Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a $750,000, 7%, 10-year bond that pays semiannual interest of $26,250 ($750,000 × 7% × ½ year), receiving cash of $750,000. (a)  Journalize the entry to record the issuance of the bonds.                 (b)  Journalize the entry to record the first interest payment on June 30.                 (c)  Journalize the entry to record the payment of the principal on the maturity date.

Q: On the first day of the fiscal year, a company issues a $2,000,000, 10%, 9-year bond that pays…

A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…

Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…

A: Excess of issue price over the face value of the bond is Premium on Bonds Payable.   In the given…

Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…

A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300

Q: On the first day of the fiscal year, a company issues a $1,400,000, 10%, 7-year bond that pays…

A: Bond Premium is amortized can be amortized through Straight line method and Effective interest rate…

Q: On the first day of the fiscal year, a company issues a $2,750,000, 8%, 5-year bond that pays…

A: Bonds are the form of loan or debt that is being issued by the company and on which regular interest…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,800,000, 6%,…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed by…

Q: On September 1, Year 1, Parsons Company purchased $84, 000 of 10-year, 7% government bonds at 100…

A: The objective of the question is to journalize the purchase, receipt of interest, and sale of…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $950,000, 8%, 10-year…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,500,000,…

A: Bonds: To raise the funds and finance the operations of the company, money is borrowed from the…

Q: Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on…

A: Journal entries refers to the official book of a company which is used to record the day to day…

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

A: Bonds are a form of loan or debt issued by the company, on which it has to make regular interest…

Q: (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an…

A: Bonds/Debentures are long term loans which a company borrow to finance its business. Company has to…

Q: Journalize the first interest payment and the amortization of the related bond discount. Round to…

A: A bond is said to be issued at a discount when the buyer pays an amount which is less than the par…

Q: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: On the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays…

A:

Q: On the first day of the fiscal year, a company issues a $2,050,000, 9%, five-year bond that pays…

A: Bond: It is  long-term financial instrument issued by a company. Interest is paid to bond holders…

Q: On the first day of the fiscal year, a company issues a $8,900,000, 8%, 5-year bond that pays…

A: Premium on bonds payable:  It occurs when the bonds are issued at a high price than the face value.

Q: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…

A: Journal entries are used to record entries in chronological order for a business.

Q: On the first day of the fiscal year, a company issues a $910,000, 8%, 5-year bond that pays…

A: Bonds are debt instruments issued by government or a company to borrow funds from individual or…

Q: QUESTION 7 On the first day of the fiscal year, a company issues a $960,000, 8%, 5-year bond that…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: On the first day of the fiscal year, a company issues a $5,100,000, 9%, 4-year bond that pays…

A: Bonds issued at discount: A bond said to be issued at discount when its issue price is less than…

Q: On January 1, the first day of the fiscal year, Designer Fabric Co. issues a $400,000, 5%, 10-year…

A: Bond is financial instruments used to raise funds to meet financial obligations of business.Bond can…

Q: On January 1, the first day of the fiscal year, a company issues a $250,000, 10%, 10-year bond that…

A: SOLUTION- BOND-  A Bond is a fixed income instrument  that represent a loan  made by the investor to…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a.$4,200,000, 10%,…

A: Bonds are issued by the companies to get the financial resources for working. It is a cheaper source…

Q: Instructions On January 1, the first day of the fiscal year, a company issues a $2,050,000, 9% ,…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…

A: Bonds: Bonds are financial debt instruments issued by the corporations to raise for the purposes of…

Q: ay of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest…

A: Solution: Semiannual interest amount = $800,000*6%*6/12 = $24,000 Discount amortization = ($800,000…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…

A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue of bond…

Q: On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays…

A: Discount on Bonds Payable = Face value of the bonds - Issue value of the bonds = $1,450,000 -…

Q: On January 1, the first day of the fiscal year, a company issues a $1,800,000, 4% , five-year bond…

A: When the issue price of the bonds is more than the face value of the bonds the bonds are issued at…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,200,000, 9%,…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On January 1, the first day of the fiscal year, a company issues a $550,000, 8%, 10-year bond that…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: On the first day of the fiscal year, a company issues a $8,400,000, 12%, 8-year bond that pays…

A: Premium on bonds Payable = Issue price - Face value of bonds = $8,839,411 - $8,400,000 = $439,411

Q: On the first day of the fiscal year, a company issues a $6,800,000, 8%, 10-year bond that pays…

A: Bonds are the instruments that are being issued for the purpose of raising finance. These are the…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $250,000, 10%, 10-year…

A: A bond is a liability on which a specific percentage of interest has to be paid over the maturity of…

Q: On the first day of the fiscal year, a company issues a $3,900,000, 8%, 7-year bond that pays…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $8,400,000, 6%,…

A: The bonds are the Financial instruments that are issued to raise the money from the market or…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Premium on issue of bonds payable is the excess amount received by the company over the face value…