On  January of the current year, Banek Inc issued $350,000 of 8% nine year bonds for $309,086, which implies a market (yield) rate of 10%. Semiannual interest is payable on June 30 and December 31 each year.   Show computation to confirm the bond issue price Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannually interest payment and discount amortization on June 30 of the current year, and (3) semiannual interest payment and discount amortization on December 31 of the current year.

Q: Wookie Company issues 9% , five-year bonds, on January 1 of this year, with a par value of $109,000…

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

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,400 million on…

A: The journal entries are prepared to keep the record of day to day transactions of the business. The…

Q: On January 1, 2022, Kristopher Co. issued ten-year bonds with a face value of $6,000,000 and a…

A: The bonds are the financial instruments of the business. The bonds are reported as long term…

Q: On January 1, 20XX, Cisco Corporation issued a $600,000, 9%, 5-year bond for $576,834. The bonds…

A: Bond's discount or premium is caused due to difference between market rate and couporate.

Q: On January 1, Remington Corp issued $500,000 of 15-year, 10% bonds payable, yielding an effective…

A:

Q: On January 1, 2018, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds…

A: Requirement 1:   Compute the amount of liability.

Q: On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays…

A: Solution: Discount on issue of bond = Face value - Issue price = $946,000 - $889,240 = $56,760…

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 current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

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

Q: Paulson Company issues 7%, four-year bonds, on January 1 of this year, with a par value of $109,000…

A: Journal entry is the primary step to record the transaction in the books of accounts. Interest…

Q: As a long-term investment, Camex Inc. paid $800,000 (par value) for Simple Bank bonds. The bonds pay…

A: A journal entry is the recording of financial transactions of business entity in the books of…

Q: On the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays…

A:

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: On January 1, Year 1, Wayne Company issued bonds with a face value of $635,000, a 5% stated rate of…

A: Income statement is prepared with a view to ascertain the earnings of an entity over a specific…

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

A:

Q: January 1 Year 1, Gordon Corporation issued bonds with a face value of $70,000, a stated rate of…

A: Bonds are long term sources of finance for the companies but when bonds are issued they may be…

Q: Massy Company issued $4,000,000 of 10-year, 11% bonds on January 4, 2021. The bonds pay interest…

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or…

Q: On August 1, 2022, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is…

A: When the bonds are issued then cash will receive so cash account would be debited and bond payable…

Q: The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: On January 1, Year 1, Kenneth Cole Inc. issued $2,000,000, 5%, 10-year bonds, with interest payable…

A: Bonds can be referred to as financial securities which are issued by large organizations to raise…

Q: On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

A: Solution: S.no  Particulars Debit Credit (a)  Cash A/C Dr.  $1,225,000     Discount on bonds…

Q: Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January…

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

Q: On January 1, Marigold Corp. issued $270,000, 7%, 10-year bonds at face value. Interest is payable…

A: Accrual of interest on December 31 = Face value of bonds x rate of interest x period = $270000*7%*1…

Q: On May 1, Holiday Company issued $200,000, 9%, 10-year bonds for $213,591 when the market rate was…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

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

A: Semiannual cash payments is computed by applying coupon rate on the par value of the bonds issued.It…

Q: On January 1, Crane Company issued $5400000, 9% bonds for $5095000. The market rate of interest for…

A: The securities issued by an entity to raise funds from the market is referred to as bonds. These are…

Q: On January 1, 2021, Bradley Recreational Products issued $100,000, 9%, four year bonds. Interest…

A: Concept Given Date of issue January 1 2021 Face value 100000 Coupon rate 9%…

Q: On January 1, Patterson Inc. issued $5,000,000, 9% bonds for $4,695,000. The market rate of interest…

A: Discount on bonds payable: This is the value that arises when the bonds are sold at a price less…

Q: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000…

A: Given information is: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a…

Q: On January 1, 2023, Kristopher Co. issued ten-year bonds with a face value of $7,000,000 and a…

A: A bond is a financial instrument or debt security that is used to symbolize a loan that an investor…

Q: On January 1, Year 1, Eureka Company issued $250,000 of 5-year, 6% bonds at face value. The annual…

A: Bonds payable: Bonds payable also called promissory note. It is a legal instrument in which one…

Q: On May 1, Saxophone Corp. issued $300,000, 9%, 10-year bonds for $281,307 when the market rate was…

A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…