On January 1, 20XX, Cisco Corporation issued a $600,000, 9%, 5-year bond for $576,834. The bonds were sold to yield an effective interest rate of 10%. Interest is paid semiannual on June 30 and December 31. The company uses the effective interest method of amortization. Instructions: prepare a bond amortization schedule, that shows the first three interest payment dates and prepare the journal entries for January 1, June 30 and December 31.

Q: On April 30, Year 1, Augusta Corporation issued $5,000,000 of 4% 10-year bonds paying interest…

A: Journal entry refers to the process of recording business transactions for first time in the books…

Q: On the first day of the fiscal year, a company issues a $2,000,000, 10%, 9-year bond that pays…

A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…

Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, five-year bond that pays…

A: Bonds   Bond is a long-term financial instrument issued by a company for which the company pays…

Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…

A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300

Q: On the first day of the fiscal year, a company issues a $1,400,000, 10%, 7-year bond that pays…

A: Bond Premium is amortized can be amortized through Straight line method and Effective interest rate…

Q: On the first day of the fiscal year, a company issues a $2,750,000, 8%, 5-year bond that pays…

A: Bonds are the form of loan or debt that is being issued by the company and on which regular interest…

Q: On the first day of the fiscal year, a company issues a $415,000, 7%, 10-year bond that pays…

A: Premium on Bond Payable = $435,800 - $415,000 = $20,800   Interest is paid semiannually for 10…

Q: On the first day of the fiscal year, a company issues a $3,600,000, 9%, 4-year bond that pays…

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

Q: On January 1, Year 1, Parker Company issued bonds with a face value of $70,000, a stated rate of…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

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 June​ 30, Power Company issues 5%​, five​-year bonds payable with at face value of $60,000. The…

A: Journal entry : It is prepared to record the financial and non financial transaction of the business…

Q: On the first day of the fiscal year, a company issues a $874,000, 9%, 10-year bond that pays…

A: A record is often kept in the general ledger, but it can also be kept in a single account,…

Q: Journalize the first interest payment and the amortization of the related bond discount. Round to…

A: A bond is said to be issued at a discount when the buyer pays an amount which is less than the par…

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: On January 1, Year 1, Jones Company issued bonds with a $110,000 face value, a stated rate of…

A: The bonds are the financial instruments for the business. The bonds are issued at discount when…

Q: On January 1, the first day of the fiscal year, a company issues a $2,400,000, 4%, five-year bond…

A: Annual Interest=2,400,000×4%=96,000

Q: On January 1, a company issues bonds dated January 1 with a par value of $200,000. The bonds mature…

A: Bond's are issued by companies to raise money from the market instead of taking loan from the banks.…

Q: On the first day of the fiscal year, a company issues a $8,900,000, 8%, 5-year bond that pays…

A: Premium on bonds payable:  It occurs when the bonds are issued at a high price than the face value.

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

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

Q: On January 1, Twilight Manufacturing issued $325,000 of 6%, 3-year bonds when the market rate  of…

A: In a table known as a bond amortization schedule, the sum of interest paid, interest accrued, and…

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: On the first day of the fiscal year, a company issues a $5,100,000, 9%, 4-year bond that pays…

A: Bonds issued at discount: A bond said to be issued at discount when its issue price is less than…

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

A: Premium on issue of bonds = Cash received - Par value of bonds = $2,379,360 - $2,250,000 = $129,360

Q: On the first day of the fiscal year, a company issues a $6,400,000, 6%, 9-year bond that pays…

A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…

Q: On the first day of the fiscal year, a company issues a $3,300,000, 12%, 6-year bond that pays…

A: The bonds payable are the financial instruments that are used to raise money from the market or…

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: Best Beans Coffee Company issued bonds with a $270,000 face value on January 1, Year 1. The bonds…

A: The bonds are financial instruments that are issued to raise money from the investors. The bonds are…

Q: On January 1, Year 1, the Diamond Association issued bonds with a face value of $210,000, a stated…

A: The amount of discount on the issue date is determined by deducting the selling value from the face…

Q: Diaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated…

A: Bond is a financial instrument used to raise funds by large organizations. The issue price of bond…

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

A: Since it is a semiannual bond interest will be paid in 10 installments  ( 5 years × 2 )  The bond is…

Q: ay of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest…

A: Solution: Semiannual interest amount = $800,000*6%*6/12 = $24,000 Discount amortization = ($800,000…

Q: A company issued 10%, 10-year bonds with a par value of $1,150,000 on January 1, at a selling price…

A: Bonds are presented at the carrying value in the balance sheet. Bond selling price and face value…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…

A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue of bond…

Q: On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays…

A: Discount on Bonds Payable = Face value of the bonds - Issue value of the bonds = $1,450,000 -…

Q: On the first day of the fiscal year, a company issues an $2,750,000, 8%, five-year bond that pays…

A: Interest is calculated as a percentage of the loan (or deposit) balance, which is paid to the lender…

Q: On the first day of the fiscal year, a company issues a $1,000,000, 8%, five-year bond that pays…

A: Journal entry can be defined as the process of recording relevant business transaction into the…

Q: 500 of its 6%, $1,000 bonds on January 1 of Year 1. The bonds pay cash interest semiannually each…

A: The effective interest method, which is dependent on the object's effective interest rate (EIR), is…