Applegate Corporation sells $170,000, 9%, 20-year bonds for 96 on January 1. Interest is paid on January 1 and July 1. Straight-line amortization is used. The amount of interest expense recorded on July 1, six months after issuance is:

Q: On January 1, Year 1 Naririto Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A: SOLUTION  A JOURNAL ENTRY RECORDS A BUSINESS TRANSACTION IN ACCOUNTING SYSTEM FOR AN ORGANIZATION.

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: Hendricks Corporation purchased trading investment bonds for $50,000 at par. At December 31,…

A: a. Account Titles and Explanation Debit Credit Investment in trading securities $50,000…

Q: AAA Inc. purchased P400,000 of BBB Corp. ten-year bonds with a stated interest rate of 8 percent…

A: GIVEN   AAA Inc. purchased $400,000 of BBB Corp. ten-year bonds with a stated interest rate of 8%…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: Journal entry The basic process of accounting work is to journalize the required transaction into…

Q: On January 1, 2021, Ruzak Co. sold five-year, 6% bonds with a face value of $700,000.  Interest is…

A:

Q: On August 1 of the current year, Fleetwood Company purchased 5,000 , P1,000 , 12% bonds on Ritchie…

A: Sale value of bonds = No. of bonds sold x sales price = 2000 x P1000 x 102/100 = P2,040,000

Q: Jan Company sells 5-year bonds with a face value of $100,000 for $97,000. Interest is paid…

A: 1. $5000

Q: On April 30, Kate Company issued 7,000 of 15% ₱1,000 bonds at 95. The bonds have a five-year term…

A: Bond Issued = 7,000 Bond issue cost = ₱125,000 Face Value = ₱1,000 Coupon rate = 15% Time period = 5…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: SOLUTION- BONDS ARE INVESTMENT SECURITIES WHERE IN INVESTOR LENDS MONEY TO A COMPANY OR A GOVERNMENT…

Q: XYZ Corporation issues $1.000,000 of face value bonds that mature in 20 years at a discount on…

A: Interest accrued = face value of bonds x rate of interest x no. of months/12 = 1000000*6%*12/12 =…

Q: Assume the bonds are issued for $6,940,000 on January 1 to yield an effective interest rate of 6…

A: Interest Payments  Interest payments on government debt, such as long-term bonds, long-term loans,…

Q: Assuming that both parties use the straight-line method, what consolidation entry would be required…

A: 1) Year Book Value at the beginning of the year Effective Interest rate Cash Interest…

Q: On January 1, Year 1 Naruto Company purchased P100,000 face value 5 year bond of Wolf Corp for…

A: Ii

Q: Franklin Corporation issues $98,000, 10%, five-year bonds on January 1 for $102,400. Interest is…

A: Compute the unamortized premium as of July 1.   Unamortized premium as of July 1 = Issue price of…

Q: ABC Company , a holder of P1,000,000 XYZ Company bonds, collected the interest due on March 31, year…

A: A consolidated balance sheet is acknowledged as the balance sheet prepared by a parents company…

Q: Keyser Company acquired $3,514,000 face value, 9% bonds as an available-for-sale investment on…

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

Q: On January 1, Year 1, Grow Company purchased P 1,000,000, 12% bonds of Glow Company for P 1,063,394,…

A:

Q: b. Record the entry for the purchase of the bonds by West Company on July 1. Date Account Name…

A:

Q: Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on…

A: Date Accounts Debit Credit January 2, 2022 Cash 200,000,000     Discount on Bonds 39,500,000…

Q: Demopoulos Company acquired $150,000 of Marimar Co., 6% bonds on May 1 at their face amount.…

A: Introduction:- Journal entry means as follows:- Journal entry is used to record business…

Q: On August 1, 2021, Sheffield Corporation, a public company, purchased $86,400 of Alaska Ltd.…

A: SHEFFIELD CORPORATION BALANCE SHEET (PARTIAL) For the year ended December 31, 2021…

Q: Cronan, Inc., sells $1,000,000 general obligation bonds for 98. The interest rate on the bonds,…

A: a.

Q: Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on…

A: working note: 1. calculation of decrease in the bond price. fair value of the bond as on January 2…

Q: On January 1, Year 1 Narito Company purchased a P100,000 face value 5-year bond of Wolf Corporation…

A: SOLUTION- Bond: When the company needs money, the company issues fixed-income security that the…

Q: On January 1, Year 1, Narito Company purchased P100,000 face value 5-year bond of Wolf Corporation…

A: Impairment Loss Impairment can happen as a consequence of one-time or unique occurrences, such as a…

Q: At April 1, 2021, Candy Company sold the Sugar bonds for $3,090,000. Assuming Candy Company has a…

A: Any change in the value of Available-for-Sale Debt Securities are recorded an gain or loss…

Q: Gonzalez Company acquired $200,000 of Walker Co., 6% bonds on May 1 at their face amount. Interest…

A: Bond investment: Bond investments are debt securities which pay a fixed interest revenue to the…

Q: On July 1 of the current year, West Company purchased for cash, 40, $10,000 bonds of North…

A: SOLUTION-   WORKING- 1- PRESENT VALUE OF PRINCIPLE AT 3% AND 6 PERIODS = 40 *10000*0.8375…

Q: Landis Co. purchased €500,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2021, with…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: On January 1, 20x1, Dagul Co. acquired 10%, P4,000,000 bonds for P3,807,853. The principal is due on…

A: Date Amount collected Interest Amortization Present value 01.01.20x1 0     3807853 31.12.20x1…

Q: RCM Corporation, a calendar-year firm, is authorized to issue $200,000 of 10 percent, 20-year bonds…

A: Solution...   Issue price = $200,000  RATE OF INTEREST = 10%  Interest expenses accrued on April 1 =…

Q: On July 1, Year 2, San Benon Company purchased 4,000 of the P1,000 face amount, 8% bonds of Oat…

A: San Benon classifies the securities as at amortized cost. It means the interest expense will be…

Q: Gillooly Co. purchased $360,000 of 6%, 20-year Lumpkin County bonds on May 11, Year 1, directly from…

A: SOLUTION WORKING NOTE- A- 360000 *6 % 40/360 = 2400. B- 360000*6%*6/12 = 10800. C-1 90000*98%…

Q: On February 1, Hansen Company purchased $84,000 of 5%, 10-year Knight Company bonds at their face…

A: Accrued interest=Face value*coupon rate*n/12

Q: Record the entry for the purchase of the bonds by West Company on July 1.

A: Computation of bond price  Present value of bond = Cash inflow for each period x PVIFA ( i, t) +…

Q: On July 1, Year 2, MODESTA Company purchased P10 million of West Company’s 8% bonds due on July 1,…

A:

Q: On January 1, Year 1, Narito Company purchased a P100,000 face value 5-year bond of Wolf Corporation…

A: Bonds receivable: It is an investment in bonds of an organization which pays a fixed rate of…

Q: On January 1, Year 1 Naririto Company purchased P100,000 face value 5-year bond of Wolf Corp for…

A:

Q: y 1, firm issued $500,000 of 15   year, 6 percent bonds payable for $552,325, yielding an effective…

A: Bond interest expense is the aggregate interest expense incurred during a reporting period for an…

Q: Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid…

A: Total amount on premium on bonds issue = Issue price - Face value of bonds = $52,100 - $50,000 =…

Q: On February 1, Hansen Company purchased $120,000 of 5%, 20-year Knight Company bonds at their face…

A: Calculate the amount of interest received on $120,000 from February 1 to July 1 (5 months).

Q: On May 1, 20X1, Starlight Company purchased $750,000 of Gazing Corp's 12% bonds at 100 plus accrued…

A: Journal entries shows the recording of the transaction during an accounting year and every…

Q: n July 1 of the current year, West Company purchased for cash, 8, $10,000 bonds of North Corporation…

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

Q: On January 1, Year 1, Tina Company purchased P500,000, 12% bonds of Erika Company for P464,882, a…

A: Working Notes :-                       Company intended to collect the principal and…

Q: On February 1, Hansen Company purchased $108,000 of 5%, 15-year Knight Company bonds at their face…

A: Interest received july 1=108,000×5%×612=$2,700