On December 1, 2017, Cone Company issued its 9%, $450,000 face value bonds for $520,000, plus accrued interest. Interest is payable on November 1 and May 1. On December 31, 2019, the book value of the bonds, inclusive of the unamortized premium, was $480,000. On July 1, 2020, Cone reacquired the bonds at 99 plus accrued interest. Cone appropriately uses the straight-line method for the amortization because the results do not materially differ from those of the effective interest method. Requirement: Book value of bonds on December 1, 2017 _______ Book value of bonds on December 31, 2019 _______ Amortization for 25 months _______ Monthly amortization _______ Book value of bonds on December 31, 2019 ________ Amortization for January 1 to July 1, 2020 ________ Book value of bonds on July 1, 2020 ________ Cost of reacquisition ________ Gain on bond redemption

Q: On January 1, 2020, Pronghorn Company purchased 6% bonds, having a maturity value of $550,000 for…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: On July 1, 2023, Riverbed Aggregates Ltd. purchased 6% bonds with a maturity value of $125,000 for…

A: A journal entry is a basic accounting record that is used to chronologically track financial…

Q: On January 1, 2019, X Sports Corporation issued 10% bonds with a face value of $200,000. The bonds…

A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…

Q: On January 1, 2019, TSLA Corporation issued 2,300 of its 10%, $1,000 bonds for $2,386,000. These…

A: Bonds that can be called for extinguishment before maturity are called callable bonds. When bonds…

Q: On January 1, 2025, Hummer Company purchased 5% bonds, having a maturity value of $500,000 for…

A: Introduction:Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds…

Q: On January 1, 2020, Kingbird, Inc. purchased 11% bonds having a maturity value of $541,000 for…

A: The following journal entries are passed to show the investment in bonds.

Q: Stark Ltd sold IDR 6,200,000, 10%, 10-year bonds on January 1, 2019. The bonds were dated January i…

A: No. Date Account Titles and Explanation Debit Credit 1. January 1, 2019 Cash (IDR…

Q: On January 1, 2020, Cheyenne Company purchased 4% bonds, having a maturity value of $420,000 for…

A: Journal entry is the procedure for initially documenting commercial transactions in the books of…

Q: On January​ 1, 2017​, Delaney Corporation issued five​-year, 10​% bonds payable with a face value of…

A: Dear student, we can not solve more than three sub-parts of a question if a question has more than…

Q: On January 1, 2025, Sage Company purchased 12% bonds having a maturity value of $284,000 for…

A: The bonds can be defined as corporate debt units and these units are the tradable assets. the…

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: On January 31, 2020, Courtenay Sports Cars issued 14-year, 7% bonds with a face value of $160,000.…

A: Journal Entry :— It is an act of recording transaction in books of account when transaction…

Q: On March 1, 2021, Brown-Ferring Corporation issued $100.0 million of 15% bonds, dated January 1,…

A: Accrued Interest- In accounting, accrued interest refers to the sum of interest that has been…

Q: On January 1, 2016, Crane Company issued 2000 of its 10%, $1,000 bonds for $2080000. These bonds…

A: The issuer of debt instruments such as callable bonds has the right to pay back the principal value…

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: On January 1, 2025, Bramble Company purchased 11% bonds having a maturity value of $301,000 for…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

Q: On January 1, 2025, Swifty Company purchased 12% bonds having a maturity value of $312,000 for…

A: Investment means an asset purchased in expectation of earning a return on such investment in future…

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, 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: On June 30, 2021, Arlington Company issued $2,100,000 of 10-year, 3% bonds, dated June 30, for…

A: The bonds are the financial instruments that are used to raise money from the market.

Q: Polk Incorporated issued $200,000 of 13% bonds on July 1, 2019, for $206,801.60. The bonds were…

A: The following computations are done for Polk Incorporation.

Q: On January 1, 2021, Concord Corporation issued its 10% bonds in the face amount of $8070000, which…

A: Step 1: Compute the amount of interest expense: Interest expense=$9152978*8%=$732238 Step 2: Compute…

Q: On January 1, 2025, Entity D issued $1,000,000 of 7%, 5-year bonds at 98. The bonds pay interest…

A: Bonds Payable - Bonds Payable is a amount borrowed to be repayable at specific interval. It carries…

Q: On January 1, 2020, Teal Company purchased 9% bonds having a maturity value of $370,000, for…

A: Interest receivable = face value of investment x  interest rate = 370,000 x 9% = $33300

Q: On January 1, 2020, Sage Company purchased  11% bonds, having a maturity value of $ 301,000 for $…

A: The question is based on the concept of Financial Accounting.

Q: Ignoring income taxes, calculate the amount of loss, if any, that the company needs to recognize as…

A: Bonds payable: Bonds payable is a type of instrument whereby an amount is borrowed for a fixed…

Q: Instructions: 1. Prepare the journal entry at the date of the bond purchase. 2. Prepare the first 3…

A: Bond :—  A bond is loan from an investor to a borrower such as a company or government.  It's…

Q: 1. The carrying value of the bonds on December 31, 2020 is $ 2. The fair value of the bonds on…

A: Given in the question: Number of bonds issued 64 Face Value per bond $1,000…

Q: Hasley Company issued $800,000, 11%, 10-year bonds on December 31, 2018, for $730,000. Interest is…

A: Journal entries forms part of basic accounting where the transactions of an organisation are being…

Q: On December 1, 2017, Cone Company issued its 10%, $550,000 face value bonds for $640,000, plus…

A: Bond redemption is the process of repaying the principal amount of a bond to its bondholders upon…

Q: Presented below are two independent situations: a) On December 31, 2021, Legault Corporation had…

A: Bonds is a financial instrument which is used to generate cash it has a period of one year or more…

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.