On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual interest of $175,000 ($5,000,000 × 7% x ½ receiving cash of $5,400,000.

Q: On the first day of the fiscal year, a company issues $2,000,000, 12%, five-year bond that pays…

A: Compute present value of the bonds as shown below:

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

A: Solution: When straight line Amortization is followed, the bond premium is based on total amount of…

Q: eginning inventory, purchases, and sales data for DVD players are as follows: Nov. 1 Inventory 10…

A: Lets understand the basics.Cost of goods sold and ending inventory can be calculated using,(1)…

Q: On the first day of the fiscal year, a company issues a $2,750,000, 8%, 5-year bond that pays…

A: Bonds are the form of loan or debt that is being issued by the company and on which regular interest…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6% five-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $8,500,000, 10%, 9-year bond that pays…

A: BOND Bond is a Financial Security which is generally Issued by the Corporations, Government &…

Q: On the first day of the fiscal year, a company issues a $2,000,000, 3.5%, 5-year bond that pays…

A: Journal entry means the entry in prime book with chronological order. Journal entry should have…

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 $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 January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that…

A: Requirement a:Prepare the journal entry to record issuance of the bonds.

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: On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays…

A: When bonds are issued at Premium then with each payment part of the premium balance is Amortize with…

Q: On the first day of the fiscal year, a company issues a $400,000, 6% 5-year bond that pays…

A: If bond issued at amount which is less than the face value then we can say that bond is issued at…

Q: On the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond that pays…

A: The journal entries are the first step of accounting process to record the transactions in the…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…

A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue 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 the first day of the fiscal year, a company issues a $1,000,000, 8%, five-year bond that pays…

A: Journal entry can be defined as the process of recording relevant business transaction into the…

Q: On the first day of the fiscal year, a company issues a $2,500,000, 4%, five-year bond that pays…

A: Bonds: Bonds are the long-term promissory notes that are represented by the company while borrowing…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 7%, 10-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $750,000, 7%, five-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $8,300,000, 10%, 8-year bond that pays…

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Given, Face value of bonds = $500,000 Issue price of bonds = $530,000

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

A: Formula: Interest amount = Bond value x Time period x Interest rate

Master Budget

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making. 

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.