On January 1, 2021, Malya Company issued 500, P1,000 face value 6%, 5-year term bonds and issued to yield a rate of 8%. On December 31, 2023, the entire bonds were retired through the issuance of 50,000 shares of its P5 par value ordinary shares currently selling at P9. The fair value of the liability is P425,000. Required: Prepare the journal entries upon the retirement of the bonds.

Q: On March 1, 2021, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of…

A: Bonds Payable: Bonds payable are recorded when a company issues bonds to generate cash. Cash…

Q: Polk Incorporated issued $251,000 of 10% bonds on July 1, 2019, for $260,122.33. The bonds were…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS    Par value of bonds = $251,000  Semi-annual interest…

Q: ABC Company issued $2,000,000 face value of bonds at 95 on January 1, 2021.The company incurred bond…

A: Journal entry: A journal entry is used to record day-to-day transactions of the business by…

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

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

Q: Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: Solution: When bonds are redeemed before maturity date, difference between carrying value and…

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

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: Oriole Company sold $3,250,000, 9%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: journal entry        Date  Account titles & explanations  Debit  Credit…

Q: On March 1, 2021, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of…

A: Requirement 1:

Q: Required: 1. to 3. Prepare the journal entries to record their issuance by The Gorman Group on June…

A: The financial instrument which provides fixed interest as a return over the period of investment is…

Q: Clark Company issued $80,000 of 10-year, 7% bonds payable on January 1, 2024. Clark Company pays…

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

Q: Bonita Corporation issued $564,000 of 7% bonds on May 1, 2025. The bonds were dated January 1, 2025,…

A: Bonds:The bond is the financial instrument that is used by the company to get the loan amount so…

Q: The Pronghorn Company issued $390,000 of 11% bonds on January 1, 2025. The bonds are due January 1,…

A: Bonds issue result in discounts when the selling price is lower than the face value. The premium or…

Q: The Pronghorn Company issued $300,000 of 10% bonds on January 1, 2025. The bonds are due January 1,…

A: Bonds are issued either by government entities or by corporations. The premium on bonds arises when…

Q: The Gonzalez Group issued $980,000 of 9% bonds on June 30, 2024, for $1,076,985. The bonds were…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2018, for $967,707. The bonds were dated…

A:

Q: The Gorman Group issued $860,000 of 9% bonds on June 30, 2021, for $945,110. The bonds were dated on…

A: We have the following information of the Gorman Group: 9% $860,000 bonds issued for $945,110…

Q: The Gorman Group issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated…

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

Q: On October 1, 2019, Ball Company issued 6% bonds dated October 1, 2019, with a face amount of…

A: The procedure of entering commercial transactions for the first time in the books of accounts is…

Q: The Gonzalez Group issued $890,000 of 9% bonds on June 30, 2024, for $978,079. • The bonds were…

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

Q: On Dec. 31, 2020, Zallag company issues callable bonds that havea $700,000 par value, mature in 10…

A: Bonds are the amount company borrowed from the investors for a fixed income and for a period of…

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: The Flounder Company issued $260,000 of 11% bonds on January 1, 2025. The bonds are due January 1,…

A: Bonds are issued either by government entities or by corporations. The premium on bonds arises when…

Q: The Kingbird Company issued $240,000 of 8% bonds on January 1, 2020. The bonds are due January 1,…

A: Bonds are the instrument by which company raises the money for a fixed interest payment as finance…

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: Blue Corporation issued $408,000 of 7% bonds on May 1, 2025. The bonds were dated January 1, 2025,…

A: Bond refers to a fixed-income instrument, used by organizations to raise money. Borrowers issue…

Q: On January 1, 2008, Davis Corporation issued $3,000,000 of 8% bonds at 103. Interest is paid…

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

Q: The Blossom Company issued $310,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…

A: Face value of bonds$310,000Issued at99Proceed received from issuance of bonds ($310,000 *…

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: Presented below are two independent situations: a) On December 31, 2021, Legault Corporation had…

A: Bond refers to a debt instrument issued by a company or government entity to raise capital. It…

Q: Prepare the journal entry to record the sale of these bonds on March 1, 2019.

A: Bonds:   Bonds are the financial debt instruments issued by the corporations to raise capital for…

Q: The Blossom Company issued $260,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…

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

Q: The Blossom Company issued $260,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…

A: Bonds Issue price = Face value of bonds x issue price = $260,000 x 98/100 = $254,800

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

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

Q: Novak Corp. redeemed $148,000 face value, 12% bonds on April 30, 2022, at 102. The carrying value of…

A: Redemption of bonds: It is the buyback of bonds issued by the company to the investors. Bonds…

Q: On February 1, 2022, Mojito, Inc. issued $2,000,000, 5% bonds for $2,165,000. Interest is payable…

A: The bonds are issued at a premium when the coupon rate offered by the bond is greater than the…

Q: The Gonzalez Group issued $830,000 of 9% bonds on June 30, 2024, for $912,141. • The bonds were…

A: The bond interest expense is equal to the sum of the cash interest and premium amortized if a bond…

Q: The Wildhorse Company issued $360,000 of 7% bonds on January 1, 2020. The bonds are due January 1,…

A: Pass necessary journal entries to record the issuance of bonds.

Q: Polk Incorporated issued $231,000 of 11% bonds on July 1, 2019, for $239,209.53. The bonds were…

A: Amortization Schedule:- It is a statement prepared for the premium and discount over the investment…

Q: The Bridgeport Company issued $230,000 of 13% bonds on January 1, 2020. The bonds are due January 1,…

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

Q: The Gorman Group issued $930,000 of 11% bonds on June 30, 2021, for $1,009,794. The bonds were dated…

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

Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967,707. The bonds were dated…

A: 1.

Q: niums and discounts on a straight line basis. Sneezy Ltd. has a January 31 year end. uired: 1.…

A: Accounting for Bond