Salt Foods purchases thirty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $27,868 on January 1. The market interest rate for bonds of similar risk and maturity is 7%. Salt Foods receives interest semiannually on June 30 and December 31. 1. & 2. Record the necessary entries regarding the bonds. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest whole number.)

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: Bramble Corp. issued 3,400 8%, 9-year, $1,000 bonds dated January 1, 2022, at face value. Interest…

A: Given:

Q: On the first day of the fiscal year, a company issues a $968,000, 8%, 10-year bond that pays…

A: Working Note: Total premium on Bonds = Issue value - Face value of the bonds = $1,016,400 - 968,000…

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 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 the first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays…

A: Journal entries refer to recording/ classifying the business transactions into books of accounts…

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: Schlitterbahn Waterslide Company issued 35,000, 10-year, 8 percent, $100 bonds on January 1 at face…

A: The journal entries can be made as follows :

Q: On the first day of the fiscal year, a company issues a $2,800,000, 8%, 8-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $5,100,000, 12%, 6-year bond that pays…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On the first day of the fiscal year, a company issues a $326,000, 6%, 10-year bond that pays…

A: BOND IS AN INSTRUMENT OF INDEBTEDNESS OF THE BOND ISSUER TO THE HOLDER .

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: On the first day of the fiscal year, a company issues a $874,000, 9%, 10-year bond that pays…

A: A record is often kept in the general ledger, but it can also be kept in a single account,…

Q: Give me correct answer with explanation..j

A: Detailed explanation:Given : Face Value of Bonds, $ 248,000Stated Interest of Bonds 6%, paid…

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: 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: On the first day of the fiscal year, a company issues a $616,000, 8%, 10-year bond that pays…

A: Cash interest = $24,640 Face value = $616,000Issue Price = $646,800Premium on issue of bond =…

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 the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays…

A:

Q: On the first day of the fiscal year, a company issues a $967,000, 8%, 10-year bond that pays…

A: A journal entry is used to record a business transaction in an organization's accounting records. A…

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: On the first day of the fiscal year, a company issues a $910,000, 8%, 5-year bond that pays…

A: Bonds are debt instruments issued by government or a company to borrow funds from individual or…

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: Discount Pizza retires its 7% bonds for $59,000 before their scheduled maturity. At the time, the…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

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 the first day of the fiscal year, a company issues a $990,000, 7%, 5-year bond that pays…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

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 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: On the first day of the fiscal year, a company issues a $4,200,000, 10%, five-year bond that pays…

A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.…

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: 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 the first day of the fiscal year, a company issues an $994,000, 7%, 5-year bond that pays…

A: Total discount on bonds issue =  Face value of the bonds - Issue value of the bonds = 994000-934400…

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

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

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

A: Premium on issue of bonds payable is the excess amount received by the company over the face value…

Q: On the first day of the fiscal year, a company issues a $883,000, 10%, 10-year bond that pays…

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

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: 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: (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.

Q: On the first day of the fiscal year, a company issues an $334,000, 8%, five-year bond that pays…

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

Q: On August 1, 2022, Bramble Corp. issued $482,400, 8%, 10-year bonds at face value. Interest is…

A: As per accrual principle of accounting, all the expenses need to be accounted for within the…

Q: On the first day of the fiscal year, a company issues a $970,000, 7%, 5-year bond that pays…

A: Journal entries refer to recording the daily business transactions into books of accounts. This…

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

A: Accounts title Debit Credit Interest Expense $55,775   Premium on Bonds Payable $2,425…

Q: On the first day of the fiscal year, a company issues a $896,000, 7%, 10-year bond that pays…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…