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Q: A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid…
A: Discount on bonds payable:The excess of par value over the carrying value of the bonds will be…
Q: The following amortization and interest schedule reflects the issuance of 10-year bonds by Wildhorse…
A: The bonds are the financial instruments that are issued to raise money from the market or investors.…
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Q: On January 1, 2021, Romania Company acquired 3-year bonds with a face amount of P2,000,000 for…
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A: Journal entries are the entries to be recorded in the accounting books of the business for all the…
Q: On June 30, 2019, ABC acquired a non-interest bearing, 3-year, P6,000,000 face value serial bonds…
A: Note means an instrument acknowledging the debt due from one company to another company with…
Q: On January 1, 2019, company acquired 2,000,000 face amound bonds dated January 1, 2022. The bonds…
A: Introduction' Bond is a investment securities that is issued by company where investors lends money…
Q: On January 1, 2020, ABC Co. acquired P1,000,000 face amount, 10% bonds for P951,963. The principal…
A: Value on Decemeber 31, 2021 = (P103 x 10000) = P1030000 Value on the date of purchase = P951963
Q: The December 31, 2021, statement of financial position of Bordeaux Corporation includes the…
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Q: Retirement of bonds On December 31, 2019, LaBrea Corp.'s statement of financial position included…
A: The entity issued bonds at $95 and their face value is $100 so the entity needs to revise its…
Q: The Marin Company issued $240,000 of 13% bonds on January 1, 2020. The bonds are due January 1,…
A: The price of a bond is the present value of its cash flows. For a coupon bond, the cash flows are…
Q: On January 1st, 2021, Lemon Corporation issued $800,000 of 20 year 10% bond at 104. Interest was…
A: Bonds are a form of loan or debt issued by the company, on which it has to make interest payments.…
Q: On 1 January 2019 the company "A" S.A. issued bonds worth 500,000 at an interest rate of 4%, lasting…
A: Interest Expense = 500,000 x 4% = 20,000
Q: n January 1, 2020, Ehrlich Corporation issued 7%, 15-year bonds with a face amount of $900,000 at…
A: The bonds are the financial instruments that are issued to raise money from the market or investors.…
Q: On January 1, 2020, Sheridan Company sold to Carla Vista Co. $780000 of its 8% bonds for $690531 to…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On January 1, 2019, Dhaka Company issued $1,000,000 of 6% bonds due on January 1, 2025. Interest on…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.
Q: On January 1, 2021, ABC Company issued a $500,000, 8%, 10-year bond at the yield of 6%. Interest is…
A: Debt instruments that a firm issues to investors are called bonds. It is equivalent to the…
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…
Q: On January 1, 2019, Hackman Corporation issued $600,000 face value 6% bonds dated January 1, 2019,…
A: Bonds payable are long-term liabilities that are issued for a fixed term at a fixed rate of…
Q: Crazy Corporation issued $300,000 of 10%, 20-year bonds at 106 on January 1, 2012. Interest is…
A: The bond issue premium represents the excess of bonds proceeds on issue over the face value of the…
Q: 16. Perez Company sold five-year, 8% bonds on October 1, 2021. The face amount of the bonds was…
A: The bonds might be issued at a premium or a discount. Bonds are issued at a premium when the cash…
Q: Cullumber Corporation issued $7,680,000 of 8% bonds on October 1, 2024, due on October 1, 2029. The…
A: The bonds can be issued at par or premium, when the bonds are issued at discount and it can be…
Q: Robin Corporation retires its $800000 face value bonds at 104 on January 1, following the payment of…
A: Redemtption value refers to the price which is to be considered while purchasing the security for…
Q: A company issued a 3,000,000 6-year bonds dated January 1,2021, with a stated interest rate of 11%.…
A: The bond valuation refers to determining the bond's current price, Yield To Maturity, Current yield,…
Q: Hillside issues $1,500,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…
A: In this question, information related to bonds was given, on the basis of which we have to make an…
Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…
A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…
Q: The Splish Company issued $330,000 of 7% bonds on January 1, 2020. The bonds are due January 1,…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Journal entry to record the second period of interest, June 30, Matrix would record a credit to…
A: Given information is: On January 1, 2019, Matrix, Inc. purchased as an investment OMR 22,000, of 9%,…
Q: On January 1, 2021, Sunland Company sold $4900000 of its 10% bonds for $4337950 to yield 12%.…
A: $4,337,950 is the present value of bond. Yield is 12 %, semiannually.
Q: On January 1, 2018, Naomi, Inc. issued $1,000,000, 4% bonds when the market rate was 6%. Interest…
A: Honor code- “Since you have posted a question with multiple sub-parts, we will provide the solution…
Q: On January 1, 2022, Davison Corp. issues $500,000 of 9% 15-year bonds that pay interest year. Bonds…
A: Issue price of bonds would be present value of interest annuity & maturity amount at market rate…
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A: Step 1: Preparation of journal entry on December 31, 2026.Date Account Titles and…
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A: Bond amortization is systematically writing off Bond amortization Premium/Discount over the life of…
Q: The Blossom Company issued $260,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On January 1, 2019, Naomi, Inc. issued $2,000,000, 4% bonds when the market rate was 6%. Interest is…
A: Bonds are the security funds issued by the company to the public. It contains a fixed rate of…
Q: e. On the basis of the schedule above, prepare the journal entry or entries to record the bond…
A: Please find the required journal entries based on the amortization table provided in the question in…
Q: The Blossom Company issued $260,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…
A: Bonds Issue price = Face value of bonds x issue price = $260,000 x 98/100 = $254,800
Q: The Martinez Company issued $230,000 of 12% bonds on January 1, 2020. The bonds are due January 1,…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
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A: When issue price is greater than the face value then it means the bonds are issued at a premium. The…
Q: The December 31, 2021 balance sheet of Blossom Co. included the following items: 7.5% bonds payable…
A: Journal entries are made to record the transactions as the first process in the books of accounts…
Sunflower Co. issues on December 31 2022, 15-year bonds of P5,000,000 for P5,380,304 to yield 10%. Interest is payable annually on December 31, at 11%. On June 30, 2024, Sunflower retires 2,000 of its own P1,000 bonds at 96 including accrued interest. The accounting period of Sunflower is the calendar year.
Sunflower Company’s gain (loss) on retirement of bonds is?
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- On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. answer is 87,000 how do you get there?On February 1, 2022, Mojito, Inc. issued $2,000,000, 5% bonds for $2,165,000. Interest is payable semiannually on January 31 and July 31 with the bonds maturing on February 1, 2032 (10-year bonds). The bonds are callable at 102. On February 1, 2022, Mojito retired $750,000 of the bonds at the call price. Required: Prepare the journal entry for the issuance of the bonds Prepare any required journal entries for interest payments on July 31, 2022 and January 31, 2023. Mojito uses straight-line amortization to amortize any discount or premium. Prepare the required entry to record the retirement of the bonds on February 1, 2023.On January 1, 20x1, SENECTITUDE OLD AGE Co. issued its 12%, 3-year, P2,000,000 convertible bonds at 110. Each P1,000 bond is convertible into 8 shares with par value per share of P100. Principal is due on December 31, 20x3 but interests are due annually at each year-end. When the bonds were issued, they were selling at a yield to maturity market rate of 10% without the conversion option. On December 31, 20x2, half of the bonds were converted into equity. Conversion costs incurred amounted to P20,000. Requirements: a. Provide the pertinent entries. b. Net increase in equity as a result of the conversion. c. Net increase in "share premium" general account as a result of the conversion.
- On June 1, 2020, LM company purchased debt investment at amortized cost, 8,000 of P1,000 face value bonds for P7,383,000. The bonds were purchased to yield 10%. Interest is payable semi-annually on December 1 and June 1. On June 1, 2021, LM sold the bonds for P7,850,000. This amount includes the appropriate accrued interest. How much is the gain or loss on the sale of the debt investment?On January 1, 2021, Shay Company issues $300,000 of 10%, 15-year bonds. The bonds sell for $293,250. Six years later, on January 1, 2027, Shay retires these bonds by buying them on the open market for $315,750. All interest is accounted for and paid through December 31, 2026, the day before the purchase. The straight-line method is used to amortize any bond discount. 1. What is the amount of the discount on the bonds at issuance?2. How much amortization of the discount is recorded on the bonds for the entire period from January 1, 2021, through December 31, 2026?3. What is the carrying (book) value of the bonds as of the close of business on December 31, 2026?4. Prepare the journal entry to record the bond retirement.On December 31, 2020, the liability section of Martin Luther Company's statement of financial position included 10% bonds payable of P10,000,000 and unamortized premium on bonds payable of P180,000. Further verification revealed that these bonds were issued on December 31, 2018 and will become due on December 31, 2028. Interest at 12% is payable every December 31. On April 1, 2021, Martin Luther retired P4,000,000 of these bonds at 97 plus accrued interest. How much was the gain or (loss) on the retirement of bonds on April 1, 2021? Enclosed in parenthesis in case of loss.
- On July 1, 2018, Miniature Company has bonds with balances as shown below. Bonds Payable 65,000 Discount Payable on Bonds 3,250 If the company retires the bonds for $66,150, what will be gain or loss on the retirement?Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022, and paid interest annually on January 1. The bonds were sold at 98. At December 31, 2022, $12,480 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2022. (Enter account name only and do not provide descriptive information.) Crane ElectricBalance Sheet (Partial)choose the accounting period select an opening section name enter a balance sheet item $enter a dollar amount select between addition and deduction : enter a balance sheet item enter a dollar amount $enter a subtotal of the two previous amountsKrause Corporation issued $2,300,000, 10-year, 6% bonds for $2,231,000 on January 1, 2022. Interest is paid semiannually on January 1 and July 1. The corporation uses the straight-line method of amortization. Krause's fiscal year ends on December 31. The amount of discount amortization on July 1, 2022, would be OA. $138,000. OB. $69,000. OC. $6,900. OD. $3,450.
- VishnuOn January 1, 2020, Ehrlich Corporation issued 7%, 10-year bonds with a face amount of $800,000 at 97. Interest is payable annually on January 1. Instructions Prepare the following entries: record the issuance of the bonds on 1/1/20 first annual interest accrual on 12/31/20 amortization, assuming that the company uses straight-line amortization on 12/31/20 payment of interest on 1/1/21 What is the unamortized balance of the discount account at 1/1/21? What is the carrying value of the bond at 1/1/21?.The 10% bonds payable of Crane Company had a carrying amount of $4060000 on December 31, 2020. The bonds, which had a face value of $3900000, were issued at a premium to yield 8%. Crane uses the effective-interest method of amortization. Interest is paid on June 30 and December 31. On June 30, 2021, several years before their maturity, Crane retired the bonds at 104 plus accrued interest. The loss on retirement, ignoring taxes, is $0. O $28600. O $46200. $156000.
