On January 1, 2025, Oriole Co. issued ten-year bonds with a face amount of $5000000 and a stated interest rate of 7% payable annually on January 1. The bonds were priced to yield 10%. Cash received from the sale of the bonds was Present value factors are as follows: At 7% At 10% Present value of 1 for 10 periods 0.508 0.386 Present value of an ordinary annuity of 1 for 10 periods 7.024 6.145 Cash received from the sale of the bonds was $4080750. $4850000. $4650000. $5000000.

Q: LRNA Company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. This price…

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

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, 2025, Blossom Co. issued ten-year bonds with a face value of $6,750,000 and a stated…

A: Par value of the bonds = $6,750,000Stated interest rate = 10%Years to maturity = 10 yearsYeild =…

Q: Bloom Corporation issued the following Face Value: $12,000,000 Stated Rate: 6.00% Effective Rate:…

A: Given information : Face value  $ 1,20,00,000.00 Stated rate 6% Effective rate 6.25% Term…

Q: Discount-Mart issues $16 million in bonds on January 1, 2021. The bonds have a ten-year term and pay…

A: Correct option is (c) 12%

Q: On January 1, 2022, Kristopher Co. issued ten-year bonds with a face value of $6,000,000 and a…

A: The bonds are the financial instruments of the business. The bonds are reported as long term…

Q: Snickett Corp. issued $5,000,000, 5-year bonds on the first day of its fiscal year. The bonds have a…

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

Q: Discount-Mart issues $20 million in bonds on January 1, 2021. The bonds have a seven-year term and…

A: Bond Bonds have an annual coupon rate attached to themselves, which the bondholder receives each…

Q: On January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds…

A: Given: Face value= $5,000,000 i (Stated interest rate) = 14% n (Time period)= 10 x 2 = 20 Market…

Q: Oriole Corp. issued $410,000 of 3-year, 4% bonds on May 1, 2024. The market interest rate when the…

A: Bonds are debt instruments where the issuer pays the investor a fixed interest periodically as well…

Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…

A: PREPARATION OF BOND DISCOUNT SCHEDULE

Q: PA6. 13.3 Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term…

A: Bonds are the highly secured debt securities which are redeemed after a certain span of time.

Q: On January 1, 2022, Sheridan Company issued $2,060,000 face value, 8%, 10-year bonds at $1,927,796.…

A: Bond interest = carrying value × effective rate Interest expense = 1,927,796 × 9% = 173501.64…

Q: Splish Brothers Corporation issued $580.000, 6%, 20-year bonds on January 1, 2020, for $518,555.…

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

Q: ed ten-year bonds with a face value of $5,000,000 and a stated interest rate of 6%, payable…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: Georgia Corporation issued $200,000 par value, 10%, 4-year bonds (i.e., there were 200 of $1,000 par…

A: Price of bond is the present value of coupon payments plus present value of par value of the bond…

Q: On January 1, 2024, Cullumber Co. issued eight-year bonds with a face value of $6040000 and a stated…

A: Bonds help companies, government entities, and others acquire the funds required to meet their…

Q: Prepare journal entries for the following transactions.

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: 12A. On December 31, 2025, when the market interest rate is 14%, Arnold Corporation issues $150,000…

A: The information given are as follows:Market Rate of interest per semi-annual period = 14%/2 = 7%No.…

Q: Vaughn Manufacturing issues $5130000, 6%, 5-year bonds dated January 1, 2020 on January 1, 2020. The…

A: The question is based on the concept of Financial Management.

Q: On January​ 1, 2023, Jones Corporation issued​ $2,982,000, 9%, 5 - year bonds with interest payable…

A: Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: Crane Company issues $25300000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

A: The bonds are the long-term liabilities that are issued to raise the money from the market orThe…

Q: On January 1, 2025, Cullumber Co. issued ten-year bonds with a face value of $5,625,000 and a stated…

A: Issue price of a bond means the price at which the bonds are issued by the entity on the market. If…

Q: de, Inc. issued $758,000 of bonds on December 15, 2022, when the market rate of interest was 6%. The…

A: Here are the journal entries to record the issuance of the bonds on December 15, 2022, and the…

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

A: A journal entry is being used to record a commercial transaction in the accounting records of a…

Q: On January 1, 2021, Sheridan Co. issued ten-year bonds with a face value of $4,500,000 and a stated…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Crane Company issues $5040000, 7%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds…

A: Proceeds from bond is the Present Value of the Bond. Present value of Bond is the present value of…

Q: On January 1, 2025, Crane Co. issued ten-year bonds with a face value of $5,500,000 and a stated…

A: Lets understand the basics.Bond can be issued at,(1) Par value(2) At premium(3) At discount If bond…

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: A company issues bonds with a face value of $12 million on June 1, Year One, for the face value plus…

A: The accrued interest is the amount of interest due for payment. The accrued interest is reported as…

Q: On January 1, 2022, Lark Road Corporation issued $600,000 par value, 3%, 5-year bonds. Interest is…

A: Bond amortization is systematically writing off Bond amortization Premium/Discount over the life of…

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…

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: Crane Company issues $26400000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

A: Time Value of Money :— According to this concept, value of money in present day is greater than the…

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, 2020, Sheffield Corp. issued $4500000, 10-year, 4% bonds at 102. Interest is payable…

A: The journal entries are prepared to record the transactions on a regular basis. The bonds are issued…

Q: On January 1, 2021, Cheyenne Co. issued ten-year bonds with a face value of $4,700,000 and a stated…

A: Calculate the issue price of the bonds.

Q: Carla Vista Enterprises issued 8%, 8-year, $2,950,000 par value bonds that pay interest annually on…

A: The bond refers to the instrument used by companies to raise debt capital from investors. The main…

Q: Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are…

A: Bond is a financial instrument which is used to raise the fund by large organizations. Government…

Q: On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: On January 1, 2025, Cullumber Co. issued five-year bonds with a face value of $510,000 and a stated…

A: Face value$510,000Coupon rate10%YTM6%Years to maturity5Compounding frequency2Present value of 1 for…

Q: On August 1, 2022, Bridgeport Corp. issued $483,600, 7%, 10-year bonds at face value. Interest is…

A: given that, Bridgeport Corp. issued bonds worth $483600 Rate of interest = 7% life of bond = 10…

Q: On January 1, 2025, Martinez Company issued $1,800,000 face value, 7%, 10-year bonds at $1,932,482.…

A: Bond is the amount that has been borrowed by the company on which a specified percentage of interest…

Q: 2.  On July1, 2018, Dixon Inc. issued bonds with a $500,000 face value at 96.0 and the 5-year bonds…

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: Kingbird corporation issued $460,000 8% 20 year bond on January  1,2022 for $418,008.this price…

A: Bond Discount =  $460,000- $418,008=$41992 Accrual Interest = $460,000*8% = $36800 Effective…

Q: Present value of 1 for 8 periods at 10% 0.46651 Present value of 1 for 8 periods at 12% 0.40388…

A: In the context of bond valuation, the present value of the principal represents the current worth of…

Q: A. July 1, 2020: entry to record issuing the bonds. B. June 30, 2021: entry to record payment of…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: On January 1, 2025, Sandhill Co. issued ten-year bonds with a face value of $5,125,000 and a stated…

A: Bonds are long-term liabilities that are issued to generate long-term funds for the business. The…