Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid annually on December 31. 1. Record the bond issue. 2. Record the first interest payment on December 31, 2021.

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A: Carrying value of bonds = Beginning carrying value + Increase in carrying value

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A:

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A: When the bonds are issued at par, then there shall be no premium or discount on bonds payable.

Q: Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1,…

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A: A bond is a debt security that is always issued by a company, municipality, or government. It is a…

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A: GIVEN : Contract Rate = 8% Market rate = 5% Therefore Bonds are issued at premium INTEREST PAYMENT =…

Q: ed ten-year bonds with a face value of $5,000,000 and a stated interest rate of 6%, payable…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

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A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

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

A:

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A: Given the following information: Pretzelmania, Inc., issues 6%, 10-year bonds with a face amount of…

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A: Bond valuation is a method for figuring out an individual bond's hypothetical fair value. Bond…

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A: Calculate the present value of the principal amount as shown below:

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A: Journal entry is required to make to record event and transaction that are occured during particular…

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A: The par value of the bond =$320000 The issue price of the bond=$332988 So, the premium on the…

Q: elmania, Incorporated, issues 7%, 15-year bonds with a face amount of $64,000 for $58,467 on January…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $64,008 on January 1,…

A: 1.When bonds are issued at a price less than the face value, they are said to be issued at discount.…

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A: 1. Record the bond issue. Date Accounts & Explanation Debit Credit Jan 1, 2012 Cash $…

Q: On January 1, 2025, Paxton Planning Services issued $56,000 of 2% bonds that mature in five years.…

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

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A: a. Following is the journal entry of issuance of bonds:

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A: Introduction: Bonds are issued to finance ongoing maintenance as well as infrastructure upgrades.…

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A: Bond is the debt security that investors uses to reduce the risk and increase stable return from…

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