12. On January 1, 2017, Milky-way Company issues $2million, 10 year, 7% bonds at 98, with interest payable every June 30, and December 31. The straight line method is used to amortize any applicable bond premium or discount. Required: A. Prepare the journal entry to record the sale of the bonds on January 1, 2017. B. Prepare the journal entry to record interest expense and bond discount amortization during 2017, assuming no previous accrual of interest.

Q: ry 1, 2016, Truffle Corp. issued 9% bonds in the face amount of P 5,000,000, which maature on…

A: Solution: Under interest method of bond amortization, Discount amortized is difference between cash…

Q: On January 1, 2015, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000,a…

A: Amortization Schedule: An amortization schedule is a table that shows the details of each loan…

Q: On January 1, 2016, Crammer Inc. issues five-year bonds with a total face amount of $1,000,000 and a…

A: Bonds payable is a form of liability being incurred by the business, on which regular interest…

Q: On January 1, 2016, Wolf Company issued 10% bonds in the face amount of P5,000,000, which mature on…

A: Interest payment on December 31, 2016 = Face value of bonds x rate of interest x years = P5,000,000…

Q: On January 1, 2015, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000,…

A: 1.

Q: 1.) On January 1, 2007, Red Velvet Co. issued its 10% bonds in the face amount of P3,000,000, which…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: On July 1, 2014, Oladipo Corporation issued 11% bonds in the face amount of P2,000,000 that mature…

A: Carrying  value  is present value of future  cash flows discount @5%(10/2)

Q: Angelas Company issued a $500,000, 10 percent, 10-year bond on January 1, 2015, for 113.6 when the…

A: Bond Premium is amount received in excess of par value at issuance of bonds whereas Bond Discount is…

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: $939,000 to yield 10%. Alquds uses the effective-interest method of amortizing bond discount.…

A: Un amortized bond discount ,7/1/ Year 1   Bond discount amortization ,7/1/ Year 1 to  6/30/Year3:…

Q: On January 1, 2017, Ashlock Chemical issued RM4,000,000, 10%, 10-year bonds at RM4,543,627. This…

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

Q: On 2/1/2012, the Union Company issued an amount of 1,500,000 dinars in the form of bonds with a…

A: Callable bonds are those bonds which can be called by the company, at any time prior to maturity,…

Q: On January 1 2017, Aumont Company sold 12% bonds having a maturity value of $500,000 for…

A: Prepare the journal entry to record the interest payment and the amortization for 2019.

Q: On November 1, 2018, Sigma Inc. invests in $1,000,000 of 5%, 10-year bondsissued by Microsoft…

A: Correct Option is “a”: Interest Revenue. After Investing in November 2018, the interest revenue will…

Q: Required Scenario 1: 1.  Prepare the journal entry assuming the bonds are issued at 103.5 on May 1,…

A: Journal entry:- Journal entry is an entry that we make for our business transactions to know the…

Q: On December 31, 2017, Evermore's Inc 's long-term obligation portion includes USD3,000,000 in 5-year…

A: Valuation of Bond

Q: On May 1, 2016, Bench Co. issued 11% bonds in the face amount of P 1,000,000 that mature on May 1,…

A: Solution: Face amount of bond= P1,000,000 Premium on issue of bond = P62,000 Issue price of bond =…

Q: Sylvestor Company issues 9%, five-year bonds, on December 31, 2016, with a par value of $180,000 and…

A: Given that, Par value of bonds issued = $180000 Interest is payable on June 30 and Dec 31. Rate of…

Q: Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on…

A: When the bonds are issued at more than their par value it means that it has been issued at the…

Q: On January 1, 2016, Bonita Industries issued $4,000,000 of its 10% stated rate bonds for $4,475,661…

A: Extinguishment of debt  Liability is eradicated from company's balance sheet under extinguishment of…

Q: On January 1, 2016, Denver Inc. issued its 10% bonds in the face amount of P400,000, which mature on…

A: Please see Step 2 for required information.

Q: On January​ 1, 2018​,  Lane Unlimited issues 15​%, 10​-year bonds payable with a face value of…

A: 1) Premium on bonds payable = 1800 bonds * $5 = $9,000 It has to be amortised over the life of bonds…

Q: Monica Corporation has $4,000,000 of 8 percent, 25-year bonds dated May 1, 2016, with interest…

A: 1) Journal entry Date account and explanation Debit credit May 1,2011 Cash (4000000*103.5/100)…

Q: On January 1, 2016, Truffle Corp. issued 9% bonds in the face amount of P 5,000,000, which maature…

A: Interest expense = Issue price of the bonds x yield rate of interest x No. of months in calendar…

Q: On January 1, 2016, Mary Co. issued its 10% bonds in the face amount of P 1,500,000 which mature on…

A: A bond is a fixed-income investment vehicle that represents an investor's obligation to a borrower…

Q: On January 1, 2017, ABC company issued a $500,000, 8%, 10-year bond at the yield of 6%. Interest is…

A: Bonds are debt instruments issued by the company to investors. It is as good as a loan to the…

Q: On June 30, 2017, ABC Co. issued $6,000,000, 6%, 4-year bonds. The bonds were sold to yield an…

A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On November 1, 2015, Davis Company issued $30,000, ten-year, 7% bonds for $29,100. The bonds were…

A: SOLUTION- BOND-IT IS A FIXED INCOME INSTRUMENT THAT REPRESENT THE LOAN MADE BY AN INVESTOR TO A…

Q: Laurance Corporation issued P 400,000, 7%, 20-year bonds on January 1, 2017, for P 360,7217 This…

A: Date Account Titles Debit Credit a )January 1, 2017 Cash $360,7217     Discount on Bonds Payable…

Q: On June 30, 2016, King Co. had outstanding 9%, $5,000,000 face value bonds maturing on June 30,…

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

Q: On June 30, 2017, ABC Co. Issued $ 6,000,000, 6%, 4-year bonds. The sold to yield an effective…

A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: Berry Co. issued P800,000 of 12% face value bonds for P851,706. The bonds which were dated and…

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

Q: On January 1, 2020, Powell Corporation issued $600,000, 5%, 5-year bonds dated January 1, 2017, at…

A: GIVEN   On January 1, 2020, Powell Corporation issued $600,000, 5%, 5-year bonds dated January 1,…

Q: On June 1, 2017, HIJ Company purchased bonds with a face amount of 3,000,000 to be held to maturity.…

A: Bond Amortization Table It  is the  table  which shows the amount of interest expense/revenue,…

Q: E10-19 Gridley Ltd. issued £800,000, 11%, 10-year bonds on December 31, 2016, for £730,000. Interest…

A: Working Note: Discount on bonds=Par value-Issue price=800,000-730,000=70,000

Q: On March 1, 2016, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2016,…

A: BondsBonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: Pharoah Company issued $2,400,000 of 10%, 10-year bonds on January 1, 2017, at 104. Interest is…

A: As bonds are issued at premium, it means that bonds are sold at the amount that is greater than…

Q: Devers Corporation issued $400,000 of 6% bonds on May 1, 2017. The bonds were dated January 1, 2017,…

A: Bonds are the long term liability for the issuer. Generally company issues bonds to finance money…

Q: On January 1 2017, Aumont Company sold 12% bonds having a maturity value of $500,000 for…

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

Q: Wildhorse Co. issued 10%, 6-year, $2,739,400 par value bonds that pay interest semiannually on…

A:

Q: On December 31, 2016, Interlink Communications issued 6% stated rate bonds with a face amount of…

A: Price of the bond is the present value of the cash outflow at the end of the term and the present…

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.