Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. Semiannual Period-End Unamortized Discount Carrying Value (0) January 1, issuance $13,466 $186,534 (1) June 30, first payment 11,782 188,218 (2) December 31, second payment . 10,098 189,902

Q: Wookie Company issues 9% , five-year bonds, on January 1 of this year, with a par value of $109,000…

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Q: On the first day of the fiscal year, a company issues a $2,000,000, 10%, 9-year bond that pays…

A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…

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A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300

Q: Issuance of the bond  First annual interest payment (record as separate entry from premium…

A: Working: Premium on Bonds Payable = Issue price of bonds - Face value of bonds = $2,125,000…

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, 20XX, Cisco Corporation issued a $600,000, 9%, 5-year bond for $576,834. The bonds…

A: Bond's discount or premium is caused due to difference between market rate and couporate.

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

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Q: On  January of the current year, Banek Inc issued $350,000 of 8% nine year bonds for $309,086, which…

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Q: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $415,000, 7%, 10-year bond that pays…

A: Premium on Bond Payable = $435,800 - $415,000 = $20,800   Interest is paid semiannually for 10…

Q: On January 1, Remington Corp issued $500,000 of 15-year, 10% bonds payable, yielding an effective…

A:

Q: On the first day of the fiscal year, a company issues a $3,600,000, 9%, 4-year bond that pays…

A: The bonds are issued at discount when market rate is lower than the coupon rate of bonds payable.…

Q: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000…

A: Unamortized discount is the amount of discount on bonds payable which is not yet amorized as the…

Q: On January 1, Year 1, Parker Company issued bonds with a face value of $65,000, a stated rate of…

A: Bond is a financial instrument which is issued by the large organization to raise the funds. Bonds…

Q: On June​ 30, Power Company issues 5%​, five​-year bonds payable with at face value of $60,000. The…

A: Journal entry : It is prepared to record the financial and non financial transaction of the business…

Q: On January 1, Year 1, Victor Company issued bonds with a $875,000 face value, a stated rate of…

A: Lets understand the basics. When bond is issued at less than the face value of bond then bond is…

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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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

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

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: Paulson Company issues 7%, four-year bonds, on January 1 of this year, with a par value of $109,000…

A: Journal entry is the primary step to record the transaction in the books of accounts. Interest…

Q: On the first day of the fiscal year, a company issues an $302,000, 8%, 5-year bond that pays…

A: Under the straight line method of amortization, premium or discount of bond need to amortize equally…

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, Cullumber Inc. issued $4200000, 9% bonds for $3943800. The market rate of interest for…

A: Lets understand the basics. When bond is issued for more than or less than its face value then…

Q: On the first day of the fiscal year, a company issues an $988,000, 9%, five-year bond that pays…

A: On amortization of bond discount using the straight-line method, the discount is amortized…

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: Yale Corporation issued $54,000 , 8 % (cash interest payable semiannually on June 30 and December…

A: A bond is a fixed-income investment that represents a loan made by an investor to a borrower,…

Q: ale Corporation issued $54,000, 8% (cash interest payable semiannually on June 30 and December 311…

A: Issue price of the bonds = Present value of principal + Present value of interest paymentswhere,…

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: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…

A: The question is based on the concept of the issue of securities. As per Bartleby guidelines we are…

Q: On the first day of the fiscal year, a company issues a $5,100,000, 9%, 4-year bond that pays…

A: Bonds issued at discount: A bond said to be issued at discount when its issue price is less than…

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 $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: mortizes any bond discount or premium using the effective o yield 9%, provide journal entries to be…

A: A Bond is a fixed-income investment that represents a loan made by an investor to a borrower,…

Q: On the first day of the fiscal year, a company issues a (n) $935,000, 7%, 5-year bond that pays…

A: The objective of the question is to journalize the entry for the first interest payment and the…

Q: the current fiscal year (for the issuer’s books):   (a) Issuance of the bonds. (b) First annual…

A: No. Particulars  Debit Credit a         Cash 2125000     Premium on bonds payable   125000…

Q: Yale Corporation issued $60,000, 8% (cash interest payable semiannually on June 30 and December 31)…

A: A Bond is a fixed-income investment that represents a loan made by an investor to a borrower,…

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: A company issued 10%, 10-year bonds with a par value of $1,150,000 on January 1, at a selling price…

A: Bonds are presented at the carrying value in the balance sheet. Bond selling price and face value…

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 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 -…