On January 1, 2020, $3,000,000, 10-year, 10% bonds, were issued for $2,910,000. Interest is paid annually on January 1. If the issuing corporation uses the straight-line method to amortize discount on bonds payable, the monthly amortization amount is Group of answer choices $29,100 $9,000 $2,424 $750

Q: A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid…

A: Discount on bonds payable:The excess of par value over the carrying value of the bonds will be…

Q: Help Seve & E On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1.000.000…

A: Par Value of the bonds = $1,000,000 Semi-annual Interest payment = 1,000,000 x 8% ÷ 2…

Q: On January 1, 2021, Ruzak Co. sold five-year, 6% bonds with a face value of $700,000.  Interest is…

A:

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

A:

Q: corporation uses the straig O $34350 O $2549. O $875. O $10500.

A: Straight-line amortization of discount is a method for amortizing discount on bonds . Under the…

Q: $25050000, 7.8%, 20-year bonds to yield 8% on January 1, 2024. Interest is paid on June 30 and…

A: The cost of borrowing money or utilizing credit, represented as interest costs, is the compensation…

Q: On January 2, 2020, a calendar-year corporation sold 4% bonds with a face value of $2640000. These…

A: A bond is the debt instrument issued by a company to raise the fund for its operations. The company…

Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…

A: Formula: Semiannual interest payment = Face value of bonds x rate of interest x no. of months / 12…

Q: The entity purchased 6,000,000 12% bonds on January 1,2021. The interest is payable annually. The…

A: The carrying value of a bond is computed by adding an unamortized premium or subtracting the…

Q: On January 1, 2021, PRANCER Company was authorized to issue 12% bonds with a face amount of…

A: Bond Issue A bond is an instrument that was issued by the federal authority which was used by the…

Q: On January 1, 2020, Dennis Company issued its 9% P9,000,000 face value bonds, which matures on…

A: One of the sources used by the business entity to manage the fund's requirement is to raise the…

Q: On April 1, 2020, Boston Company issued at 99 plus accrued interest 2,000 of 8% P1,000 face value…

A: A bond is said to be issued at discount when its price is less than its face value. On the other…

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 March 1, 2020, Jackson issues 5-year bonds, dated January 1, 2020, with a par value of…

A: The bonds are issued at par with accrued interest for 2 months.

Q: Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for…

A: Bonds is a financial debt instrument that pays fixed periodic interest and face value amount at the…

Q: The entity purchased 6,000,000 12% bonds on January 1,2021. The interest is payable annually. The…

A: The bond is purchased in order to earn a regular fixed interest with low risk. Bonds are issued by…

Q: On January 1, $925,000, 5-year, 10% bonds, were issued for $897,250. Interest is paid semiannually…

A:

Q: Frozen Company issues $34,800 of ten year bonds on January 1, 2020 at 108. It uses the straight line…

A: Financial statements are formal reports that summarize the financial performance, financial…

Q: On January 1, 2021, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable…

A: solution: Date Cash Paid Interest Expense Change in Carrying value Carrying value 1-Jan-21…

Q: Frozen Company issues $33,600 of ten year bonds on January 1, 2020 at 108. It uses the straight line…

A: INTRODUCTION: When bonds are issued, cash is received, and bonds payable are credited. But, if a…

Q: Bonds Issued at a Premium (Effective Interest) Cookie Dough Corporation issued $1,500,000 in 7%,…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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: On January 1, 2022, Pipestone Corporation issued a five-year, $40,000, 7% bond. The interest is…

A: Lets understand the basics.Bond can be issued at either par value or at discount or at premium.…

Q: On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the…

A: Interest expense on December 31, 2021 = present value of the bonds x yield rate x no. of the months…

Q: Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $369,707…

A: A bond is issued by the companies to raise funds for their business. The bondholder receives…

Q: On January 1, 2021, Braburt Co. sold six-year, 5% bonds with a face value of $700,000. Interest is…

A: Introduction:- A bond is a document of the bond issuer's obligation to the bondholders. Municipal…

Q: On January 2, 2020, Whispering Corporation issued $1,700,000 of 10% bonds at 97 due December 31,…

A: Loss on RedemptionThe profit or loss on a bond redemption is frequently quite easy to determine. The…

Q: On January 1, 2019, $40 million face amount of 5%, 20-year bonds were issued. The bonds pay interest…

A: Introduction: Interest: Interest is calculated on Principal Amount. Interest is calculated…

Q: E-Tech Initiatives Limited plans to issue $550,000, 10-year, 3 percent bonds. Interest is payable…

A: The bonds have a face value of $500,000 and are issued at 95% of the face value.Issue Price = Face…

Q: E-Tech Initiatives Limited plans to issue $400,000, 10-year, 4 percent bonds. Interest is payable…

A: Carrying value is an accounting measure of value in which the value of an asset or company is based…

Q: On January 1, 2022, Davison Corp. issues $500,000 of 9% 15-year bonds that pay interest year. Bonds…

A: Issue price of bonds would be present value of interest annuity & maturity amount at market rate…

Q: Awla Limited issued $1 million of 10-year, 5% bonds on January 1, 2021, when the market interest…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: On June 1, 2019, Vape Inc. issued P12,000,000 of 10% bonds to yield 12% effective rate. Interest is…

A: The carrying value of a bond is the the net amount between the bond's face value plus any…

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: On January 1, 2025, Entity D issued $1,000,000 of 7%, 5-year bonds at 98. The bonds pay interest…

A: Bonds Payable - Bonds Payable is a amount borrowed to be repayable at specific interval. It carries…

Q: On October 31, 2020, the Village of Lexington issued $1,000,000 of 3% general obligation serial…

A: When a bond pays interest semiannually, it means that the interest is paid in two equal installments…

Q: b) What is the bonds’ face value? c) What will the bonds’ carrying amount be at the maturity date?…

A: Bond Amortization table is a year-wise summary of bond's carrying amount, interest expenses and…

Q: Duke Corporation issued $2,600,000, 5-year, 7% bonds for $2,496,000 on January 1, 2022. Interest is…

A: Discount on issue of bond= Par value of bond - Issue priceSemiannual discount amortization = Total…

Q: A company issues $16700000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: On January 1, 2022 Company K issued $1,000,000, 5% bonds for $855,000. The market rate of interest…

A: One of the source used by the business organizations to meet their financial requirements is issue…

Q: A company issues $25900000, 5.8%, 20-year bonds to yield 6% on January 1, 2020. Interest is paid on…

A: Bonds are the obligations on an entity that is to be repaid at the date of its maturity. These are…

Q: Prepare journal entries for the following transactions.

A: Bonds are issued by large organization to raise the fund. Bonds are considered as debt securities…

Q: On January 1, 2019, Company X issued $550,000 of twenty-year bonds when a market rate was 2%. The…

A: The carrying value of a bond refers to the face value plus any unamortized premium or minus any…

Q: On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1,000,000 and an annual…

A: Bonds issued at discount: Bonds are said to be issued at discount if the issue price is less than…

Q: On January​ 1, 2023, Anthony Corporation issued $500,000 of 6%, 5 - year bonds at 99, with interest…

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

Q: On June 30, 2024, LN Bean issued $25 million of its 8% bonds for $23 million. The bonds were priced…

A: Interest expense is the amount of charge which is paid by the person who uses the funds. In this…

Q: Waterway Industries issues 2300, 10-year, 8%, $1000 bonds dated January 1, 2020, at 98. The journal…

A: Bonds are securities issued by the entity for the purpose of raising funds. It is an obligation for…