On January 1 (the authorization date) of the current year, Temple Company issues $500,000 of 9% bonds at 103. These bonds pay interest on June 30 and December 31. Prepare a journal entry
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Q: On the first day of the fiscal year, a company issues a $968,000, 8%, 10-year bond that pays…
A: Working Note: Total premium on Bonds = Issue value - Face value of the bonds = $1,016,400 - 968,000…
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A: working note: 1.The straight-line amortization of an Discount on bond payable will be $1600 ($16000…
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A: Premium on Bond Payable = $435,800 - $415,000 = $20,800 Interest is paid semiannually for 10…
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Q: Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on…
A: Journal entries refers to the official book of a company which is used to record the day to day…
Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…
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A: BOND IS AN INSTRUMENT OF INDEBTEDNESS OF THE BOND ISSUER TO THE HOLDER .
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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 the first day of the fiscal year, a company issues a $2,000,000, 3.5%, 5-year bond that pays…
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A: When the bonds will issue we receive cash , and we have to pay interest through out its duration…
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A: Bond: It is long-term financial instrument issued by a company. Interest is paid to bond holders…
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Q: Select all that apply A company issues $100,000 of 6%, 10-year bonds dated January 1, that pay…
A: Lets understand the basics.Journal entry is required to make to record event and transaction that…
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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: Total premium on bonds = Total amount received - Face value of bonds = $520000 - $500000 = $20,000
Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 6% bonds, with interest payable…
A: Given: Value of the bond = $ 2,000,000 Bond rate = 6 % Price of the bond = $ 2,125,000
Q: On the first day of the fiscal year, a company issues an $2,250,000, 9%, five-year bond that pays…
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Q: On January 1, the first day of the fiscal year, a company issues a $250,000, 10%, 10-year bond that…
A: SOLUTION- BOND- A Bond is a fixed income instrument that represent a loan made by the investor to…
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: he first day of the fiscal year, a company issues a $3,500,000, 5%, 10-year bond that pays…
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Q: On January 1, the first day of the fiscal year, a company issues a $1,500,000, 11% , five-year bond…
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On January 1 (the authorization date) of the current year, Temple Company issues $500,000 of 9% bonds at 103. These bonds pay interest on June 30 and December 31. Prepare a
Bonds payable is a form of liability being incurred in business for amount borrowed. It can be long term bonds or short term bonds, it depends on term of bonds.
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- On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays semiannual interest of $36,250 ($1,450,000 × 5% × ½), receiving cash of $1,408,720. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312…On January 1, the first day of the fiscal year, a company issues a $550,000, 8%, 10-year bond that pays semiannual interest of $22,000 ($550,000 × 8% × ½ year), receiving cash of $550,000. (a) Journalize the entry to record the issuance of the bonds. fill in the blank 8dfaac02b05b066_2 fill in the blank 8dfaac02b05b066_4 (b) Journalize the entry to record the first interest payment on June 30. fill in the blank efa8e4f6603d061_2 fill in the blank efa8e4f6603d061_4 (c) Journalize the entry to record the payment of the principal on the maturity date. fill in the blank 71e811068fc505d_2 fill in the blank 71e811068fc505d_4On the first day of the fiscal year, a company issues a $8,800,000, 11%, 7-year bond that pays semiannual interest of $484,000 ($8,800,000 × 11% × ½), receiving cash of $9,235,540. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
- On the first day of the fiscal year, a company issues a $1,000,000, 10%, 5-year bond that pays semiannual interest of $50,000 ($1,000,000 x 10% x 1/2), receiving cash of $884,174. Journalize the entry for the issuance of the bonds. If an amount box does not require an entry, leave it blank.On January 1, the first day of its fiscal year, Jacinto Company issued $6,500,000 of six-year, 7% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Jacinto Company receiving cash of $6,194,985. Required: a. Journalize the entries to record the following (refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.): 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) 3. Second semiannual interest payment. The bond discount amortization, using…On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest of $20,000 ($500,000 x 8% x 1/2), receiving cash of $530,000. Journalize the entry for the issuance of the bonds. If an amount box does not require an entry, leave it blank. Cash
- On the first day of the fiscal year, a company issues a $883,000, 10%, 10-year bond that pays semiannual interest of $44,150 ($883,000 x 10% x 1/2), receiving cash of $927,200. Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank. - Select - - Select - - Select - - Select - - Select - - Select -On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $5,000,000, 6%, 10-year bond that pays semiannual interest of $150,000 ($5,000,000 × 6% × ½ year), receiving cash of $5,000,000. a. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. c. Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell Inc. issued $84,100,000 of 10-year, 12% bonds at a market (effective) interest rate of 10%, receiving cash of $94,580,761. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, Year 2, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for Year 1. 4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is…
- On the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays semiannual interest of $33,000 ($1,100,000 × 6% × ½), receiving cash of $1,178,944. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Interest Expense Premium on Bonds Payable CashOn January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond that pays semiannual interest of $135,000 ($2,250,000 x 12% x ½), receiving cash of $2,379,360. Required: Journalize the first interest payment and the amortization of the related bond premium. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.On January 1, the first day of the fiscal year, a company issues an $1,800,000, 4% , five-year bond that pays semiannual interest of $36,000 ($1,800,000 x 4% x %), receiving cash of $1,992,170. Required: Journalize the first interest payment and the amortization of the related bond premium. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
