On January 1, Swifty Corporation issued $5100000, 11% bonds for $5431500. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Swifty uses the effective-interest method of amortizing bond premium. At the end of the first year, Swifty should report unamortized bond premium of:     $280500   $291650   $313650   $314910

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: Tano Company issues bonds with a par value of $91,000 on January 1, 2019. The bonds’ annual contract…

A: Bond Issued at Par:- When the company issued bonds at the face value of the security is known as the…

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

Q: On January 1, 2023, Crane Ltd. issued $2130000, 5% bonds, which mature on January 1, 2030. The bonds…

A: Crane Ltd. issued bonds for a premium because the market interest rate (4%) is lower than the coupon…

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: Loop Raceway issued 700 bonds, each with a face value of $1,000, a stated interest rate of 6 percent…

A: Bonds that have an amortized face value are ones that pay interest in addition to regular payments…

Q: ista inc issued 00, 9% bonds for $7455000. The market rate of interest for these bonds is 8%…

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

Q: Marin Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: Tano Company issues bonds with a par value of $94,000 on January 1, 2021. The bonds' annual contract…

A: A bond is a debt security that is always issued by a company, municipality, or government. It is a…

Q: On January 1, 2021, a company issues 3-year bonds with a face value of $50,000 and a stated interest…

A: Interest expense = Issue price of bond × Market interest rate Cash paid = face value×stated interest…

Q: Compute the issue price of the bonds of Pluto corp issues P560,000 of 9% bonds, due in 9 years, with…

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

Q: On January 1, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On January 1, 2018, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $150,000.…

A: 1. Calculate the price Ithaca would have paid for the Cortland bonds on January 1, 2018 prepare a…

Q: On January 2, current year, Kalahari Limited issued $1,000,000, 10-year bonds for $1,150,000. The…

A: Maturity payment refers to the final payment that's made to bondholders when a bond reaches its…

Q: On January 1, Blossom Inc. issued $7300000, 9% bonds for $7774500. The market rate of interest for…

A: Cash payment of interest ($7,300,000 * 9%)$657,000Less: Interest Expense ($7,774,500 *…

Q: On January 1, 2024, Martin Company issued $5,000,000, 10% bonds.  Interest is payable semi-annually…

A: A financial table that shows the periodic payments and the distribution of principal and interest…

Q: The interest expense on the income statement for the year ended December 31, 2021 is:

A: Bonds are a kind of financial instrument issued for raising cash by the entities for a perspective…

Q: On January 1, 2020, Skysong Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were…

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

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: 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: 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: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…

A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

Q: Discount-Mart Issues $16 million in bonds on January 1, 2024. The bonds have a seven-year term and…

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

Q: On January 1, 2025, Blue Company issued S1, 100, 000 face value, 7 %, 10-year bonds at $1, 180,961.…

A: Bonds payable are long-term liabilities that are issued for a fixed term with a fixed periodic…

Q: On January 1, Cullumber Inc. issued $4200000, 9% bonds for $3943800. The market rate of interest for…

A: Lets understand the basics. When bond is issued for more than or less than its face value then…

Q: Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $59,000 for $59,000 on January 1,…

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

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: Claremont Inc. issued a $400,000 bond on January 1, 2020. The bond had a five-year life and an 8%…

A: A bond is an instrument of an indebtedness to the holders of bond issuer in finance. The most…

Q: (A) Bridgeport Co. sells $534,000 of 8% bonds on March 1, 2020. The bonds pay interest on September…

A: Bonds represent debts which are issued by the firm to meet the capital requirements. They act as a…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2020, with a $500,000 par value. The…

A: Since the interest is paid semi-annually, therefore the total payments, in this case, the number of…

Q: On January 1, 2019, Calvert Company issues 10%, $200,000 face value bonds for $207,259.79, a price…

A: journal entry is the act of keeping or making records of any transactions that is listed on the…

Q: On July 1, 2022, Free Compnay issued for $438,000, 500 of its 8%, $1000 bonds. The market rate when…

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

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, Marigold Corp. issued $5200000, 11% bonds for $5538000. The market rate of interest…

A: Premium unamortized means the premium amount which is yet to be amortized on the bonds. It is…

Q: Quatro issues bonds dated January 1, 2021, with a par value of $900,000. The bonds' annual contract…

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

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

A: Bonds: Bond is a debt security.The amount of interest is paid on bond.  Bond amortization:…

Q: On July 1 2021, espresso industries issued $700000 of 12 % bonds, dated July 1. Interest is payable…

A: Face value = $700,000Coupon rate =12%Maturity = 3 yearsYield to maturity = 14%Proceeds =…