The December 31, 2021 balance sheet of Kingbird Co. included the following items: 7.5% bonds payable due December 31, 2029   $3,540,000   Unamortized discount on bonds payable   141,600   The bonds were issued on December 31, 2019 at 95, with interest payable on June 30 and December 31. (Use straight-line amortization.) On April 1, 2020, Wolfe retired $708,000 of these bonds at 101 plus accrued interest. Prepare journal entries to record the above retirement. (Credit account titles are automatically indented when the amount is ente

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A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

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A: Long term debt is the item shown on the liabilities side of the Balance Sheet under the heading…

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A: A bond is the long-term debt of an entity. The bonds are paid in more than one year. The bonds…

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A: The price of a bond is the present value of its cash flows. For a coupon bond, the cash flows are…

Q: Casey Company retired $500,000 face value, 9% bonds on June 30, 2021 at 96. The carrying value of…

A: Redemption of bonds : When bonds are redeemed, generally face value of the bond is payable to the…

Q: The 8% bonds payable of Bonita Industries had a net carrying amount of $2860000 on December 31,…

A: Computation of the loss on the retirement of the bonds are as follows:

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A: Calculate the semiannual interest income using the effective-interest method:The effective interest…

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A: Explanation: We should compare the amount we pay for the bonds and the book value of the bonds:…

Q: Cullumber Corporation issues $512,000 of 9%, 5-year bonds on January 1, 2022, at 105. Assuming that…

A: Under the straight line method of premium amortization total value of amortization is distributed…

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A: Amortization -The process of depreciating the value of an intangible asset throughout its useful…

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A: Bonds are issued either by government entities or by corporations. The premium on bonds arises when…

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A: Bonds payable: Bonds payable is a type of instrument where by an amount is borrowed for a fixed…

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A: Journal is chronological record of financial transactions. It includes details like the date,…

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A: The bonds payable are the financial instruments for the business.  The bonds are issued to raise…

Q: 1. Without making journal entries, compute the carrying amount of the bonds payable at July 31,…

A: Bond retirement means paying off the bond obligations to the investors. The bond requirement may…

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

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A: Bond's purchased as available-for-sale are to be recorded at their fair value in books.

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Q: The Flounder Company issued $260,000 of 11% bonds on January 1, 2025. The bonds are due January 1,…

A: Bonds are issued either by government entities or by corporations. The premium on bonds arises when…

Q: What loss should Mirada record on the redemption of bonds?

A: Bonds are the financial instruments which shows the amount of ownership of debt in a business…

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A: The following computations are done for Polk Incorporation.

Q: Sheridan Company received proceeds of $812000 on 10-year, 8% bonds issued on January 1, 2019. The…

A: In the straight-line method of amortization, an equal amount of discount or premium on the issue of…

Q: The Blossom Company issued $310,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…

A: Face value of bonds$310,000Issued at99Proceed received from issuance of bonds ($310,000 *…

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A: A journal entry is used to document any commercial transaction in the accounting records of a…

Q: erest Receivable Bond Carrying Or Interest Discount Amount of Cash Received Revenue Amortization…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

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A: Bonds Issue price = Face value of bonds x issue price = $260,000 x 98/100 = $254,800

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A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

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A: Retirement of bonds occurs when the company repurchases its own issued bonds.

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A: Definition:   Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…

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A:

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A: In order to determine the stated interest rate, the Interest payment is required to be divided by…