Tomasovich Inc. issued bonds with a face value of $100,000 and a stated rate of 8%. Tomasovichreceived $102,500. The journal entry to record thistransaction includesGroup of answer choicesa credit to Bonds Payable for $102, 500a credit to cash for $102, 500a debit to cash for $100,000a credit to Premium on Bonds Payable for $2,500

Journal Entry is CrDrCash account $102,500To Bonds Payable account$100,000 To Premium on bonds…

Answered: Tomasovich Inc. issued bonds with a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Parrish Industries has bonds outstanding (originally sold for $5,400,000) in the amount of $6,000,000 with a current bond discount at 104 on the market at its year end. What should be the balance of the Fair Value Adjustment on Bonds Payable? Show your work. A. $840,000 debit balance B. $340,000 debit balance C. $840,000 credit balance D. $340,000 credit balance
Medhurst Corporation issued $89,000 in bonds for $86,000. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the first interest payment? If an amount box does not require an entry, leave it blank.
Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the company's journal entries
A $291,000 bond was redeemed at 98 when the carrying amount of the bond was $286,635. What amount of gain or loss would be recorded as part of this transaction? Select the correct answer. loss on bond redemption of $4,365. gain on bond redemption of $5,820. gain on bond redemption of $1,455. loss on bond redemption of $1,455.
Raghubhai
A $1,000,000 bond issue on which there is an unamortized premium of $71,600 is redeemed for $1,051,500. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331…
On Jan. 1, Year 1, Foxcroft Inc. issued 110 bonds with a face value of $920 for $105,200. The bonds had a stated rate of 10% and paid interest semi-annually. What is the journal entry to record the issuance of the bonds? If an amount box does not require an entry, leave it blank. Jan. 1 fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9
Blue Spruce Corp. issues $310,000 of bonds for $325,500. Prepare the journal entry to record the issuance of the bonds.
Blue Corporation issued 2,100 $1,000 bonds at 103. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling in the market at 98, and the warrants had a market price of $41.Use the proportional method to record the issuance of the bonds and warrants. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round your answers to 0 decimal places, e.g. 5,125.) Account Titles and Explanation Debit Credit enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount enter an account title enter a debit amount enter a credit amount
Instructions: Provide the journal entry where bonds were sold at a premium. Candlestick Inc. sold bonds for $105,000 (105% face value) rather than for $90,000.
Prepare journal entries to record the following transactions involving short-term debt investments.
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