The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period:   (a) Were the bonds issued at a discount or at a premium? (b) What is the unamortized amount of the discount or premium account at the beginning of the period? (c) What account was debited to amortize the discount or premium?

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: On June 30, Jamison Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: Payment of interest on December 31 = Face value of bonds x rate of interest x no. of months /12…

Q: Trog Industries pays and records the semiannual interest on its $520,000, 10-year, 6% bonds…

A: Here in this question, we are required to make journal entry for interest payment and discount…

Q: According to the theory, premium bonds, discount bonds, and face value bonds at the expiry date will…

A: Bonds refer to borrowing security issued by the company to raise funds from the market by making an…

Q: Bonds Payable has a balance of $952,000 and Premium on Bonds Payable has a balance of $10,472. If…

A: Redemption value of Bonds = $952,000 * 102% Redemption value of Bonds = $971,040   Premium on Bonds…

Q: After accruing interest at year end, the company's December 31, Year 1 balance sheet should reflect…

A:

Q: Demopoulos Company acquired $145,800 of Marimar Co., 8% bonds on May 1 at their face amount.…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $271,860. What amount of…

A: When a bond is redeemed, the difference between carrying value and redemption value.

Q: A $525,000 bond issue on which there is an unamortized discount of $43,000 is redeemed for $470,000.…

A: Bond:A bond is simply referred as a debt security that represents a loan made by an investor to a…

Q: Devin Company computes the following bond interest amortization table for bonds issued on January 1,…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: b. Indicate whether the amortization schedule is based on the straight-line method or the…

A: A bond represents a promise by a borrower to pay a lender their principal and usually interest on a…

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

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

Q: Present entries to record the selected transactions described below: Required: a. Issued $2,750,000…

A: The journal entries are as follows. (a) Cash A/C dr.                $2667,500 Discount A/C dr.…

Q: Bonds Payable has a balance of $802,000 and Discount on Bonds Payable has a balance of $9,624. If…

A: The objective of this question is to calculate the gain or loss on redemption of bonds. The company…

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: The following is the partial bond discount amortization schedule for Monty Corp. Monty uses the…

A: As per nominal account rule we should debit all expenses and losses and credit all incomes and…

Q: A $296,000 bond was redeemed at 103 when the carrying amount of the bond was $307,544. The entry to…

A: Solution: Redemption amount of bond = $296,000*103% = $304,880 Carrying amount of bond = $307,544

Q: Which of the following is true of the Premium on Bonds Payable account? (The bonds are due in ten…

A: Option 4 is the appropriate choice.

Q: a $300,000 bond was redeemed at 104 when the carrying value of the bond was $316,000. The entry to…

A: Payment made on redemption = Bond face value x rate of redemption = $300,000 x 104% = $312,000…

Q: Determine whether the following bonds payable will be issued at par value, at a premium, or at a…

A: If the stated interest rate is equal to market interest rate, the bond would be priced at Par.  If…

Q: Pearl Inc. has issued three types of debt on January 1, 2020, the start of the company's fiscal…

A: Bonds are fixed-income securities that firms and governments issue to raise money. They can be…

Q: A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $269,100. The entry to…

A: Solution:- Introduction:- The following data given as follows:- Bond = $276,000 redeemed at = 98…

Q: The Square Foot Grill, Incorporated issued $240,000 of 10-year, 7 percent bonds on January 1, Year…

A: When the bonds are issued the book value may be different from the face value. If the bonds are…

Q: The balance in the Bonds Payable account is a credit of $67,000. The balance in the Discount on…

A: Bond's carrying amount = Bonds payable - Discount on bond payables…

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: Long-term debt can be reported either (a) as a single amount, net of any discount or increased by…

A: Definition:   Long-term liabilities: The debts obligations owed by a company to creditors and…

Q: 1a) What was the issue price on January 1 of this year? 1b) What amount of interest expense should…

A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…

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: The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period:…

A: (a)The bonds were issued at premium.The bonds were issued at high price ($2,125,000) than the face…

Q: Bonds Payable has a balance of $1,005,000 and Discount on Bonds Payable has a balance of $10,050. If…

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

Q: A $278,000 bond was redeemed at 98 when the carrying amount of the bond was $273,830. The entry to…

A: Given data:  Value of Bond: $278,000 Carrying amount of bond : $273,830 Redeemed at 98   If the…

Q: On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest…

A: The given data in the question can be summarised as follows:The required values can be calculated…

Q: The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

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…