What amount of interest expense will be recorded in the December 31, 2021, annual income statement?
Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…
A: Cash(600000*102/100) Dr $612000 Bond payable Cr $600000 Premium on issue Cr.…
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A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…
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A: BOND Bond is a Financial Security which is Generally Issued by the Corporations, Government &…
Q: On January 1, 2021, Lyle’s Limeade issues 4%, 10-year bonds with a face amount of $90,000 for…
A:
Q: On January 1, 2024, Reyes Recreational Products issued $150,000, 9%, four-year bonds. Interest is…
A: The objective of the question is to prepare an amortization schedule using the effective interest…
Q: On January 1, 2019, Drennen Inc. issued $5 million face amount of 10-year, 14% stated rate bonds…
A: Given: Face value= $5,000,000 i (Stated interest rate) = 14% n (Time period)= 10 x 2 = 20 Market…
Q: Hillside issues $3,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: Solution: Premium on issue of bond is computed as bond issue price less face value of bonds…
Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…
A: Date Account Titles and Explanation Debit Credit Jan. 1, 2020 Cash $311,500…
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A: Interest expense = Issue price of bond × Market interest rate Cash paid = face value×stated interest…
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A: When bonds are issued at premium the premium on bonds payable is amortized over the life of the…
Q: On June 1, 2024, Ivanhoe, Inc. issued $6,880,000, 6% bonds for $6,743,260, which includes accrued…
A: Answer:- Journal entry:- Journal entry is very much important for the business entities to record…
Q: Sheridan Company issued $279,000, 9%, 15-year bonds on December 31, 2021, for $267,840. Interest is…
A: In the given question we need to prepare the journal entries for following: (a)The issuance of the…
Q: On January 1, 2024, Reyes Recreational Products issued $125,000, 10%, four-year bonds. Interest is…
A: As per the Honor code of Bartleby we are bound to give the answer of first three sub part only,…
Q: On October 1, 2021, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were…
A: Interest accrued on dec 31, 2021 = face value x rate of interest x no. of months/12 = $864000 x 8% x…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: Disclaimer: "Since you have asked multiple questions, we will solve the first three questions for…
Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid…
A:
Q: A Company issues four-year bonds with a $114,000 par value on January 1, 2021, at a price of…
A: Interest expense = 114000 x 5% x 6/12 = 2850 bond amortisation = (114000-109870)/8 = 516.25
Q: On January 1,2025 Waterway Corporation issued $390,000 of 9%% bonds, due in years. The bond issued…
A: Bonds are often utilized by both public and private sectors to generate capital for a variety of…
Q: PPetzelmaniá, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1,…
A: The bonds are issued at par when market rate is similar to coupon rate of bonds.
Q: On January 1, 2021, a company issues $720,000 of 8% bonds, due in twelve years, with interest…
A: Amortization schedule Formula sheet of the above schedule
Q: On January 1, 2019, Castle Services issued $177,000 of six-year, 12% bonds when the market interest…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable. The…
Q: Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2019, that pay interest semiannually…
A: Since there are multiple sub parts, the calculation will be given for first three sub parts. To get…
Q: The Bridgeport Company issued $340,000 of 8% 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: On January 1, 2022, Sunland Company issued $420,000, 12%, 10-year bonds at face value. Interest is…
A: The bonds are the financial instruments that are issued to raise money from the market or investors.…
Q: January 1, 2020, Cullumber Enterprises issued 9%, 20-year bonds with a face amount of $5,350,000 at…
A: bonds are considered as a debt instrument that is issued by the company in order to raise the money…
Q: Hillside issues $2,300,000 of 8%, 15-year bonds dated January 1, 2021, that pay interest…
A: Hillside - Bond Issuance and Amortization1. Journal Entry to Record Bonds' Issuance (January 1,…
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A: Financial instruments issued by a corporation to raise long-term capital are known as bonds. In the…
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A: Bonds are the instrument by which company raises the money for a fixed interest payment as finance…
Q: Pretzelmania, Incorporated, issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on…
A: Bonds Payable is documentary evidence given by the payer to the payee This act as a promissory note…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…
A: Please note: Since you have posted a question with multiple sub-part, we will solve the first three…
Q: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…
A: Face value of bond = $ 1,900,000 Issue price of bond = $ 1,641,812…
Q: On January 1, 2019, Booth Sales issues $10,000 in bonds for $10,900. These are 5-year bonds with a…
A: Semiannual interest payment = Face value of bonds * Annual stated rate * 6/12 Semiannual premium…
Q: On January 1, 2020, Cullumber Company issued $400,000, 10%, 10-year bonds at face value. Interest is…
A: Bonds- These are the debts of a company on which interest is payable after a fixed interval i.e.…
Q: On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1,000,000 and an annual…
A: Bonds issued at discount: Bonds are said to be issued at discount if the issue price is less than…
Q: Flamingo Inc. issued $2,000,000, 5%, 5-year bonds on January 1, 2019, at 104. Interest is payable…
A: Bonds: Bonds are the long-term promissory notes that are issued by a company while borrowing money…
Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…
A: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…
Q: Hillside issues $1,700,000 of 8%, 15-year bonds dated January 1, 2021, that pay interest…
A: Bonds payable arise when a company issues bonds to investors to borrow money to meet any business…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: DateGeneral JournalDebitCredit January 01Cash$3,456,448Discount on Bonds Payable$543,552…
Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…
A: Definition: Bonds: Bonds are a kind of interest-bearing notes payable, usually issued by…
Q: On January 1, 2018, Lane Unlimited issues a 9%, 10- year bonds payable with a face value of…
A: Total premium on bonds = Issue value - Face value = $240,000 x 105/100 - $240,000 = $12,000
Q: Patricia Johnson Company issued $420,00
A: Proceeds from issue of bonds = Face value of bonds x issue price /100= $420,000*102/100= $428,400
Q: On January 1, 2025, Martinez Company issued $1,800,000 face value, 7%, 10-year bonds at $1,932,482.…
A: Bond is the amount that has been borrowed by the company on which a specified percentage of interest…
Q: On January 1, 2021, a company issues 3-year bonds with a face value of $160,000 and a stated…
A: Effective interest rate = 5%Therefore, interest expense to be @ market rate = 5% on the Market value…
Q: At January 1, 2020, Konerko Corp. issued $40,000,000 of 6%, 12-year bonds that paid interest…
A: Bonds: It is also known as fixed-income security, is a debt instrument created for the purpose of…
Q: Pharoah Electric sold $5,400,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated…
A: The bonds are issued to raise the money from the market or investors. The bonds are reported as the…
Q: On January 1, 2025, Concord Corporation issued $500,000 of 7% bonds, due in 10 years. The bonds were…
A: The bonds are issued at a premium when the interest earnings on bonds are more than the interest…
On January 1, 2021, Lyle's Limeade issues 3%, 20-year bonds with a face amount of $78,000 for $67,331, priced to yield 4%. Interest is paid semiannually.
What amount of interest expense will be recorded in the December 31, 2021, annual income statement? (Do not round your intermediate calculations. Round your final answer to nearest whole dollar amount.)Explain
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- Your answer is partially correct. On January 1, 2020, Oriole Enterprises issued 8%, 20-year bonds with a face amount of $5,350,000 at 102. Interest is payable annually on January 1. Prepare the entries to record the issuance of the bonds and the first annual interest accrual and amortization assuming that the company uses straight-line amortization. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Jan. 1 Dec. 31 Account Titles and Explanation Cash Bonds Payable Premium on Bonds Payable Interest Expense Premium on Bonds Payable Interest Payable Debit 5457000 385200 42800 Credit 5350000 107000 428000The following section is taken from Bramble Corp.’s balance sheet at December 31, 2021. Current Liabilities Interest Payable $ 89,500 Long-term Liabilities Bonds payable, 5%, due January 1, 2024 1,790,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date. a) Journalize the payment of the bond interest on January 1, 2022. b) Assume that on January 1, 2022, after paying interest, Bramble calls bonds having a face value of $602,000. The call price is 105. Record the redemption of the bonds. c) Prepare the entry to record the accrual of interest on December 31, 2022.On January 1, 2021, Lizzy’s Lemonade issues 5%, 20-year bonds with a face amount of $100,000 for $88,443, priced to yield 6%. Interest is paid semiannually. What amount of interest expense will be recorded on June 30, 2021, the first interest payment date?
- On August 1, 2027, Concord Corporation issued $500,400, 9%, 10-year bonds at face value. Interest is payable annually on August 1. Concord's year-end is December 31. Prepare a tabular summary to record the following events. (a) The issuance of the bonds. (b) (c) The accrual of interest on December 31, 2027. The payment of interest on August 1, 2028. Include margin explanations for the changes in revenues and expenses. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.) (a) Aug. 1, 2027 $ (b) Dec. 31, 2027 (c) Aug. 1, 2028 Assets Cash $ Bonds Payable Liabilities + $ Interest Payable + $ Paid in Capital Common Stock $ Revenue Stockholders' Equity $ Expense Retained Earnings $ Dividend Bonds payable Discount on bonds Interest expense Premium on bondsThe Pearl Company issued $240,000 of 10% bonds on January 1, 2025. The bonds are due January 1, 2030, with interest payable each July 1 and January 1. The bonds are issued at face value. Prepare Pearl's journal entries for (a) the January issuance, (b) the July 1 interest payment, and (c) the December 31 adjusting entry. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.) No. (a) (b) (c) Date Account Titles and Explanation Debit CredAn accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
- On January 1, 2022, Ivanhoe Company issued $425,000, 12%, 10-year bonds at face value. Interest is payable annually on January 1. (a) Your answer is partially correct. Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1, Cash 51000 2022 Bonds Payable 51000On January 1, 2018, Educators Credit Union issued 7%, 20-year bonds payable with a face value of $100,000. The bonds pay interest on June 30 and December 31. How do I Journalize the payment of interest and amortization on June 30, 2018.?On January 1, 2022, Johnson Company issues $100,000 face amount bonds. Thesebonds pay 7% APR interest. Interest is paid semiannually on June 30th andDecember 31st. The bonds mature in 10 years.On January 1, 2022, the market rate for similar bonds was 8% and thereforethe bonds were sold with a $6,795 discount.Johnson Company uses the effective interest method to calculate interest expense. REQUIRED: Prepare the following entries for Johnson Company.1-1 Prepare the January 1, 2022 journal entry record the bond issue.1-2 Prepare the June 30, 2022 journal entry to record the interest payment.1-3 Prepare the June 30, 2023 journal entry to record the interest payment.
- Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31. Required: 1. & 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate computations and final answers to the nearest whole dollar amount.)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. For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. Check (3) $4,143,552 3. Determine the total bond interest expense to be recognized over the bonds' life. (4) 12/31/2022 carrying value, $3,528,920 4. Prepare the first two years of a straight-line amortization table like Exhibit 14.7. 5. Prepare the journal entries to record the first two interest payments.Temptation Vacations issues $60 million in bonds on January 1, 2021, that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:Required:1. Were the bonds issued at face amount, a discount, or a premium?2. What is the original issue price of the bonds?3. What is the face amount of the bonds?4. What is the stated annual interest rate?5. What is the market annual interest rate?6. What is the total cash paid for interest assuming the bonds mature in 20 years?