1.Prepare the journal entry on January 1, 2021, to record interest paid.

Q: 4. Chapter 9 Homework

A: Prepare journal entry to record the issuance of bonds:

Q: Homwork question 5- chapter 9

A: Calculate the amount of interest expense:

Q: On January 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: On June 1, 2020, Bramble Corp. issued $8,320,000, 6% bonds for $8,154,640, which includes accrued…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: On October 1, 2021, Monty Corp. issued $828,000, 7%, 10-year bonds at face value. The bonds were…

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

Q: Sheffield Company issued $648,000 of 10%, 20-year bonds on January 1, 2020, at 104. Interest is…

A: Proceeds from issue of bonds = Face value of bonds x issue price /100 = $648000*104/100 = $673920

Q: On August 31, 2021, BEAST Company issued at 104 plus accrued interest, three thousand 10% bonds with…

A: Hi since you have posted a question with multiple subparts we are solving the 1st 3 subparts for…

Q: On March 1, 2021, FLAXSEED Inc. issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000…

A: If the interest accrued from the previous due date of interest is included in the quoted price, then…

Q: On October 1, 2021, Pronghorn Corp. issued $864,000, 8%, 10-year bonds at face value. The bonds were…

A: Bonds are issued at a face value of $864,000.

Q: Deleau Equipment Ltd. issued 11%, five-year bonds with a face value of $80,240,000 on October 1,…

A: Bonds payable is the liability for an entity. These are securities that are issued for the purpose…

Q: On October 1, 2021, Cullumber Company issued $520,000, 6%, 10-year bonds at face value. The bonds…

A: Bonds are issued by the company to increase the funds of the company. When a company issues bonds,…

Q: On January 1, 2019 Sandhill Corporation issued $550,000, 7%, 5-year bonds at face value. Interest is…

A: Introduction: Journal entries serve as the primary building blocks for answering these and other…

Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…

A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…

Q: On January 1, 2020, Morgan Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at…

A: Bond's issued at more than face value are said to be bonds issued at premium.

Q: Simko Company issued $670,000, 10-year, 4 percent bonds on January 1, 2021. The bonds were issued…

A: When, the debentures are issued at less than par value, it is has been issued at discount. The…

Q: On April 1, 2021, ORANGE Inc. issued at 97 including accrued interest, 2,000 of its 10%,₱1,000…

A: Accrued interest on bonds = face value of bonds x rate of interest x no. of months/12 =…

Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…

A: Answer: Date Particulars Debit ($) Credit ($) January 1, 2021 Interest on Bonds A/c 21,805…

Q: On January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value). The…

A: At the time of issue of the bond, interest is not recorded. It is recorded when the amount becomes…

Q: Ivanhoe Company issued $456,000 of 10%, 20-year bonds on January 1, 2020, at 101. Interest is…

A: When a bond is issued at a premium, that means that the bond is sold for an amount greater than the…

Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: Nasreen Company issues $2,000,000, 10-year, 8% bonds at 97, with interest payable each January 1.…

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

Q: On January 1, 2022, Carla Vista Company issued $ 500,000, 12%, 10-year bonds at face value. Interest…

A: Interest expense = Face value of bonds x rate of interest x no. of months/12 = $500,000 x 12% x…

Q: On January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value).…

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

Q: Pharoah Company issues $3,000,000, 10-year, 7% bonds at 93, with interest payable each January 1.…

A: Definition:   Bonds: Bonds are a kind of interest bearing notes payable, usually issued by…

Q: January 1, 2020, Cullumber Enterprises issued 9%, 20-year bonds with a face amount of $5,350,000 at…

A: bonds are considered as a debt instrument that is issued by the company in order to raise the money…

Q: Deleau Equipment Ltd. issued 11%, five-year bonds with a face value of $80,240,000 on October 1,…

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

Q: Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January I, 2022, at face value.…

A: A journal entry is being used to record a commercial transaction in the accounting records of a…

Q: Blossom Company issues $ 1,000,000, 10-year, 10% bonds at 95, with interest payable each January 1.…

A: Bonds are the issued for collecting resources and it is considered as a cheaper source of finance…

Q: crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…

A: Cash received = 2,100 bonds x $1,000 per bond x 100% = $2,100,000

Q: Headland Inc. issued $150,000, 5-year bond on January 1, 2021 paying 5% interest on a semi-annual…

A: Bonds are the highly secured debt securities which are redeemable after a certain span of time.

Q: Sheffield Company issued $648,000 of 10%, 20-year bonds on January 1, 2020, at 104. Interest is…

A: Introduction: On January 1, 2020, Sheffield Company issued $648,000 of 10 percent, 20-year bonds at…

Q: On January 1, 2021, Solo Inc. issued 1,000 of its 8%, $1,000 bonds at 98. Interest is payable…

A: In this question we have been asked to calculate the carrying value of the bond, for which we have…

Q: part 1: Nasreen Company issues $2 million, 10-year, 8% bonds at 97, with interest payable each…

A: The bonds are sold in two forms: 1. At a discount 2. At premium

Q: On September 1, 2021, Oriole Corporation issued $610,000 of 10-year, 3% bonds at 96. Interest is…

A: The market rate of interest is higher than the coupon rate if the issue price is less than the face…

Q: On March 1, 2021, FLAXSEED Inc. issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000…

A: Bonds are a form of debt or loan that is issued by the corporation, on which interest needs to be…

Q: n July 31, 2021, Sheridan Inc. issued $430,000 of 5-year, 4% bonds at 104. Interest is payable…

A: To begin, preserving detailed records of your transactions helps to organize the data in your…

Q: On March 1, 2021, Patriot Company issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000…

A: Formula: Cash received on issue of bonds = Face value of bond x Issue rate of bonds

Q: On October 1, 2019, Ball Company issued 9% bonds dated October 1, 2019, with a face amount of…

A: Journal is the book of original entry in which all the transactions relating to the business are…

Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…

A: The bonds are issued at face value therefore there is no requirement to adjust interest expense with…

Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…

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

Q: Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January…

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

Q: On January 1, 2020, Sheridan Company issued $351,500, 6%, 5-year bonds at face value. Interest is…

A: Interest expense = Par value of bonds x Interest rate = $351,500 x 6% = $21,090

Q: On October 1, 2021, Cullumber Company issued $520,000, 6%, 10-year bonds at face value. The bonds…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: Sunland Electric sold $5,615,000, 10%, 10-year bonds on January 1, 2020. The bonds were dated…

A: Cash received on issue of bonds = $5,615,000*96/100 = $5,390,400 Discount on Bonds Payable = Face…

Q: On October 1, 2021, ABC Corporation issued, at 99 excluding accrued interest, 3,000 of its 8% 1,000…

A: Bond: It is a form of long-term debt issued by company . It is a contract to pay the bondholders…

Q: Oriole SpA issued €400,000, 7%, 20-year bonds on January 1, 2020, for €360,727. This price resulted…

A: Bonds are a form of liability for the business, on which regular interest payments needs to be made…

Q: The Sleepy Corporation issued $1,000,000 of ten year bonds on January 1, 2019. The interest rate on…

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

Q: January 1, 2021, Sunrise Corporation issued $4,000,000, 8%, 5-year bonds dated January 1, 2021, at…

A: Bonds are debt instruments raised to get fund with fixed rate of interest.  Here interest rate is 8℅…

Q: On January 1, 2019, Black Corporation issued P6, 000,000 of 7% bonds, due in 10 years. The bonds…

A: A bond is basically an interest-bearing loan instrument that is issued by the companies in order to…

Q: Blossom Company issues $1,000,000, 10-year, 10% bonds at 95, with interest payable each January 1.…

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