Assume bonds payable are amortized using the straight-line amortization method unless stated otherwise. Journalizing bond transactions using the effective-interest amortization method Journalize issuance of the bond and the first semiannual interest payment under each of the following three assumptions. The company amortizes bond premium and discount by the effective-interest amortization method. Explanations are not required. Seven-year bonds payable with the face value of $83,000 and stated interest rate of 10%, paid semiannually. The market rate of interest is 10°/o at issuance. The present value of the bonds at issuance is $83,000. The same bonds payable as in assumption 1, but the market interest rate is 16%. The present value of the bonds at issuance is $62,433. The same bonds payable as in assumption 1, but the market interest rate is 8%. The present value of the bonds at issuance is $91,727.

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

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

Q: Devin Company computes the following bond interest amortization table for bonds issued on January 1,…

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

Q: On August 1, 20X2, White Co. acquired Black Co. bonds with a face value of P90,000 at 95 plus…

A: Present value of bond:-

Q: Oriole Company issued $760,000, 7%, 10-year bonds on January 1, 2022, for $815,933. This price…

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

Q: Sheridan Company issued $279,000, 9%, 15-year bonds on December 31, 2021, for $267,840. Interest is…

A: In the given question we need to prepare the journal entries for following: (a)The issuance of the…

Q: Present entries to record the selected transactions described below: Required: a. Issued $2,750,000…

A: The journal entries are as follows. (a) Cash A/C dr.                $2667,500 Discount A/C dr.…

Q: Marigold Corporation issued $370,000, 7%, 20-year bonds on January 1, 2022, for $333,674. This price…

A: Solution: Date Cash interest Interest Expense Discount amortization Unamortized discount Carrying…

Q: On January 1, a company issued and sold a $380,000, 6%, 10-year bond payable, and received proceeds…

A: Table of calculation

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: The issuance of bonds will increase the cash balance and the bonds payable balance of the company.…

Q: Al-Teeb Company issued OR 40,000, 3.5%, 15-year bond payable at 104 on January 1, 2018 Required:…

A: Issue value of Bonds = Face value of bonds x issue price = 40,000 x 104/100 = 41,600

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: Assume bonds payable are amortized using the straight-line amortization method unless stated…

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

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: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: The present value (PV) of bond the sum of the present value of interest and the PV of the maturity…

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A:

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: No. Date Account Titles and Explanation Debit Credit a. January 1, 2018 Cash $100,000…

Q: Presented below are two independent situations. a.   George Gershwin Co. sold $2,000,000 of 10%,…

A: a. Determine the amount of interest expense to be reported on July 1, 2020, and December 31, 2020.…

Q: Concord Corporation issues $2.30 million, 10-year, 9% bonds at 98, with interest payable each…

A: When bonds are sold at 98 Discounts on Bonds Payable = Actual cost- sale price  Discount on Bonds…

Q: Whispering Company issued $480,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is…

A: JOURNAL ENTRIES (1). Issue of bonds: DATE  PARTICULARS  DEBIT  CREDIT 1/1/20 Cash (480,000 /…

Q: Shopee Company was authorized to issue a 5-year, 10%, P5,000,000 bonds dated June 30, 2020.…

A:

Q: On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P4,800,000. The bonds…

A: As per PFRS 9 Financial instruments ,Issue of bond will be considered as Financial instruments as it…

Q: On September 1, 20x1, an entity issues bonds with face amount of P8,000,000 for P9,105,022,…

A: A bond is a fixed-income security that represents a borrower's loan from a lender (typically…

Q: Alexander Company issued $160,000, 12%, 10-year bonds payable at 96 on January 1, 2018.…

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

Q: Jaybird Mining issued $400,000, 6%, 5-year callable bonds payable that pay interest quarterly on…

A: Under the effective interest method, the interest expense to be recorded is computed according to…

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: Effective-interest amortization method:Effective-interest amortization method it is an amortization…

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: Discount on bonds payable: This is the value that arises when the bonds are sold at a price less…

Q: Massy Company issued $4,000,000 of 10-year, 11% bonds on January 4, 2021. The bonds pay interest…

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or…

Q: (Debt Investments) Presented below is information taken from a bond investment amortization schedule…

A: When a bond is issued at a less price than its par or face value, then it will be said as bonds are…

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: 1.

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

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

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: 1.

Q: On January 1, Year 1, Kenneth Cole Inc. issued $2,000,000, 5%, 10-year bonds, with interest payable…

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

Q: On June 30, Jameson Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: Issue of Bond: The bond may be issued at par value, premium & discount with annually or…

Q: On August 1, 2022, Bridgeport Corp. issued $483,600, 7%, 10-year bonds at face value. Interest is…

A: given that, Bridgeport Corp. issued bonds worth $483600 Rate of interest = 7% life of bond = 10…

Q: Hasley Company issued $800,000, 11%, 10-year bonds on December 31, 2018, for $730,000. Interest is…

A: Journal entries forms part of basic accounting where the transactions of an organisation are being…

Q: Theca Company issued $600,000, 9%, 20-year bonds on January 1, 2020, at 103. Interest is payable…

A: Journal entries are an accounting entries used by an firm to accounts its business transactions in…

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: 1.

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: 1.

Q: On January 1, Marigold Corp. issued $270,000, 7%, 10-year bonds at face value. Interest is payable…

A: Accrual of interest on December 31 = Face value of bonds x rate of interest x period = $270000*7%*1…

Q: Based on Question No. 1, I want answer of Question No. 2    On September 1, Deutsch Limited issues…

A: Definition:   Liabilities:  Liabilities are an obligation of the business to pay to the creditors in…

Q: On January​ 1, 2024​, Aaron Unlimited issues 10​%, 20​-year bonds payable with a face value of…

A: Amount received on issue of bonds = Face value of bonds x Selling price of bonds / 100 = $180,000 x…

Q: Determining the present value of bonds payable and journalizing using the effective-interest…

A: The presnt value of bond is $ 311580the compnay received $ 311580 as cash.

Q: On June 30, 2020 Porter Company issues 11%, five-year bonds payable with a face value of $120,000.…

A: Semiannual interest payment = Face value of bonds x rate of interest x 6/12 = $120,000 x 11% x 6/12…

Q: On January 1, a company issued and sold a $430,000, 5%, 10-year bond payable, and received proceeds…

A: GIVEN   On January 1, a company issued and sold a $430,000, 5%, 10-year bond payable, and received…

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: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: 1.

Q: On May 1, Saxophone Corp. issued $300,000, 9%, 10-year bonds for $281,307 when the market rate was…

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

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

A: 1.Journalize the issuance of the bonds on June 30.