUCTION: An entity's interest expense is the cost of borrowing money. On the income statement,…

Q: On January 1, 2020, Marin Company purchased at par 7% bonds having a maturity value of $370,000.…

A: Date Particulars Debit Credit a. Investment in 7% bonds $370,000     Cash   $370,000   (to…

Q: Laudie Company issued $400,000 of 5%, 10-year bonds on January 1, 2020, at 94. Interest is payable…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: On January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $5,000,000 .…

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

Q: On J anuary 1, 2019, kelly Corporation acquired bonds wiili a face value of $500,000 for $483841.79,…

A: A journal entry is the technique through which a firm records every individual financial…

Q: Net Work Corporation, whose annual accounting period ends on December 31, issued the following…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

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, 2020, Cullumber Company issued $400,000, 10%, 10-year bonds at face value. Interest is…

A: Bonds- These are the debts of a company on which interest is payable after a fixed interval i.e.…

Q: Volunteer Inc. issued bonds with a $650,000 face value, 12% interest rate, and a 4-year term on July…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On January 1, 2019, Hackman Corporation issued $1,400,000 face value 12% bonds dated January 1,…

A: Step 1:Required journal entries related to bonds are presented hereunder:No. DateAccount Titles and…