Yale Corporation issued $36,000 , 8 % ( cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Yale amortizes any bond discount or premiumusing the effective interest amortization method and bond issuance costs are $900. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates.a. January 1, for issuance of bonds.b. June 30, for the first interest payment.• Note: Round your answers to the nearest whole dollar.Datea. Jan. 1Account NameCashDiscount and Debt Issuance CostsBonds PayableTo record bond issuance.b. June 30 Interest ExpenseDiscount on Bonds PayableCashTo record interest payment.VVVV✓VDr.32,7583,24201,47400Cr.0✔0✓36,000 ✓0x30 x1,440

Bond is a fixed interest bearing security which is issued by the company to raise finance for the…

Answered: Yale Corporation issued $36,000 , 8 %…

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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Yale Corporation issued to Zap Corporation $60,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and sold on January 1. Assume that the company uses the effective interest amortization method and bond issuance costs are $1,500. If the bonds were sold to yield 9%, provide journal entries to be made at each of the following dates. a. January 1, for issuance of bonds. b. June 30, for the first interest payment. • Note: Round your answer to the nearest whole dollar. Date a. Jan. 1 Account Name Cash Discount on Bonds Payable Bonds Payable To record bond issuance. b. June 30 Interest Expense Discount on Bonds Payable Cash To record interest payment. > Dr. 54,597 0 0 0 0 0 Cr. 0x 2,374 * 60,000 0x 0x 0x
Keaubie Co. issued $400,000, 6.75% 15-year bonds payable at a price of 100 (face value), on Jan. 1a.Journalize the issuance of the bondsb. Journalize the first annual interest payment and amortization of the discount or premium.c.Journalize the retirement of the bonds at maturity.
Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $6,800,000, 8%, 10-year bond that pays semiannual interest of $272,000 ($6,800,000 x 8% x 2), receiving cash of $5,952,570. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.
Franklin Corporation issues $95,000, 10%, 5-year bonds on January 1 for $99,300. Interest is paid semiannually on January 1 and July 1. If Franklin uses the straight-line method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1 is Oa. $7,600 Ob. $4,320 Oc. $3,800 Od. $4,230 Previous Next 3:22 PM 53 F Sunny 12/14/2021 a 耳件

Issuing bonds at a premium On the first day of the fiscal year, a company issues a $3,900,000, 8%, 7-year bond that pays semiannual interest of $156,000 ($3,900,000 x 8% x 12), receiving cash of $4,340,546. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Premium on Bonds Payable Bonds Payable Feedback Check My Work Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account.
Gia Company had the following bond issue: Date of issue/sale: April 1, 20-A Face value: $200,000 Sale price of bonds: 99 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on September 30 and March 31 Required: Prepare the following general journal entries. a. The issuance of the bonds on April 1, 20-A. b. The interest payment and premium amortization for first six months. c. The redemption of $50,000 worth of bonds on April 1, 20-E, at 102. If an amount box does not require an entry, leave it blank. Page: 1 DATE DESCRIPTION POST.REF. DEBIT CREDIT 1 a. Apr. 1 1 2 2 3 3 4 4 5 b. Sept. 30 - Select - - Select - 5 6 - Select - - Select - 6 7 - Select - - Select - 7 8 8 9 c. Apr. 1 - Select - - Select - 9 10 - Select - - Select - 10 11 - Select - - Select - 11 12 - Select - - Select - 12
Subject :- Account
On January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond that pays semiannual interest of $135,000 ($2,250,000 x 12% x ½), receiving cash of $2,379,360. Required: Journalize the first interest payment and the amortization of the related bond premium. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $4,400,000, 10%, 8-year bond that pays semiannual interest of $220,000 ($4,400,000 × 10% × ½), receiving cash of $4,647,147. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. accounts payable/bonds payable/cash/discounts on bonds payable/interest expense/premium on bonds payable/
Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $550,000, 10%, 10-year bond that pays semiannual interest of $27,500 ($550,000 × 10% × ½ year), receiving cash of $550,000. (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. (b) Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. (c) Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank.
Fill in the Blank Question Î A company issues $100,000 of 5%, 10-year bonds dated January 1. The bonds pay interest semiannually on June 30 and December 31 each year. If the bonds are sold at par value, the issuer records the sale with a debit to in the amount of $
Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $8,700,000, 7%, 10-year bond that pays semiannual interest of $304,500 ($8,700,000 × 7% × ½), receiving cash of $10,833,863. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

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