a) Using the effective interest rate method, what is the interest expense at December 31, 2018? Interest Expense at December 31,2018 = $___________________________ B)What is the carrying value of the bond at December 31, 2018? Carrying value of bond on December 31, 2018 = $ ________________________ C)What is the carrying value of the bond at January 1, 2023? Carrying value of the bond at January 1, 2023 =$____

Q: On January 1, 2020, MP's customer issued a 3 year 8% note, PHP 3,000,000 for services billed to be…

A: Carrying amount is also known as carrying value or book value. The carrying amount of a note issued…

Q: On January 1, 2021, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is…

A: As you posted multiple sub parts in questions we are answering first three sub parts only kindly…

Q: On January 1, 2021, Lyle’s Limeade issues 4%, 10-year bonds with a face amount of $90,000 for…

A:

Q: On January 1, 2020, Sunland Company, a calendar-year company, issued $897000 of notes payable, of…

A: Solution: Current liability = Amount due in next 1 year = 224,250 Long term Debt = Due after 1 year…

Q: The adjusted trial balance for Waterway Industries at the end of the current year, 2021, contained…

A: Liabilities other than the current liabilities are called long-term liabilities.

Q: On January 1, 2020, a company issued $548,000 of 5-year, 16% convertible debentures at 106. Interest…

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

Q: The interest expense on the income statement for the year ended December 31, 2021 is:

A: Bonds are a kind of financial instrument issued for raising cash by the entities for a perspective…

Q: On 31 May, 2020, the business borrowed $30,000 on a four year, 5% per annum loan that calls for…

A: Adjusting entries are prepared by management to ensure the accrual basis accounting system. It is…

Q: Q10

A: 1.Prepare amortization schedule:

Q: Cute Company disclosed the following information on December 31, 2021:   Mortgage payable, issued…

A: Current Liabilities are the obligations which will be due for repayment within a year .

Q: On July 1, 2018, Ross-Livermore Industries issued nine-month notes in the amount of $400 million.…

A:

Q: On March 1, 2017, Fun Company borrowed 1, 000,000 and signed a 2-year note bearing interest at 12%…

A: Formula: Interest amount = Principal amount x Interest rate x Time period.

Q: Allen Inc. took out a 1-year, 8%, $100,000 loan on March 31, 2018. Interest is due upon maturity of…

A: Formula: Interest expense = Loan amount x Interest rate x Time period

Q: At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These…

A: Interest expense is the outlay incurred by an entity due to borrowing of notes or issue of bonds or…

Q: On January 1, 2021, a company issues $720,000 of 8% bonds, due in twelve years, with interest…

A: Amortization schedule      Formula sheet of the above schedule

Q: On December 1, Milton Company borrowed $390,000, at 7% annual interest, from the Tennessee National…

A: Interest amount from December 1 to December 31 i.e. 1 month = 390,000 x 7% x 1 month/12 months…

Q: [The following information applies to the questions displayed below.] Greener Pastures Corporation…

A: Accounting equation represents the company’s financial position in an equation form. It can be…

Q: On January 1, 2018, Bradley Recreational Products issued $100,000, 9%, four-year bonds. Interest is…

A: 1. Prepare the amortization schedule to determine the interest expenses at effective interest rate…

Q: On May 1, 2020, Zachary Corporation borrowed $2,500 on a two-year, 6% note payable. Interest is due…

A: The company borrowed amount on the dated May 1, 2020. Interest will be payable after six months.…

Q: On March 1, 2020, LINGATONG Company has received a P10,000, two year note bearing interest at 12%…

A: Lingatong Company Receive P10,000  Accrued Interest Receivable at 31st Dec,2021 is Interest Expense…

Q: The adjusted trial balance for Bonita Industries at the end of the current year, 2021, contained the…

A: Liabilities can be defined as business obligations which needs to be fulfilled in the future time…

Q: On January 1, 2021, Ganda Company issued P5,000,000, 8% serial bonds payable to be repaid in the…

A: Interest expense on December 31, 2021 = present value of the bonds x yield rate x no. of the months…

Q: On October 1, 2021, Shane Company issued 5,000 of the P1,000 face value, 12% bonds at 110 including…

A: The main purpose of bon issuance by the company is to raise capital or money from the outside.Bonds…

Q: The adjusted trial balance for Bramble Corp. at the end of the current year, 2018, contained the…

A: Solution:   Total long term liabilities reported on balance sheet = Bond payable + Premium on bond…

Q: On November 1, 2014, EZ Products borrowed $48,000 on a 5%, 10-year note with annual installment…

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

Q: DONNER Company issued 3-year, 12% bonds with face amount of #4,000,000. Interest is payable semi-…

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

Q: On January 1. 2020, Sheridan Company, a calendar-year company, issued S608000 of notes payable, of…

A: A current liability is an obligation which needs to be settled within a period of 12 months and any…

Q: XYZ Company lent $9,000 at 10% interest on December 1, 2019. The amount plus all interests accrued…

A: Formula: Interest amount = Loan amount x Interest rate x Time period

Q: Presented below are various account balances of K.D. Lang Inc. a.   Unamortized premium on bonds…

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

Q: On January 1, 2020, a company issued a $30,000 three-year, 4% note payable, repayable in 12…

A: Notes Payable The purpose of taking the Notes payable to the firm to generate adequate liquidity in…

Q: Min Corporation's accounting year ends on December 31 of each year. On December 31, 2016 Min Corp.…

A: Loan amount (L) = P 250000 Number of annual payments (n) = 8 Interest rate (r) = 8% Let the annual…

Q: Mcdonaugh Corporation issued $250,000 of 5%, 10-year bonds payable onJanuary 1, 2019. The market…

A: Bonds Payable: Bonds payable is a liability account that contains the amount owed to bondholders by…

Q: March 1, 2021, a company issued a four-year, P3,000,000 face value, 11% term bonds for P3,197,877.…

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

Q: On January 1, 2020, Bobond issued a 3-year, 9% P1,000,000 at par. Interest is payable semi-annually…

A: A bond seems to be a sort of financial instrument used by a business to borrow money. A bondholder…

Q: On January 1, 2021, a company issues $710.000 of 10% bonds, due in twelve years, with interest…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: On 1 January 2010, Elegant Fragrances Company issues £1,000,000 face value, fi ve-yearbonds with…

A: Given: Issue of face value = $ 1,000,000 Amount of annual interest payments = $ 55,000 Interest rate…

Q: Donner Corporation issues 4-year bonds with a face value of $5,000,000 and a stated rate of 5% on…

A: Interest Expenses are calculated on book value of bonds as per market rate of interest i.e. 6%

Q: On January 1, 2020, Elmer Company, a calendar-year company, issued $2,000,000 of notes payable, of…

A: In case a portion of a debt is payable within next year, then that portion is reported as current…

Q: At January 1, 2020, Konerko Corp. issued $40,000,000 of 6%, 12-year bonds that paid interest…

A: Bonds: It is also known as fixed-income security, is a debt instrument created for the purpose of…

Q: On January 1, 2012 Zesto Company received $1,032,880 for $1,000,000 face amount, 12% bonds, a price…

A: Semiannual interest payment = face value of bonds x interest rate x 6/12 = 1000000*12%*6/12 = $60000

Q: Shamrock Industries borrows $21600 at 5% annual interest for six months on October 1, 2022. Which is…

A: Interest accrued on December 31, 2022 = Amount borrowed x rate of interest x no. of months/12 =…

Q: PANGILINAN Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable…

A: Interest expense on October 1, 2021 = issue value of bonds x effective rate of interest x no. of…

Q: On May 1, 2021, Nees Manufacturing lends $10,000 to Roberson Supply using a 9% note due in 12…

A: Interest revenue = Amount of notes x rate of interest x period May 1, 2021 to December 31,2021 = 8…

Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…

A: State amount of interest expense reported on the income statement for 2019 as below:   The interest…

Q: At the beginning of 2020, Leira Corporation issued 10% bonds with a face value of P 1,500,000. These…

A: Working:

Q: The adjusted trial balance for Vaughn Corp. at the end of the current year, 2018, contained the…

A: Hence, the correct answer is option c ($2,068,000).

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: On January 1, 2019, James Co. received a 10%, five year note from a customer. Interest is paid every…

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

Q: On January 1, 2014, Fabco borrowed $5,000,000 from First Bank of Newburg. The loan had a term of…

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