On September 1, 20x1, an entity issues bonds with face amount of P8,000,000 for P9,105,022, including accrued interest. The bonds are dated January 1, 20x1 and pay annual interest of 11% every December 31. The effective interest rate is 9%. ◦Requirements: ◦A. Compute for the initial carrying amount of the bonds. ◦B. Provide the entry on September 1, 20x1 to record the issuance of the bonds. ◦C. Compute for the interest expense in 20x

Q: On January 1, Year 1, Pierce Corporation issued $25,000 in 8%, 5-year bonds payable at 102. Interest…

A: Assets, liabilities and stockholders equity are recorded in the Balance Sheet. Income and expenses…

Q: Trog Industries pays and records the semiannual interest on its $520,000, 10-year, 6% bonds…

A: Here in this question, we are required to make journal entry for interest payment and discount…

Q: Problem 1: On January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129.…

A: Here asked for multi question we will solve for first question as per guidelines.  If you need…

Q: On the first day of the fiscal year, a company issues a $1,400,000, 10%, 7-year bond that pays…

A: Bond Premium is amortized can be amortized through Straight line method and Effective interest rate…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $56,500 face value, a stated rate of…

A: Bonds Payable: Bonds Payable is an long term debt issued by the government and company's to raised…

Q: On January 1, Oriole Corporation issued $4100000, 14%, 5-year bonds with interest payable on…

A: The bonds payable are the long-term liabilities of the business. The bonds are issued at premium…

Q: On the first day of the fiscal year, a company issues a $5,100,000, 12%, 6-year bond that pays…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, $925,000, 5-year, 10% bonds, were issued for $897,250. Interest is paid semiannually…

A:

Q: n January 1, 2011, an entity issues bonds with face amount of P5,000,00 for P5,733,129. The bonds…

A: Bond / Debentures : It is loan which is taken by the company from the public by issuing a…

Q: On November 1, 20x4, Madison Corp. issued ₱800,00 of its 10-year, 8% term bonds dated October 1,…

A: Bond interest rate is the total interest expense paid on an organization's bonds due over a…

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

A:

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: 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: 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 the fiscal year, a company issues a $8,900,000, 8%, 5-year bond that pays…

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 $910,000, 8%, 5-year bond that pays…

A: Bonds are debt instruments issued by government or a company to borrow funds from individual or…

Q: On January 1, the first day of the fiscal year, a company issues an $1,350,000, 11%, five-year bond…

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

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: QUESTION 7 On the first day of the fiscal year, a company issues a $960,000, 8%, 5-year bond that…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: On the first day of the fiscal year, a company issues an $2,250,000, 9%, five-year bond that pays…

A: Premium on Bonds Payable = Issue value of bonds - face value of bonds = $2,379,570 - $2,250,000 =…

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: Brussels Enterprises issues bonds at par dated January 1, 2021, that have a $2,500,000 par value,…

A: Bonds are the securities issued by the entity for the purpose of raising funds from the market.…

Q: a. On January 1, Cardano Berhad issued RM1,200,000, 6%, 5-year bonds at face value. Interest is…

A: Since you have posted two different question, we will do the first one for you. To get the other…

Q: On the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays…

A: Since it is a semiannual bond interest will be paid in 10 installments  ( 5 years × 2 )  The bond is…

Q: Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds:…

A: Bonds refer to borrowing security that is issued by the company to raise funds from the market at a…

Q: A company issues bonds with a face value of $12 million on June 1, Year One, for the face value plus…

A: The accrued interest is the amount of interest due for payment. The accrued interest is reported as…

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 the first day of the fiscal year, a company issues an $2,750,000, 8%, five-year bond that pays…

A: Interest is calculated as a percentage of the loan (or deposit) balance, which is paid to the lender…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $57,750 face value, a stated rate of…

A: Interest expense is the amount which is incurred on the amount used by the entity. Interest expense…

Q: On the first day of the fiscal year, a company issues a $8,800,000, 11%, 7-year bond that pays…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: Question a. On January 1, Cardano Berhad issued RM1,200,000, 6%, 5-year bonds at face value.…

A: Bond is a liability . They are issued by the company so that it can raise the amount required . On…

Q: On January 1, Year 1, Residence Company issued bonds with a $50,000 face value. The bonds were…

A: Bonds payable are long-term liabilities that a company records when it issues bonds to raise funds.…

Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…

A: Bonds are issued by the company to meet the financial requirements of the company without losing its…

Q: On January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond…

A: Total premium on bonds issue = Issue value - Face value of bonds = $2,379,360 - $2,250,000 =…

Q: On January 1, the first day of the fiscal year, a company issues an $1,800,000, 4%, five-year bond…

A: Journal: Recording of a business transactions in a chronological order.

Q: On March 31, 20x7, KEEPU issued for P1,774,000, P2,000,000 face amount of its 10%, P1,000 bonds. The…

A: Interest method to amortize bond discount is a process in which the discount on issue of bond is…

Q: On January 1, $877,000, five-year, 10% bonds, were issued for $850,690. Interest is paid…

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

Q: On January 1, Year 1, Reese Incorporated issued bonds with a face value of $170,000, a stated rate…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.