On the first day of the fiscal year, a company issues a $674,000, 7%, 10-year bond that pays semiannual interest of $23,590 ($674,000 x 7% x 1/2), receiving cash of $707,700. Journalize the entry for the first interest payment and amortization of premium using the straight-line method. If an amount box does not require an entry, leave it blank.
Q: lendar year. Required: For all journal entries: If an amount box does not require an entry, leave…
A: Given Danzer Industries Inc. issued $56,000,000 of 20-year, 11% bonds at a market (effective)…
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: Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: Solution: Premium on issue of bond is computed as bond issue price less face value of bonds…
Q: Sheffield Company issued $648,000 of 10%, 20-year bonds on January 1, 2020, at 104. Interest is…
A: Proceeds from issue of bonds = Face value of bonds x issue price /100 = $648000*104/100 = $673920
Q: On the first day of the fiscal year, a company issues $71,000, 11%, six-year installment notes that…
A:
Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…
A: Solution:- Given, Company issues =$500,000, 8%, 10-year bond that semiannual Interest = $20,000…
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: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: Disclaimer: "Since you have asked multiple questions, we will solve the first three questions for…
Q: On the first day of the fiscal year, a company issues $32,000, 11%, five-year installment notes that…
A: The journal is the book in which the company will record the transactions in chronological manner.…
Q: Journalize the first interest payment and the amortization of the related bond discount. Round to…
A: A bond is said to be issued at a discount when the buyer pays an amount which is less than the par…
Q: the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiannual…
A: Bond payable is financial instrument which is used to raise funds for financial obligations. These…
Q: On January 1, the first day of the fiscal year, a company issues a $2,400,000, 4%, five-year bond…
A: Annual Interest=2,400,000×4%=96,000
Q: On the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays…
A:
Q: On January 1, 2019, Castle Services issued $177,000 of six-year, 12% bonds when the market interest…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable. The…
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 the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7%…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
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: Campbell Inc. produces and sells outdoor equipment. On July 1, Year 1, Campbell issued $23,500,000…
A: Journal entries refers to the systematic documentation of the financial transactions of the company…
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: On January 1, Luther Co. issued a $1,000,000, 8%, 5-year installment note payable. The first note…
A: Notes Payable:- It is a Current liability where one person is liable to pay and another one is…
Q: On the first day of the fiscal year, a company issues a $3,300,000, 12%, 6-year bond that pays…
A: The bonds payable are the financial instruments that are used to raise money from the market or…
Q: On January 1, the first day of the fiscal year, Shiller Company borrowed $120,000 by giving a…
A: Notes payable represent a promissory note issued by the borrower to repay the principal amount…
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 May 1, Cedar Inc. purchases $100,000 of 10-year, Madison Corporation 6% bonds dated March 1 at…
A: Semi annual interest is payable on Sept 1 and hence also on March 1. For Interest Receipt entry, we…
Q: ay of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest…
A: Solution: Semiannual interest amount = $800,000*6%*6/12 = $24,000 Discount amortization = ($800,000…
Q: Sheffield Company issued $648,000 of 10%, 20-year bonds on January 1, 2020, at 104. Interest is…
A: Introduction: On January 1, 2020, Sheffield Company issued $648,000 of 10 percent, 20-year bonds at…
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: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…
A: Face value of bond = $ 1,900,000 Issue price of bond = $ 1,641,812…
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, 2019, Booth Sales issues $10,000 in bonds for $10,900. These are 5-year bonds with a…
A: Semiannual interest payment = Face value of bonds * Annual stated rate * 6/12 Semiannual premium…
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 January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $850,000, 8%, 10-year…
A: Journal is the book of original entry in which all the financial transactions of the business are…
Q: Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account.…
A: Journal Entry is the primary entry of business transactions. Every transaction has a dual effect…
Q: On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays…
A: Discount on bonds issue = Face value of bonds - issue price = $4,900,000 - $4,440,130 = $459,870
Q: 00 ($5,000,000 × 6% × ½ year), receiving cash of $5,000,000. a. Journalize the entry to record the…
A: Answer : Prepare journal entries :
Q: n January of this year, Bottlebrush Company issues a $1,000,000, 6%, 8 year bond that pays…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays…
A: When a bond issued for a amount more than its face value then the excess amount received would be…
Q: On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a seven-year, 7%…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On January 1 of Year 1, Bryson Company obtained a $147,750, 4-year, 7% installment note from…
A: The question is based on the concept of Financial Accounting.
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: (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an…
A: Journal entry :- Journal entry is the initial form of recording a transaction in any business. The…
Q: On the first day of the fiscal year, a company issues an $565,000, 9%, 5-year bond that pays…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
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- On the first day of the fiscal year, a company issues $69,000, 9%, seven-year installment notes that have annual payments of $13,710. The first note payment consists of $6,210 of interest and $7,500 of principal repayment. a. Journalize the entry to record the issuance of the installment notes. b. Journalize the first annual note payment. For a compound transaction, if an amount box does not require an entry, leave it blank.Oriole Company issued $636,000 of 10%, 20-year bonds on January 1, 2020, at 103. Interest is payable semiannually on July 1 and January 1. Oriole Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020. Date Account Titles and Explanation 1/1/20 7/1/20 12/31/20 Debit CreditBramble Company issued $504,000 of 11%, 20-year bonds on January 1, 2020, at 101. Interest is payable semiannually on July 1 and January 1. Bramble Company uses the straight-line method of amortization for bond premium or discount. Prepare the journal entries to record the following. (If no entry is required, select "No Entry" for the account titles and enter Ofor the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) The issuance of the bonds. (b) The payment of interest and the related amortization on July 1, 2020. (c) The accrual of interest and the related amortization on December 31, 2020. Date Account Titles and Explanation Debit Credit 1/1/20 7/1/20 12/31/20
- On January 1, the first day of the fiscal year, a company issues a $1,550,000, 12%, five-year bond that pays semiannual interest of $93,000 ($1,550,000 x 12% x %), receiving cash of $1,503,140. Required: Journalize the first interest payment and the amortization of the related bond discount. 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 enteredOn the first day of the fiscal year, a company issues $45,000, 8%, six-year installment notes that have annual payments of $9,734. The first note payment consists of $3,600 of interest and $6,134 of principal repayment.a. Journalize the entry to record the issuance of the installment notes.b. Journalize the first annual note payment.On the first day of the fiscal year, Shiller Company borrowed $85,000 by giving a sevenyear,7% installment note to Soros Bank. The note requires annual payments of $15,772, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $5,950 and principal repayment of $9,822.a. Journalize the entries to record the following:1. Issued the installment note for cash on the first day of the fiscal year.2. Paid the first annual payment on the note.b. Explain how the notes payable would be reported on the balance sheet at the end of the first year.
- On the first day of the fiscal year, Shiller Company borrowed $32,000 by giving a 5-year, 11% installment note to Soros Bank. The note requires annual payments of $8,783, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $3,520 and principal repayment of $5,263. Journalize the entries to record the following: Question Content Area a1. Issued the installment note for cash on the first day of the fiscal year. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blank Question Content Area a2. Paid the first annual payment on the note. If an amount box does not require an entry, leave it blank. blank Account Debit Credit blankOn the first day of the fiscal year, a company issues a $7,300,000, 8%, 10-year bond that pays semiannual interest of $292,000 ($7,300,000 × 8% × ½), receiving cash of $5,991,433. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays semiannual interest of $105.000 ($3,500,000 x 6% x V½), receiving cash of $3,350,000. Journalize the first interest payment and the amortization of the related bond discount. Refer to the Chart of Accounts for exact wording of account titles.
- On the first day of the fiscal year, a company issues $32,000, 11%, five-year installment notes that have annual payments of $8,658. The first note payment consists of $3,520 of interest and $5,138 of principal repayment. Question Content Area a. Journalize the entry to record the issuance of the installment notes. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - Question Content Area b. Journalize the first annual note payment. If an amount box does not require an entry, leave it blank. blank - Select - - Select - - Select - - Select - - Select - - Select - Adieu Company reported the following current assets and current liabilities for two recent years: Dec. 31, 20Y4 Dec. 31, 20Y3 Cash $1,020 $960 Temporary investments 1,200 1,400 Accounts receivable 820 940 Inventory 2,200 2,600 Accounts payable 1,900 2,200 a.…On the first day of the fiscal year, a company issues an $609,000, 10%, five-year bond that pays semiannual interest of $30,450 ($609,000 x 10% x 1/2), receiving cash of $572,500. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.On January 1, Gemstone Company obtained a $165,000, 10-year, 7% installment note from Guarantee Bank. The note requires annual payments of $23,492, with the first payment occurring on the last day of the fiscal year. The first payment consists of interest of $11,550 and principal repayment of $11,942. The journal entry to record the issuance of the installment note for cash on January 1 would include a a.debit to notes payable for $165,000 b.credit to notes payable for $165,000 c.debit to interest expense for $11,550 d.credit to interest payable for $11,550