On July 1, Year 1, Khatri Industries Inc. issued $18,000,000 of 10-year, 5% bonds at a market (effective) interest rate of 6%, receiving cash of $16,661,102. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Compute the price of $16,661,102 received for the bonds by using the tables shown in Present Value Tables. Round to the nearest dollar.   *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

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: Issuer Co. issued bonds with a face value of $200,000 and a stated rate of 3% on January 1, Year 1.…

A: The bonds are the financial instruments for the business that are used to raise money from the…

Q: 2. First semiannual interest payment, including amortization of premium. Round to the nearest…

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

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

A:

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: Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $21,000,000…

A: Journal entries (JE) refers to the events which are recorded in the financial statements or in the…

Q: On January 1, Applied Technologies Corporation (ATC) issued $600,000 in bonds that mature in 10…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: On September 1, Year 1, Parsons Company purchased $84, 000 of 10-year, 7% government bonds at 100…

A: The objective of the question is to journalize the purchase, receipt of interest, and sale of…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Solution 1-                                                                           Journal…

Q: Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell Inc. issued…

A: 1. Prepare the journal entry for cash to proceed from the issuance of the bonds on July 1, 20Y1.

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: terest expense shown on Jones' income statement for the year ending December 31, Year 1?

A: When bonds are issued at a discount , the total interest expense is the cash interest expense plus…

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: On January 1, Year 1, Victor Company issued bonds with a $250,000 face value, a stated rate of…

A: Option a: $15,000 is incorrect because it is the amount of cash paid by the company to its…

Q: Pronghorn Company estimates that 312,000 direct labor hours will be worked during the coming year,…

A: Solution:-The task involves creating a monthly manufacturing overhead flexible budget for every…

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $910 for $94,800. The bonds…

A: Bonds payable (at par) = 100 bonds * $910= $ 91000 Bond issued value= $ 94800 Premium on bond issue=…

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: Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued…

A: Introduction: Premium on bonds: When receiving cash for the bonds issued is greater than face value…

Q: Hoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on…

A: Interest expense = Face value of bonds x rate of interest x no. of month/12 = $32,700,000 x 6% x…

Q: Young Company issued bonds with a face value of $127,000, a stated rate of interest of 11 percent,…

A: Bonds are the financial debt instruments. When the contract rate of interest is more than the market…

Q: On the first day of the fiscal year, a company issues a $2,050,000, 9%, five-year bond that pays…

A: Bond: It is  long-term financial instrument issued by a company. Interest is paid to bond holders…

Q: On the first day of its fiscal year, Chin Company issued $20,300,000 of five-year, 11% bonds to…

A: Bonds is one of the important  liability of the business, on which regular interest payments needs…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Year1       July        1   Cash                                       $69,552,279…

Q: On the first day of its fiscal year, Chin Company issued $14,600,000 of five-year, 10% bonds to…

A: A bond issue at a discount means that investors buy bonds for less than their face value, resulting…

Q: On the first day of its fiscal year, Chin Company issued $21,300,000 of five-year, 4% bonds to…

A: Interest expense= Issue value of the Bonds x market interest rate x no. of months / 12 Interest…

Q: the current fiscal year (for the issuer’s books):   (a) Issuance of the bonds. (b) First annual…

A: No. Particulars  Debit Credit a         Cash 2125000     Premium on bonds payable   125000…

Q: On the first day of its fiscal year, Chin Company issued $13,200,000 of five-year, 6% bonds to…

A: Bond financing is an instrument for borrowing the funds. The borrower has to pay a fixed amount of…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Solution 1-                                                                          Journal entries…

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 Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 each for $104,000. The…

A: Journal entries are passed following the golden rules of accounting  Debit all assets and expenses…