On January 1, Elias Corporation issued 10% bonds with a face value of $67,000. The bonds are sold for $64,990. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 10 years from now. Elias records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 of the first year is a.$6,700

Q: On January 1 of the current year, Barton Corporation issued 8% bonds with a face value of $91,000.…

A: When bonds are issued at a price less than the face value, then it means bonds are issued at a…

Q: The Marx Company issued $100,000 of 7% bonds on April 1 of the current year at face value. The bonds…

A: Interest expense = Face value*rate of interest*no. of month for the year/12 = $100000*7%*9/12 =…

Q: The Levi Company issued $100,000 of 12% bonds on January 1 of the current year at face value. The…

A: When bonds issued at par, there is no amortization of discount or premium required.

Q: Chase Corporation has $7,500,000 of 5 percent, 10-year bonds dated January 1, with interest payment…

A: A bond payable's sustaining value is another word for the book value of a bond payable. Bond payable…

Q: On January 1 of the current year, Barton Corporation issued 11%, 5-year bonds with a face value of…

A: The objective of this question is to calculate the bond interest expense for the current year ended…

Q: The Merchant Company issued 10-year bonds on January 1. The 9% bonds have a face value of $101,000…

A: Bonds are a form of debt or loan issued by the company, on which company has to make regular…

Q: On January 1, Elias Corporation issued 7% bonds with a face value of $94,000. The bonds are sold for…

A: Bonds will pay fixed amount of interest on face value of the bond on monthly/ quarterly/ half…

Q: On January 1 Elias corporation issued 10% bonds with a face value of $50,000. The bonds are sold for…

A: Formula: Interest amount = Bond carrying value x Interest rate x Time period. Multiplying bond…

Q: Marvin Company issues $125,000 of bonds at face value on January 1. The bonds carry a 6% annual…

A: ANSWER:- (1) Option D  (7,500)=NA+(7,500) NA-7,500=(7,500) (7,500)OA is correct Explanation:- Amount…

Q: On January 1 of the current year, Barton Corporation issued 9%, 5-year bonds with a face value of…

A: When Bonds are issued at discount such discount will be written off over the life of the period.…

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 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 January 1 of the current year, the Barton Corporation issued 8% bonds with a face value of…

A: Total Face value of bonds = $71,000 Less: Sales Value of Bonds = $68,870 Discount on bonds payable…

Q: On January 1, Year 1, Kennard Co. issued $2,000,000, 5%, 10-year bonds, with interest payable on…

A:

Q: On January 1, Elias Corporation issued 10% bonds with a face value of $71,000. The bonds are sold…

A: Bonds refer to the debt instrument which is issued in order to raise funds (capital) for the…

Q: The Levi Company issued $80,000 of 6% bonds on January 1 of the current year at face value. The…

A: Lets understand the basics. When bond is issued at face value then for calculating interest expense,…

Q: On January 1, a company issued and sold a $380,000, 6%, 10-year bond payable, and received proceeds…

A: Table of calculation

Q: The Levi Company issued $96,000 of 6% bonds on January 1 of the current year at face value. The…

A: Interest expense refers to the costs incurred in respect to the loans, bonds and other debts…

Q: On January 1, 20x1, Fleetwood Inc. issued bonds with a face amount of $25 million and a stated…

A: When amortizing bonds, the Effective Interest Method shows the real interest rate that was in effect…

Q: On January I, Bramble Corp. issued 10 year, S6,000,000,9% bonds for $6,842,830. The market rate of…

A: Introduction: A loan that amortizes is one with monthly payments that go toward the principle.…

Q: Elroy Inc. sold a 7%, 15-year bond on January 1. The bond sold 106 when the market rate of interest…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Assume the bonds are issued for $6,940,000 on January 1 to yield an effective interest rate of 6…

A: Interest Payments  Interest payments on government debt, such as long-term bonds, long-term loans,…

Q: On January 1 of the current year, Barton Corporation issued 7%, 5-year bonds with a face value of…

A: Annual Interest = $108,000 x 7% = $7,560 Bond discount = $108,000 - $102,600 = $5,400   This bond…

Q: Franklin Corporation issues $98,000, 10%, five-year bonds on January 1 for $102,400. Interest is…

A: Compute the unamortized premium as of July 1.   Unamortized premium as of July 1 = Issue price of…

Q: On January 1, Elias Corporation issued 9% bonds with a face value of $88,000. The bonds are sold for…

A: Capital raising sources are: Issue of shares Issue of debt securities Raise funds from financial…

Q: Merchant Company issued 10-year bonds on January 1. The 5% bonds have a face value of $741,000 and…

A: Introduction Effective interest rate method: When the advantages of accumulating through period are…

Q: The Levi Company issued $74,000 of 7% bonds on January 1 of the current year at face value. The…

A: Semiannual interest payment = face value of bonds x rate of interest x no. of months/12 = $74000 x…

Q: On January 1, Year 1, Young Company issued bonds with a face value of $119,000, a stated rate of…

A: Bond payableThe bonds are treated as long-term liabilities for the business. The bonds are issued at…

Q: The Levi Company issued $94,000 of 8% bonds on January 1 of the current year at face value. The…

A: Semiannually interest payment = Face value of bonds x rate of interest x 6/12 = $94000 x 8% x 6/12 =…

Q: January 1 of the current year, Barton Corporation issued 7% bonds with a face value of $79,000. The…

A: Amortization is used to reflect a more accurate picture of financial performance and position over…

Q: Merchant Company issued 10-year bonds on January 1. The 5% bonds have a face value of $796,000 and…

A: Introduction: An interest expense is a cost of borrowing for a certain period of time. It is more…

Q: On January 2, Year 1, the Lyndhurst Company Inc. a privately-held company, issued $1,000,000,…

A: bond amortization table for the Lyndhurst bondsDateInterest ExpenseInterest PaymentAmortization of…

Q: On September 30, Jose’s Jalapenos Inc., issued $1,000,000 of 10-year 9% bonds sated September 30,…

A: Journal entries are prepared to record the financial and non financial transactions of the business.

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

A:

Q: Corporation issued $100,000 of 5-year bonds with a stated interest rate of 8%. The bonds pay…

A: Bonds are long term and safe source of finance for the companies and bonds carry the periodic…

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: The Levi Company issued $70,000 of 11% bonds on January 1 of the current year at face value. The…

A: Formula: Interest amount = Principal amount x interest rate x Number of days. Interest is a charge…

Q: Douglas Company issued five-year bonds on January 1. The 12% bonds have a face value of $35,000,000…

A: Interest expense will be calculated on $37702483 at 5% (i.e 10%/2), since the interest is compounded…

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 June 30, Kelce Koolers issues 7%, 18-year bonds payable with a face value of $86,000. The bonds…

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

Q: The Designer Company issued 10-year bonds on January 1. The 7% bonds have a face value of $795,000…

A: Since it is given Designer uses effective interest method, the interest rate used for calculation of…

Q: glas Company issued 4-year bonds on January 1. The 14% bonds have a face value of $35,300,000 and…

A: Interest expense will be calculated for 6 months at the market rate of 8% on $37,952,483.