On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,773,129. The bonds mature on December 31, 20x3 and pay annual interest of 14%. The effective interest rate is 8%, On December 31, 20x2, after paying the annual interest, the entity retires the bonds at a call premium of P400,000. Requirement: Provide the entry on December 31, 20x2 to record the retirement of the bonds.

Q: Kevin, Inc. issues P 3,000,000, 9%, bonds for P 2,817,000. The market interest rate for these bonds…

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

Q: Trog Industries pays and records the semiannual interest on its $520,000, 10-year, 6% bonds…

A: Here in this question, we are required to make journal entry for interest payment and discount…

Q: On January 1, Carla Vista Inc. issued $7000000, 9% bonds for $7455000. The market rate of interest…

A: Bonds issued at premium.If the issue price of bond is greater than face value of bond, then bond is…

Q: Problem 1: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129.…

A: Here asked for multi question we will solve for first question as per guidelines.  If you need…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $56,500 face value, a stated rate of…

A: Bonds Payable: Bonds Payable is an long term debt issued by the government and company's to raised…

Q: On June 30, Jameson Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: A BOND IS A DEBT SECURITY UNDER WHICH THE BOND ISSUER OWES THE BOND HOLDER A DEBT INCLUDING INTEREST…

Q: On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays…

A: Bond is a financial instrument which is issued to raise the fund for the organization. Bond can be…

Q: On July 1, 2023, AAA Company issued P1,198,000 of 10%, 20 year bonds with a face amount of…

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

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

A:

Q: Al-Teeb Company issued OR 40,000, 3.5%, 15-year bond payable at 104 on January 1, 2018 Required:…

A: Issue value of Bonds = Face value of bonds x issue price = 40,000 x 104/100 = 41,600

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: at 95. T

A: The journal entries and bonds payable as,

Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…

A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

Q: In a highway concession that requires capital investment, the recommended method is: a) break-even…

A: In a highway concession that requires capital investment,  with a view to earn profit. As there is…

Q: On January 1, $904,000, 5-year, 10% bonds, were issued for $876,880. Interest is paid semiannually…

A: SOLUTION- Semiannual Amortization Amount= 904000 * 10% * 6/12= 45200

Q: On January 1, the first day of the fiscal year, a company issues an $1,350,000, 11%, five-year bond…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: Franklin corporation issues $81,000, 8%, 5-year bonds on January 1, for $84,650. Interest is paid…

A: BOND IS A SECURITY UNDER WHICH THE DEBT PRINCIPAL AMOUNT IS REPAID ALONG WITH INTEREST OVER A…

Q: On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays…

A:

Q: a. On January 1, Cardano Berhad issued RM1,200,000, 6%, 5-year bonds at face value. Interest is…

A: Since you have posted two different question, we will do the first one for you. To get the other…

Q: A company paid $600,000 for 1-year, 10% bonds with a par value of $600,000 on July 1. The bonds pay…

A: A record is typically kept in the ledger accounts, but it can also be kept in a specific account,…

Q: On the first day of the fiscal year, a company issues a (n) $935,000, 7%, 5-year bond that pays…

A: The objective of the question is to journalize the entry for the first interest payment and the…

Q: On April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including…

A: A per PFRS 9 Financial instruments an issue of bond is a financial liability which can be accounted…

Q: Franklin Corporation issues $86,000, 10%, 5-year bonds on January 1 for $89,900. Interest is paid…

A: Bonds Payable is a written document issued by the borrower. This document acts as a promissory note…

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 March 1, Year 1, 5M Corp. issued $50,000, 6%, 10-year bonds payable at 98 plus accrued interest.…

A: Interest for February , Year 1 = Face value of bonds x rate of interest x no. of months / 12 months…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $57,750 face value, a stated rate of…

A: Interest expense is the amount which is incurred on the amount used by the entity. Interest expense…

Q: Lasa Corporation issued 5,000, 9%, 5-year, RM1,000 bonds dated January 1, 2020, at 100 (a) Prepare…

A: Journal entries are accounting transactions used to record various accounting transactions in the…

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: On January 1, Year 1, Hackman Corporation issued $600,000 face value 6% bonds dated January 1, Year…

A: The objective of the question is to record the issuance of the bonds and the first two interest…

Q: > O On January 1, $853,000, 5-year, 10% bonds were issued for $827,410. Interest is paid…

A: Par value of bond = $853000 Issue price of bonds= $827410 Discount on bonds payable= $853000-$827410…

Q: Franklin Corporation issues $95,000, 10%, 5-year bonds on January 1 for $99,300. Interest is paid…

A: The actual interest payable = $ 95,000 * 10% * 6/12 = $ 4,750. The amortization of bond premium for…

Q: Franklin corporation issues $84,000, 8%, 5-year bonds on January 1, for $87,780. Interest is paid…

A: Proceed from issuance of bonds $87,780Less: Face value of bonds $84,000Premium on bonds payable…

Q: Franklin Corporation issues $83,000, 10%, 5-year bonds on January 1 for $86,700. Interest is paid…

A: Amortization expense is     ($86700 - $83000) / 10     = $370

Q: On January 1, $853,000, 5-year, 10% bonds were issued for $827,410. Interest is paid semiannually on…

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

Q: On January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond…

A: Total premium on bonds issue = Issue value - Face value of bonds = $2,379,360 - $2,250,000 =…

Q: On January 1, the first day of the fiscal year, a company issues an $1,800,000, 4%, five-year bond…

A: Journal: Recording of a business transactions in a chronological order.

Q: Hadley Ltd. is authorized issue $1,000,000 of 2%, 10-year bonds payable. On December 31, 2021, when…

A: A firm or group may issue bonds payable as a form of long-term debt to raise capital from investors.…

Q: Problem 1: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129.…

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

Q: On January 1, $877,000, five-year, 10% bonds, were issued for $850,690. Interest is paid…

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

Q: b. First interest payment on October 1, Year 1, and the amortization of bond premium for 2 months,…

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