On March 1, Sullivan Inc. issued $700,000 of 10-year, 11% bonds at an effective interest rate of 10%, receiving $743,625. Interest is payable semi-annually on March 1 and September 1. The journal entry would include a:   Group of answer choices credit to Premium on Bonds Payable for $43,625 credit to Cash for $743,625 debit to Bonds Payable for $700,000 none of these   Using information from the previous question, the entry to record the first interest payment and amortized premium for six months using the straight-line method would include a:   Group of answer choices debit to Premium on Bonds Payable for $2,181 debit to Cash for $38,500 none of these debit to Interest Payable for $36,319

Q: Crane Inc. issues $250,000, 10-year, 8% bonds at 96. Prepare the journal entry to record the sale of…

A: Lets understand the basics.There are two method through which amortization of bonds are made.(1)…

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

A: Journal entries are the initial reporting of the transactions in the books of an entity.

Q: Blossom Inc. issues $210,000, 10-year, 8% bonds at 96. Prepare the journal entry to record the sale…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: On the first day of the current fiscal year, $200,000 of 5-year, 10% bonds, with interest payable…

A: Discount on Bonds payable = Face value of bonds - issue price of bonds = $200,000 - $192,462 =…

Q: On October 1, 2021, Monty Corp. issued $828,000, 7%, 10-year bonds at face value. The bonds were…

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

Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…

A: Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash $311,500…

Q: Green Co. issued $400,000 of 12%, 10 year bonds on January 1 at 98. Interest is payable semiannually…

A: The bonds-are issued at discount of Rs. 2 per bond. Therefore, total cash received on issue date =…

Q: Schlitterbahn Waterslide Company issued 35,000, 10-year, 8 percent, $100 bonds on January 1 at face…

A: The journal entries can be made as follows :

Q: On January 1, a company issued and sold a $393,000, 6%, 10-year bond payable, and received proceeds…

A: Introduction: When company issues bonds at discount, then the discount amount can be amortized over…

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: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,500,000,…

A: Bonds: To raise the funds and finance the operations of the company, money is borrowed from the…

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: Present entries to record the selected transactions described below: Required: a. Issued $2,750,000…

A: The journal entries are as follows. (a) Cash A/C dr.                $2667,500 Discount A/C dr.…

Q: Blossom Company issues $3.2 million, 10-year, 9% bonds at 96, with interest payable on December 31.…

A: 1. Date Account Titles and Explanation Debit Credit Jan. 1 Cash ($3,200,000*96/100)…

Q: Grayco issued $2,000,000 of 10 year, 6% bonds on March 1 of the current year at face value, with…

A: SOlution: Date Particulars Debit Credit 01-Mar Cash 2000000           To bonds payable…

Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid…

A:

Q: Darien Inc. redeemed $20,000 of its bonds at 102 on January 1. At this date, the unamortized…

A: Cash on bonds is   20000 × 1.02 = 20400 the unamortized discount was $2,760. Loss on redemption is $…

Q: Journalize the entry to record the issuance of the bonds.

A: Journal entry:   It is a systematic record of a financial transaction of an organization recorded in…

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

A:

Q: Bramble Corp. issued 1,200 9%, 8-year, $1,000 bonds dated January 1, 2022, at face value. Interest…

A: There are three golden rules in accounting for recording the transaction : Debit what comes in ,…

Q: Moore Corp. issued 5.5​% two​-year bonds payable with a face amount of $60,000 when the market…

A: Bonds Payable - Bonds are the obligation that required to be paid at fixed duration of time. It…

Q: n 1/1/20, $300,000 of 10 year, 8% bonds were issued for $262,616. The issue price was based on an…

A: Straight line amortization method: Under the straight line method of amortization the bond discount…

Q: On January 1, 2022, Sunland Company issued $420,000, 12%, 10-year bonds at face value. Interest is…

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

Q: On January 1, the first day of the fiscal year, Designer Fabric Co. issues a $400,000, 5%, 10-year…

A: Bond is financial instruments used to raise funds to meet financial obligations of business.Bond can…

Q: Cucumber Electric sold $3,300,00, 8%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: Under straight line method, the premium or discount is amortized with equal amounts. The bonds are…

Q: Requirement. Journalize the transactions of Lamire Communications Inc. (Record debits first, then…

A: An entity's interest expenditure is the cost of borrowing money. On the income statement, interest…

Q: Diaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated…

A: Bond is a financial instrument used to raise funds by large organizations. The issue price of bond…

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…

Q: On July 1, a company issues a $1,000,000, 7%, five-year bond that pays semiannual interest of…

A: The discount on issue of bond is amortized over the life of the bond When the same amount of bond…

Q: On January 1, Year 1, Bell Corporation issued $203,000 of 10-year, 6 percent bonds at their face…

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

Q: On December 31 Wintergreen, Incorporated, issued $150,000 of 7 percent, 10-year bonds at a price of…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: Diaz Company issued bonds with a face value of $127,000 on January 1, Year 1. The bonds had a stated…

A: As you have asked multiple sub-parts we can solve only first three sub-parts for you please repost…

Q: On January 1, 2020, Cullumber Company issued $400,000, 10%, 10-year bonds at face value. Interest is…

A: Bonds- These are the debts of a company on which interest is payable after a fixed interval i.e.…

Q: On January 1, a company issued and sold a $391,000, 7%, 10-year bond payable, and received proceeds…

A: Lets start with basic understanding. When bond is issued for less than its face value then it is…

Q: On the first day of the fiscal year, a company issues a $3,900,000, 8%, 7-year bond that pays…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

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: Journalize the bond issuance. If an amount box does not require an entry,

A: Pass necessary journal.

Q: On August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is…

A: As per accrual principle of accounting, all the expenses need to be accounted for within the…

Q: iaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated…

A: Bonds payable are debt instruments issued to raise money. When the contract rate is more than the…

Q: On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds…

A: Interest expense = Interest on Bonds + Discount on bonds payable amortized = ($400,000 x 7% x 6/12)…

Q: On January 1, 2025, Martinez Company issued $1,800,000 face value, 7%, 10-year bonds at $1,932,482.…

A: Bond is the amount that has been borrowed by the company on which a specified percentage of interest…

Q: andings Glassware Company issues $1,066,000 of 16%, 10- year bonds at 94 on February 28, 2025. The…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On January 1, 2022, Oriole Company issued $430,000, 8%, 10-year bonds at face value. Interest is…

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

Q: Medhurst Corporation issued $89,000 in bonds for $86,000. The bonds had a stated rate of 8% and pay…

A: A journal serves as the company's official record and lists all transactions in reverse…

Q: The Melon Company issues $519,000 of 8%, 10-year bonds at 103 on March 31, Year 1. The bonds pay…

A: Balance sheet is a financial statement that shows list of final ending balances of assets,…

Q: Diana Inc. issued $300,000 of its 5%, 5-year bonds for $287,215 when the market rate was 6%. The…

A: Bond issued at $ 287215 and face value of bond is $300000. Discount on bond issue = $300000-$287215=…

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 90 bonds with a face value of $1,060 for $99,400. The bonds…

A: Solution: journal entry to record the first payment to the bondholders is as  under: