A $500,000 bond issue on which there is an unamortized discount of $50,000 is redeemed for $475,000. Journalize the redemption of the bonds.
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: A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the amount…
A: the amount related to the bond issue : 1) Face amount is $26,000,000
Q: A $300,000 bond was redeemed at 98 when the carrying amount of the bond was $292,000. The entry to…
A: Option b is the correct option.
Q: Issued $500,000 of 10-year, 5% bonds at 104, with interest payable semiannually. Description Debit…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
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: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Bonds Payable has a balance of $1,137,000 and Discount on Bonds Payable has a balance of $13,644. If…
A: Bonds: Bonds is a long-term liability of a company where it has to repay the principal amount along…
Q: Cullumber Company issued $400,000 of 5-year, 5% bonds at 95 on January 1, 2022. The bonds pay…
A: Bond: It refers to a financial instrument that reflects an acknowledgement of debt and states a…
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: A $490,000 bond issue on which there is an unamortized discount of $33,000 is redeemed for $472,000.…
A: Journal Entry: Journal entry has two effects for every transaction. The journal entry is passed by…
Q: If $949,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is…
A: Bonds: Which are issued by corporates and governments. Bonds pay fixed rate of interest.
Q: A $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for…
A: The journal entries are prepared to keep the record of day to day transactions of the business.…
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: On January 1, a company issued and sold a $420.000, 3%. 10-year bond payable, and received proceeds…
A: In order to determine the discount on bonds payable, the amount received from proceeds is required…
Q: On December 31, a $1,000,000 bond issue on which there is an unamortized discount of $71,600 is…
A: Journal entry is the primary step to record the transaction in the books of accounts. The debit and…
Q: A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to…
A: Bonds: Bonds are the financial debt instruments issued by the corporations to raise the capital for…
Q: Riverbed Corp issues 940, 10-year, 8%, $1000 bonds dated January 1, 2020, at 96. The journal entry…
A: Bonds are recognized as a financial instrument used to raise finance for the organization. It is…
Q: If $1,140,000 of 12% bonds are issued at 102 3/4, the amount of cash received from the sale is…
A:
Q: 2. Swisher Company issued $2,000,000 of bonds on January 1, 2020. Instructions a. Prepare the…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
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: 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: Bonds Payable has a balance of $951,000 and Discount on Bonds Payable has a balance of $11,412. If…
A: Introduction:- The following basic information as follows under:- Bonds Payable has a balance of…
Q: A $375,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $320,000.…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: Bonds Payable has a balance of $5,000,000, and Discount on Bonds Payable has a balance of $150,000.…
A:
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: 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: On January 1, $858,000, 5-year, 10% bonds, were issued for $832,260. Interest is paid semiannually…
A: When the issue price is less than the face value of bonds the bonds are said to be issued on…
Q: A $1,900,000 bond issue on which there is an unamortized premium of $101,264 is redeemed for…
A:
Q: A company received cash proceeds of $426,525 on a bond issue with a par value of $400,000. The…
A: Bond is a financial instrument issued by a company in order to raise funds. In exchange for funds,…
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: A Redemption of bonds payable A $1,500,000 bond issue on which there is an unaumortized discount of…
A: All the transactions of the company that are happened during the year will be recorded first in the…
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: A $515,000 bond issue on which there is an unamortized discount of $36,000 is redeemed for $463,000.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: If $1,153,000 of 9% bonds are issued at 102 1/2, The amount of cash received from the sale is…
A: Bonds are considered a cheaper source of finance. It is because the interest on bonds is a…
Q: A $650,000 bond issue on which there is an unamortized discount of $45,00, is redeemed for $600,000.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: A $291,000 bond was redeemed at 98 when the carrying amount of the bond was $286,635. What amount of…
A: Bonds are kind of loan taken which is paid after certain period of time. Face value of bonds…
Q: A $375,000 bond issue on which there is an unamortized discount of $40,000 is redeemed for $320,000.…
A: Carrying value of the bonds = Face value of bonds - Unamortized discount = $375,000 - $40,000 =…
Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…
A: Given: Bond payable $800,000; Unamortized premium $57,000; and proceeds from redemption of bond is…
Q: A $500,000 bond issue on which there is an unamortized discount of $35,000, is redeemed for…
A: Outstanding Bonds of $465,000 ($500,000 - $35,000) are redeemed for $475,000 So, $10,000 is the Loss…
Q: d mature on December 31, 2031. ABC uses the effective interest method of amortizing bond discount.…
A: When bonds are issued a price less than its face value , there is a discount on bonds payable. The…
Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: A $1,200,000 bond issue on which there is an unamortized premium of $63,956 is redeemed for…
A: Journalize the redemption of the bonds.
Q: Company A, Inc. issues $500,000, 10-year, 8% bonds at 98. Prepare the journal entry to record the…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: Present entries to record the selected transactions described below: a. Issued $2,750,000 of…
A: Bonds are the debt instrument that is used to raise long-term debts. The bonds payable is a…
Q: A $880,000 bond issue on which there is an unamortized premium of $84,000 is redeemed for $823,000.…
A: Bonds are the debt instruments using which and entity can raise finance.
Q: On January 1, a company issued and sold a $410,000, 4%, 10-year bond payable, and received proceeds…
A: Amortized cost = (Face value - Issue price) / Periods Amortized cost = ($410,000 - $405,000) /…
Q: Flounder Corp. issues 850, 10-year, 8%, $1000 bonds dated January 1, 2020, at 97. The journal entry…
A: A bond is a debt security, where an investor lends money to a company.
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- Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discountVolunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premiumDixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discount
- Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premiumOn Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?Bats Corporation issued 800,000 of 12% face value bonds for 851,705.70. The bonds were dated and issued on April 1, 2019, are due March 31, 2023, and pay interest semiannually on September 30 and March 31. Bats sold the bonds to yield 10%. Required: 1. Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2. Prepare a bond interest expense and premium amortization schedule using the effective interest method. 3. Prepare any adjusting entries for the end of the fiscal year, December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. Assume the company retires the bonds on June 30, 2020, at 103 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight-line method of amortization b. effective interest method of amortization
- On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05Waldron Inc. issued $400,000 bonds with a stated rate of 7% when the market rate was 5%. They are 3-year bonds with interest to be paid annually. Prepare a table to amortize the premium of the bonds. Assume that the bonds were issued for $421,844.Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal entry to record this transaction includes ________. A. a debit to Bonds Payable for $100,000 B. a debit to Discount on Bonds Payable for $4,000 C. a credit to cash for $96,000 D. a credit to Discount on Bonds Payable for $4,000
- Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received $45,000. What is the journal entry to record the sale of the bonds?Naval Inc. issued $200,000 face value bonds at a discount and received $190,000. At the end of 2018, the balance in the Discount on Bonds Payable account is $5,000. This years balance sheet will show a net liability of ________. A. $200,000 B. $180,000 C. $195,000 D. $205,000Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.
