Soto Industries Inc. is an athletic footware company that began operations on January 1, 20Y3. The following are bond (held-to-maturity) transactions by Soto Industries Inc., which has a fiscal year ending on December 31: Record these transactions on page 10 20Y3 Apr. 1 Purchased S81,600 of Welch Co. 4%, 15-year bonds at their face amount plus accrued interest of $544. The bonds pay interest semiannually on March 1 and September 1. 1 Purchased S60.000 of Baley 8%, 10-year bonds at their face amount plus accrued interest of $200. The bonds pay interest semiannually on June May 1 and November 1. 1 Received semiannual interest on the Welch Co. bonds. Sept. 30 Sold $25.200 of Weich Co. bonds at 96 plus accrued interest of $84. 1 Received semiannual interest on the Bailey bonds. Nov. Dec. 31 Accrued interest on the Welch Co. bonds. 31 Accrued interest on the Bailey bonds. Record these transactions on page 11 20Y4 1 Received semiannual interest on the Weich Co. bonds. Mar. May 1 Recelived semiannual interest on the Bailey bonds. Required: 1. Joumalize the entries to record these transactions. Refer to the chart of accounts for the exact wording of the account tles. CNOW joumals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumals will automatical indent a credit entry when a credit amount is entered. Assume 360 days a year. Do not round your intermediate calculations and round final answers to the nearest dollar. 2. H the bond portiolo is clssifed as an avalable-for-sale investment, how would it be reported on the financial statements?

Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…

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

Q: On January 1, 200C, the Gabriella Corporation issued $800,000, 8%, 10-year bonds at 98. Interest is…

A: working note: 1.The straight-line amortization of an Discount on bond payable will be $1600 ($16000…

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

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

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 January 1, a company issued and sold a $393,000, 6%, 10-year bond payable, and received proceeds…

A: Introduction: When company issues bonds at discount, then the discount amount can be amortized over…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $56,500 face value, a stated rate of…

A: Bonds Payable: Bonds Payable is an long term debt issued by the government and company's to raised…

Q: On June 30, Jameson Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: A BOND IS A DEBT SECURITY UNDER WHICH THE BOND ISSUER OWES THE BOND HOLDER A DEBT INCLUDING INTEREST…

Q: terest expense shown on Jones' income statement for the year ending December 31, Year 1?

A: When bonds are issued at a discount , the total interest expense is the cash interest expense plus…

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: Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued…

A: Introduction: Premium on bonds: When receiving cash for the bonds issued is greater than face value…

Q: On the first day of the fiscal year, a company issues a $920,000, 7%, five-year bond that pays…

A: When the bonds will issue we receive cash , and we have to pay interest through out its duration…

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: Rushton Corp., a wholesaler of music equipment, issued $3,650,000 of 20-year, 14% callable bonds on…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: On September 30, Jose’s Jalapenos Inc., issued $1,000,000 of 10-year 9% bonds sated September 30,…

A: Journal entries are prepared to record the financial and non financial transactions of the business.

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 its fiscal year, Chin Company issued $13,200,000 of five-year, 6% bonds to…

A: Bond financing is an instrument for borrowing the funds. The borrower has to pay a fixed amount of…

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

A: Since it is a semiannual bond interest will be paid in 10 installments  ( 5 years × 2 )  The bond is…

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: On January 1, the first day of the fiscal year, a company issues a $550,000, 8%, 10-year bond that…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: On January 1, Year 1, Hackman Corporation issued $600,000 face value 6% bonds dated January 1, Year…

A: The objective of the question is to record the issuance of the bonds and the first two interest…

Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…

A: Bonds payable are the long-term liabilities which help organizations to raise funds for the long…

Q: Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $14,000,000 of…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is…

A: Bond is financial instrument which is used to raise funds for financial obligations. It can be…

Q: Franklin corporation issues $84,000, 8%, 5-year bonds on January 1, for $87,780. Interest is paid…

A: Proceed from issuance of bonds $87,780Less: Face value of bonds $84,000Premium on bonds payable…

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: On January 1, Year 1, Jones Company issued bonds with a $300,000 face value, a stated rate of…

A: Bonds payable: Bonds payable is a legal instrument in which one party promises in writing to pay a…

Q: Journal entry worksheet

A: A journal entry records a business transaction in the accounting system for an organization.It is a…

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: iaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated…

A: Bonds payable are debt instruments issued to raise money. When the contract rate is more than the…

Q: Salt Foods purchases fifty $1,000, 5%, 10-year bonds issued by Pretzelmania, Inc., for $54,088 on…

A: As it is semi annual bond interest is paid twice in a year  Bond is issued at a premium of $ 4088

Q: b. First interest payment on October 1, Year 1, and the amortization of bond premium for 2 months,…

A: Bonds:   Bonds are the financial debt instruments issued by the corporations to raise capital for…

Q: How much interest expense will Hanover report on its income statement on December 31, Year 1?

A: Income statement shows the net income or net loss calculated by deducting the expenses from the…

Q: On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays…

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

Q: Jacobs Company issued bonds with a $168,000 face value on January 1, Year 1. The bonds were issued…

A: The straight-line method of amortization allocates the discount evenly over the life of the bond.…

Q: On January 1, Year 1, Victor Company issued bonds with a $750,000 face value, a stated rate of…

A: Interest Expense :Interest Expense is the cost of borrowing money from banks and others. Lender…