On January 1, 2020, Cullumber Company issued $400,000, 10%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Prepare the journal entry to record the issuance of the bonds.  Date Account Titles and Explanation Debit Credit Jan. 1               (b) Prepare the journal entry to record the accrual of interest on December 31, 2020.  Date Account Titles and Explanation Debit Credit Dec. 31               (c) Prepare the journal entry to record the payment of interest on January 1, 2021.  Date Account Titles and Explanation Debit Credit Jan. 1

Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…

A: Cash(600000*102/100) Dr $612000 Bond payable  Cr                      $600000 Premium on issue   Cr.…

Q: Bramble Corp. issued 3,400 8%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest…

A: Given:

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A: If the issued Price is less than the face value , it will be treated as that Bonds are issued at…

Q: Cullumber Company issued $505,000, 15-year, 4% bonds at 96.   Prepare the journal entry to record…

A: Given, Cullumber Company issued $505,000, 15-year, 4% bonds at 96. Prepare the journal entry to…

Q: Un 1/1/2020, Blue Company issued 5-year, 9% bonds with a par value of $1,000,000 The company…

A: Bond is an instrument which is issued at par, discount or at premium.  When company required the…

Q: Oriole Company issued $750,000, 7%, 10-year bonds on December 31, 2021, for $680,000. Interest is…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Martinez Company issued $650,000, 9%, 10-year bonds on January 1, 2020, at 103. Interest is payable…

A: Interest to be paid = Face value of bonds x stated rate of interest x period = $650,000 x 9% =…

Q: On January 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…

A: Solution: Premium on issue of bond is computed as bond issue price less face value of bonds…

Q: On December 31, 2018 Brown Company issued $600,000 of 15-year, 11% bonds payable for $558,706,…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…

A: Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash $311,500…

Q: Rombus corp issued P600,000, 9%, 20-year bonds on January 1, 2020, at P103. Interest is payable…

A: Each transactions needs to be recorded in the books of accounts. Journal entries are basic…

Q: Pharoah Company issues $2.90 million, 5-year, 7% bonds at 104, with interest payable annually…

A: Given that the bonds has been issued at premium and it has to be amortised on straight line basis.…

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…

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A: A bond refers to fixed income instrument that represents a loan made by an investor to a borrower…

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

Q: Blossom Company issues $3.2 million, 10-year, 9% bonds at 96, with interest payable on December 31.…

A: 1. Date Account Titles and Explanation Debit Credit Jan. 1 Cash ($3,200,000*96/100)…

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A: The effective interest method of bond is used to discount or write off. It consider purchase price…

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A: Disclaimer: "Since you have asked multiple questions, we will solve the first three questions for…

Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…

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

Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid…

A:

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

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Q: Bramble Corp. issued 1,200 9%, 8-year, $1,000 bonds dated January 1, 2022, at face value. Interest…

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Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…

A: 20- Year 6% Bond =. $380,000  Interest Rate =6%  Interest Payable on January 1.

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…

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

Q: som Company issues $390,000, 20-year, 8% bonds at 101. Prepare the journal entry to record the sale…

A: Bonds are debt instruments that carry the payment for interest annually and payment of face value on…

Q: Cucumber Electric sold $3,300,00, 8%, 10-year bonds on January 1, 2022. The bonds were dated January…

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Q: Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January I, 2022, at face value.…

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Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2019, with a $250,000 par value. The…

A: It is a fixed income instrument that represents a loan made by an investor to a borrower ( corporate…

Q: On January 1, 2020, Cullumber Corporation issued $840,000, 7%, 10-year bonds at face value. Interest…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…

A: Given, Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value.…

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

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

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: 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, 2020, Marigold Corp. issued $5100000, 10-year, 4% bonds at 102. Interest is payable…

A: When a bond is issued at premium, the amount received excess of fair value should be recorded under…

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A: Interest payable on January 1 = Face value of bonds x rate of interest x 6/12 = $500000 x 6% x 6/12…

Q: On January 1, 2019, Knorr Corporation issued $1,000,000 of 9%, 5-year bonds dated January 1, 2019.…

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

Q: Omar Company issued a $140,000, 11%, 10-year bond payable at 97 on January 1, 2024 Interest is paid…

A: If the issued Price is less than the face value, it will be treated as that Bonds are issued at…

Q: On August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is…

A: As per accrual principle of accounting, all the expenses need to be accounted for within the…

Q: Legacy issues $660,000 of 5.5%, four-year bonds dated January 1, 2019, that pay interest…

A: Solution (4) : Date Particulars Debit Credit 30 June , 2019 Interest expense 19,598.50…

Q: On January 1, Marigold Corp. issued $270,000, 7%, 10-year bonds at face value. Interest is payable…

A: Accrual of interest on December 31 = Face value of bonds x rate of interest x period = $270000*7%*1…

Q: andings Glassware Company issues $1,066,000 of 16%, 10- year bonds at 94 on February 28, 2025. The…

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