Verizon Communications Ic., commonly known as Verizon, Is an American multinational telecommunications conglomerate. On January 1, 2020, Verizon Communications Inc. Issues $250,000, three-year, 8% bonds for $258,853. Prepare the Journal entry related to the issuance of the bond.
Q: 1. 2. 3. On January 1, 2022, 1,500, 9%, 5-year, $1,000 bonds dated January 1, 2022, were issued at…
A: Lets undertand the basics. Bonds can be issued at either, (1) Par value (2) At premium (3) At…
Q: On May 1, 2020, Forest Company issued 3,000 $1,000 bonds at 102. Each bond was issued with one…
A: Market Value of Warrants = No. of bonds x fair value = 3,000 x $30 = $90,000 Market Value of Bonds…
Q: [The following information applies to the questions displayed below.] On January 1, 2024, Twister…
A: A bond is a type of financial instrument issued by companies or governments to raise capital. When…
Q: Mellilo Corporation issued $4.4 million of 20-year, 9.5 percent bonds on July 1, 2021, at 98.…
A: Journal entry is the first stage of accounting process. Journal entry used to record business…
Q: On January 1, 2020, ABC Company issued 5,000 of its 12%, P1,000 face value bonds for P5,350,000…
A: Accrued Interest on Bond: Accrued interest is the amount of interest earned on a debt(Bond) which is…
Q: Required: Part 1 Record the following entries: (Do not round intermediate calculations. Round the…
A: Bond is a security issued by the company to raise finance in the company.It is a fixed interest…
Q: On July 1, 2020, Tealight Company issued 2,000 $ 1,000 bonds at 103. Each bond was issued with one…
A: The process of recording financial activity for the first time in the books of accounts is known as…
Q: On January 1, 2021, PRANCER Company was authorized to issue 12% bonds with a face amount of…
A: Bond Issue A bond is an instrument that was issued by the federal authority which was used by the…
Q: EWO Enterprises issues $4,500,000 of bonds payable.Required:Prepare the necessary journal entries to…
A: Journal is the book of original entry in which all the transactions of the business are recorded…
Q: Your investment department has researched possible investments in corporate debt securities. Among…
A: Face value of bonds = $100 millionPrice of BB Corp bonds = $109 millionPrice of DD Corp bonds = $100…
Q: Bayside Inc. prepares its financial statements in accordance with IFRS. On January 1, 2023, the…
A: Journal entry is the first step for preparing accounts of a business. It means recording daily…
Q: The following is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer…
A: Manufacturing overhead: All secondary expenditures incurred throughout the production process are…
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: Korean Corporation issued $2 million, 10-year, 6% bonds on January 1, 2021. 1) Prepare the entry…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds:…
A: Bonds are debt instruments issued by organizations to raise funds to meet various requirements. The…
Q: In its Dec. 31, 2020 statement of financial position, how much current liabilities should be…
A: Non-current liabilities, as the name suggests, are those obligations which an entity is not required…
Q: Shown are data from recent reports of two toy makers. Dollar amounts are stated in thousands. Toyco…
A: Since you have posted two different questions, we will do the first one for you. Please post the…
Q: The situations presented here are independent of each other. For each situation, prepare the…
A: given that, face value of bonds redeemed = $168000 rate if interest = 14.5% carrying value of the…
Q: A corporation issues $17 million in bonds on January 1, 2024. The bonds have a seven-year term and…
A: The bond amortization schedule is prepared to pay the periodic interest payment along with the…
Q: On February 1, 2023, Wege Corporation issued $900,000 in long-term bonds. The bonds will mature in…
A: In the journal entry for the issuance of the bond, The cash account is debited because cash…
Q: On March 1, 2024, Baddour, Incorporated, issued 10% bonds, dated January 1, with a face amount of…
A: Bonds payable refer to the debt instrument which is issued for fundraising. A company can issue…
Q: Record the second semiannual interest payment. Note: Enter debits before credits. Date General…
A: Journal Entry: A journal entries is a record of the business transactions within the accounting…
Q: Xonic Corporation issued $8.4 million of 20-year, 8 percent bonds on April 1, 2024, at 102. Interest…
A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…
Q: The Gorman Group issued $860,000 of 9% bonds on June 30, 2021, for $945,110. The bonds were dated on…
A: We have the following information of the Gorman Group: 9% $860,000 bonds issued for $945,110…
Q: Sheridan Company has issued three different bonds during 2022. Interest is payable annually on each…
A: Introduction: The term journal refers to a 'book' or 'diary,' and entry implies writing anything…
Q: Calculate the purchase price of the bond using A-2 and A-4 Tables, a financial calculator or Excel…
A: Given in the question: Bond Face Value = $1,140,000 Bond Issue Date = January 1, 2023 Bond Maturity…
Q: At December 31, 2025, Cullumber Corporation has the following account balances: Bonds payable, due…
A: Balance sheet is a financial statement that shows a list of final ending balances of assets,…
Q: Windsor, Inc. has issued three different bonds during 2019. Interest is payable annually on each of…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay Interest…
A: Bond :— It is one of the source of capital that pays periodic interest and principal amount at the…
Q: Country Bank has $350,000 of 6% debenture bonds outstanding. The bonds were issued at 106 in 2021…
A: Debenture issued at premium of 106 Total amount = $350000 Interest rate = 6% Maturity = 20 years
Q: Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30,…
A: Face value of bonds: $425,000,000 Issued Bonds: $361,772,495 Effective interest rate: 6% Interest…
Q: , Journal entry worksheet: 1. Record the bond issue. (Jan. 01, 2021) 2. Record the first…
A: Formula: Interest expense = Bond value x Time period x interest rate.
Q: Blue Corporation issued $408,000 of 7% bonds on May 1, 2025. The bonds were dated January 1, 2025,…
A: Bond refers to a fixed-income instrument, used by organizations to raise money. Borrowers issue…
Q: What amount did Cullumber Company pay for Waterway Ltd.'s bonds? (Round answer to O decimal places,…
A: The amount which has been paid by the company for the bonds is the amount which will yield the…
Q: Presented below are two independent situations: a) On December 31, 2021, Legault Corporation had…
A: Bond refers to a debt instrument issued by a company or government entity to raise capital. It…
Q: On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest…
A: The given data in the question can be summarised as follows:The required values can be calculated…
Q: Grocery Corporation received $301,001 for 13.50 percent bonds issued on January 1, 2021, at a market…
A: Introduction If stated interest rate on bonds is higher than the market rate of interest then such…
Q: [The following information applies to the questions displayed below.] Alexi Co. issued $3.30…
A: Under horizontal model, effect of all the transactions is being recognised and analysis on all the…
Q: A company issued $500,000 of bonds for $498,351. Interest is paid semiannually. The bond markets and…
A: if bond is issued at lower value and redeemed at premium it is said to be issued at discounthere in…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: Solution 1: Journal Entries - Hillside Date Particulars Debit Credit 1-Jan-21 Cash…
Q: Prepare entry for bonds issued. BE10.8 (LO 3), AP Bridle Inc. issues $300,000, 10-year, 8% bonds at…
A: Introduction: When bonds are sold at a price lower than its face value then such bonds are issued at…
Q: s convertible into 35 common shares, which are currently trading at $34 per share. Similar bonds…
A: Bonds - Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…
Q: On March 1, 2021, FLAXSEED Inc. issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000…
A: Bonds are a form of debt or loan that is issued by the corporation, on which interest needs to be…
Q: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…
A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…
Q: The Assistant Manager of Ridley Corporation is seeking your advice as the accountant, in dealing…
A: Answer:- 1 Accounting treatment for increase in warranty expenses:- Date Particulars Debit…
Step by step
Solved in 2 steps with 1 images
- The Gonzalez Group issued $830,000 of 9% bonds on June 30, 2024, for $912,141. • The bonds were dated on June 30 and mature on June 30, 2044 (20 years). • The market yield for bonds of similar risk and maturity is 8%. • Interest is paid semiannually on December 31 and June 30. Required: 1. to 3. Prepare the journal entries to record their issuance by The Gonzalez Group on June 30, 2024, interest on December 31, 2024 and interest on June 30, 2025 (at the effective rate). Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. View transaction list Journal entry worksheet 1 2 3 Record the issuance of the bond on June 30, 2024. Date June 30, 2024 Note: Enter debits before credits. General Journal Debit CreditOn January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Effective Increase in Outstanding Payment Payment Interest Balance Balance 5,802,315 1 332,000 348,139 16,139 5,818,454 2 332,000 349,107 17,107 5,835,561 3 332,000 350,134 18,134…On July 1, 2019, Cyclic Inc issued $1,000,000 in principal of 6% bonds due in July 2024. The bond pays interest quarterly on January 2, April 1, July 1, and October 1. On July 1, 2020, immediately following an interest payment. Epimetheus Bank purchased $5000 in face value of these bonds for $4501. Epimetheus Bank intends to trade this bond as part of its business operations. When Epimetheus Bank purchased the bond, it calculated that the historical market rate was 9%. When Epimetheus Bank received the interest payment on October 1,2020, what were the journal entries? Select all that apply. Cr. Interest revenue $75 Dr. Amortization of discount on trading debt $26 Cr. Interest revenue $101 Dr Cash $75 Dr Cash $101 Cr. Trading debt receivable $26
- Spurrier Corp. has 10-year bonds with a face value of $400,000 and a carrying value of $420,345 as of 12/31/19. On June 30, 2020, they pay their bondholders $12,000 and recognize $10,509 in interest expense. Please provide the June 30, 2019 carrying value of the bonds after the interest payment.[The following information applies to the questions displayed below.] Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,456,448. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table below to calculate the bond interest expense. 3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life. 4. Prepare the first two years of a straight-line amortization table. 5. Prepare the journal entries to record the first two interest payments. Complete this question by entering your answers in the tabs below. Req 1 Req 2A to 2C Req 3 Req 4 Req 5 Prepare the…On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,095,749 1 228,000 243,830 15,830 6,111,579 2 228,000 244,463 16,463 6,128,042 3 228,000 245,122 17,122 6,145,164 4 228,000 245,807 17,807 6,162,971 5 228,000 246,519 18,519 6,181,490 6 228,000 247,260 19,260 6,200,750 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 228,000 295,564 67,564 7,456,656 39 228,000 298,266 70,266 7,526,922 40 228,000 301,078 73,078 7,600,000 Required: What is the face amount of the bonds? What is the initial selling price of the bonds? What is the term to maturity in years? Interest is determined by what approach? What is the stated annual interest rate? What is the effective annual interest rate? What is the total cash interest paid over the term to maturity? What is the total effective interest…
- Crane Company issued $1,730,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record the issuance of the bonds if they are issued at (1) 100, (2) 97, and (3) 105. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Account Titles and Explanation (1) (2) (3) Debit Credit24. Subject : - Finance Please answer all parts.On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,627,273 1 320,000 331,364 11,364 6,638,637 2 320,000 331,932 11,932 6,650,569 3 320,000 332,528 12,528 6,663,097 4 320,000 333,155 13,155 6,676,252 5 320,000 333,813 13,813 6,690,065 6 320,000 334,503 14,503 6,704,568 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 320,000 389,107 69,107 7,851,247 39 320,000 392,562 72,562 7,923,809 40 320,000 396,191 76,191 8,000,000 Required: What is the face amount of the bonds? What is the initial selling price of the bonds? What is the term to maturity in years? Interest is determined by what approach? What is the stated annual interest rate? What is the effective annual interest rate? What is the total cash interest paid over the term to maturity?…
- On January 1, 2021, ABC Inc issued for P939,000 one thousand units of its 9%, P1,000 bonds. The bonds were issued to yield 10%. The bonds are dated January 1, 2021, and mature on December 31, 2031. ABC uses the effective interest method of amortizing bond discount. How much should ABC report as unamortized bond discount in its December 31, 2021 statement of financial position?Oriole Company issued $510,000 of bonds on January 1, 2020. (a) Prepare the journal entry to record the redemption of the bonds at maturity, assuming the bonds were issued at 100. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation eTextbook and Media List of Accounts Save for Later I Debit 510000 Credit 510000 Attempts: 0 of 1 used (b) The parts of this question must be completed in order. This part will be available when you complete the part above. Submit AnswerHi there, Can you help with attached questions, thanks kindly.