On the first day of the fiscal year, a company issues a $5,100,000, 8%, 5-year bond that pays semiannual interest of $204,000 ($5,100,000 × 8% × ½), receiving cash of $5,312,072. Journalize the first interest payment and the amortization of the related bond premium Round to the nearest dollar If an amount box does not require an entry, leave it blank.

Q: Premium amortization On the first day of the fiscal year, a company issues a $6,000,000, 6%, 5-year…

A: Premium amortization refers to the bond premium in which the excess amount is paid as a premium over…

Q: A8

A: Step 1: Calculate the Semiannual Interest PaymentThe bond pays semiannual interest of…

Q: The bonds are issued at a price of $1,713,594. Required: 1. Prepare the January 1 journal entry to…

A: Journal entries refer to the concept of noting all the daily transactions of a company in its books…

Q: On the first day of the fiscal year, a company issues a $4,600,000, 6%, 10-year bond that pays…

A: Discount on bonds payable = face value of bonds - Issue price = $4600000-3702451 = $897,549

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%,…

A: Bonds are debt securities issued by companies or governments to raise capital. A bond sold at a…

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

A: Interest expense is the expense incurred by the company on the borrowed amount.

Q: miley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley…

A: Journal entry records the transactions of the business into the books of accounts of the entity and…

Q: On January 1, a company issues $500,000, 5-year, 12% bonds at 96 with interest payable on January 1.…

A: Given information:Face value of the bonds: $500,000Bonds issued at 96% of face value (discount at…

Q: Franklin Corporation issues $87,000, 10%, 5-year bonds on January 1 for $90,900. Interest is paid…

A: Bonds Payable - Bonds Payable are issued by the person or a company in need of cash. This is…

Q: On the first day of the fiscal year, a company issues a $8,600,000, 11%, 10-year bond that pays…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

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: Premium Amortization On the first day of the fiscal year, a company issues a $4,500,000, 7%, 6-year…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,300,000, 10%,…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: On the first day of the fiscal year, a company issues a $4,100,000, 6%, 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: None

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $4,600,000, 8%,…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: issues December 31. of 7%, 15-year bonds dated January 1, 2021, that pay interest semiannually on…

A: The bonds can be issued at discounts and premiums as well. The premium or discount on bonds can be…

Q: remium Amortization in the first day of the fiscal year, a company issues a $1,800,000, 9%, -year…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,000,000, 6%, 7-year…

A: Discount amortization is the process of allocating the discount on a bond over its remaining life.…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $1,500,000, 9%, 6-year…

A: The bonds are issued at discount when market rate is higher than the coupon bonds.

Q: Discount Amortization On the first day of the fiscal year, a company issues a $4,200,000, 10%,…

A:

Q: Discount Amortization On the first day of the fiscal year, a company issues a $5,500,000, 12%,…

A: Bonds are generally considered less risky than stocks or other equity investments. Bonds represent a…

Q: On the first day of the fiscal year, a company issues a $8,600,000, 10%, 6-year bond that pays…

A: Since, the bond have been issued at a price more than the face value, they have been issued at a…

Q: On the first day of the fiscal year, a company issues a $7,500,000, 9%, 9-year bond that pays…

A: Discount on bonds issue = Face value of bonds - issue value = 7500000-7061640 = $438,360

Q: (c) Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: Discount amortization On the first day of the fiscal year, a company issues a $2,500,000, 8%, 5-year…

A: Bond :— It is one of the type of securities that pays fixed periodic interest and face value at the…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,900,000, 8%,…

A: Discount amortization on bond: Bond discount amortization is the process of writing off a bond's…

Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…

A: Journal entries refers to the recording of the business activities into the books of accounts or…

Q: Entries for issuing bonds and amortizing premium by straight-line method Smiley Corporation…

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

Q: On January 1, 2019 Global Filter Corp. issued a $768,000, 6%, four-year bond. Interest is to be paid…

A: Bonds can be issued at discount and it happens when the market interest rate is higher than the…

Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…

A: Given, Issue price =$8,900,000 Cash received =$10,399,742   a. Journalize the entry to record the…

Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…

A: Semiannual interest payment = Face value of bonds  xrate of interest x no.of months / 12 =…

Q: Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest…

A: Bonds are issued by governments and corporations when they want to raise money. By buying a bond,…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $7,400,000, 12%, 5-year…

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

Q: On January 1, 2024, Katia Crafts issued 80,000, 6-year bonds with $1,000 face value. External…

A: Cash payment of Interest = Principal x rate x timeAnnual premium amortization = Premium on bonds…

Q: Premium Amortization On January 1, the first day of the fiscal year, a company issues an…

A: Bonds: It is also known as fixed-income security, which is a debt instrument created for the purpose…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $5,300,000, 8%,…

A: The bonds are issued at premium when market rate is higher than the coupon rate of bonds.

Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…

A: Amortization of Bond premium on straight line method =9,654,106-8,500,0008×2=1,154,10616=$72,132

Q: tries for issuing bonds and amortizing premium by straight-line method miley Corporation wholesales…

A: Bonds are the liability on which a specific percentage of interest has to be paid over the life time…

Q: Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $92,000…

A: The journal entries are prepared to record the transactions on a regular basis. The bonds are issued…

Q: Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest…

A: Bonds are not always issued at par. If the stated rate of the bond is less than the market rate,the…

Q: On the first day of the fiscal year, a company issues a $9,000,000, 11%, 7-year bond that pays…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…