Answered: A $1,500,000 bond issue on which there…

A $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for $1,455,000. Journalize the redemption of the bonds.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: On January 1, Year 1, Pierce Corporation issued $25,000 in 8%, 5-year bonds payable at 102. Interest…

A: Assets, liabilities and stockholders equity are recorded in the Balance Sheet. Income and expenses…

Q: A $294,000 bond was redeemed at 104 when the carrying value of the bond was $349,000. The entry to…

A: Par value of the bond = $294,000 Redemption value = $294,000 * 104% = $305.760 Carrying value of the…

Q: A $540,000 bond issue on which there is an unamortized discount of $45,000 is redeemed for $446,000.…

A: When bonds were issued on discount, company receives the face value less discount amount

Q: Record the issue of bonds with a par value of $270,000.

A: The journal entries are prepared to keep the record of daily transactions of the business.

Q: 2019 RENTALS S $490,000 bond issue on which there is an unamortized discount of $33,000 is redeemed…

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

Q: A $505,000 bond issue on which there is an unamoritizer discount of $37,000 is redeemed for…

A: As we know that the term redemption has various utilizations in the money and business world,…

Q: S14-6 Journalizing bond transactions Power Company issued a $1,000,000, 5%, 5-vear bond payable at…

A: Bonds are a form of debt or loan taken by the company, on which company has to make 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: A $515,000 bond issue on which there is an unamortized discount of $36,000 is redeemed for $463,000.…

A: The bonds are issued at discount when market rate is lower than the coupon rate of bonds.

Q: On June 30, Power Company issues 5%, five-year bonds payable with at face value of $60,000. The…

A: Journal entry : It is prepared to record the financial and non financial transaction of the business…

Q: On Janua

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: A company issues bonds with a face value of $5,000,000 and receives cash proceeds of $5,500,000 from…

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

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: A $500,000 bond issue on which there is an unamortized discount of $50,000 is redeemed for $475,000.…

A: Given Information: Issue of bonds = $500,000 Unamortized discount = $50,000 Redeemed for = $475,000

Q: A $500,000 bond issue on which there is an unamortized discount of $34,000 is redeemed for $473,000.…

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

Q: Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the…

A: The objective of the question is to prepare the company's journal entries for the issuance of bonds…

Q: Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

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

Q: A $1,600,000 bond issue on which there is an unamortized premium of $70,500 is redeemed for…

A: The company shares, bonds, debentures, etc., will be issued to meet the capital requirement of the…

Q: A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to…

A: Proceeds from redemption = $294,000 * 98/100 = $288,120

Q: A $288,000 bond was redeemed at 98 when the carrying amount of the bond was $280,800. The entry to…

A: Lets understand the basics. For calculating gain/loss on redemption of carrying value of bond, we…

Q: A $530,000 bond issue on which there is an unamortized discount of $42,000 is redeemed for $476,000.…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: Redemption of Bonds Payable A $950,000 bond issue on which there is an unamortized premium of…

A: Bonds payable $950,000 Unamortized premium $78,000 Cash paid $802,000

Q: A$1,000,000 bond is issued on 7/1. The transaction is recorded on 7/1 by the UCF Bicycle Vending…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

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: A $530,000 bond issue on which there is an unamortized discount of $37,000 is redeemed for $476,000.…

A: Bonds are the securities that are issued by the business entities or government to raise funds from…

Q: On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays…

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

Q: A $530,000 bond issue on which there is an unamortized discount of $37,000 is redeemed for $462,000.…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: A $485,000 bond issue on which there is an unamortized discount of $35,000 is redeemed for $472,000.…

A: Journal entry:A journal entry is simply a record of a transaction relating to business in your…

Q: Journalize the redemption of the bonds

A: Redemption of bond means discharging the liability of bond by paying off it in cash or cash…

Q: A $515,000 bond issue on which there is an unamortized discount of $41,000 is redeemed for $473,000.…

A: Given that: Bond value = $515000 Unamortised discount = $41000 Redemption value = $473000

Q: Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $40,000,000 of…

A: BOND Bond is a Financial Securities which is Generally Issued by the Corporation's, Government…

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: A $940,000 bond issue on which there is an unamortized premium of $68,000 is redeemed for $761,000.…

A: Loss on redemption of bonds = Face value of bonds + Unamortized Premium on Bonds Payable - Cash paid…

Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…

A: Bonds are issued by the company to meet the financial requirements of the company without losing its…

Q: Redemption of bonds payable A $2,000,000 bond issue on which there is an unamortized premium of…

A: Bond redemption is the process by which a bond issuer repays the principal amount of a bond to the…

Question

A $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for $1,455,000. Journalize the redemption of the bonds.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

A $515,000 bond issue on which there is an unamortized discount of $36,000 is redeemed for $463,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.
Redemption of Bonds Payable A $880,000 bond issue on which there is an unamortized premium of $66,000 is redeemed for $805,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.
Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,800,000, 11%, 5-year bond that pays semiannual interest of $484,00 ($8,800,000 x 11% x %2), receiving cash of $8,476,157. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.
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.
A $650,000 bond issue on which there is an unamortized discount of $45,00, is redeemed for $600,000. What journal entry would you make to record the redemption of the bond?
A $920,000 bond issue on which there is an unamortized premium of $65,000 is redeemed for $821,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.
Assume the bonds in were issued for $644,636 and the effective-interest rate is 6%, prepare the company's journal entries
Concord Hills Ltd. issued five-year bonds with a face value of $180,000 on January 1. The bonds have a coupon interest rate of 5% and interest is paid semi-annually on June 30 and December 31. The market interest rate was 3% when the bonds were issued at a price of 109. Determine the balance in the Bonds Payable account immediately following the first interest payment. Balance in bonds payable account
An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.
A $545,000 bond issue on which there is an unamortized discount of $37,000 is redeemed for $472,000. Journalize the redemption of the bonds.If an amount box does not require an entry, leave it blank.
A $1,000,000 bond issue on which there is an unamortized premium of $71,600 is redeemed for $1,051,500. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331…
B4.