Assume that you are the accountant of one of the investors of the bonds. The investor purchased P10, 000,000.00 of Retail Treasury Bond in February with 4.375% interest, 5-years. Prepare journal entries for the purchase of the RTBs, accrual of interest and when the bonds are redeemed.

Q: On January 1 of the current year, Barton Corporation issued 8% bonds with a face value of $91,000.…

A: When bonds are issued at a price less than the face value, then it means bonds are issued at a…

Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…

A: Cash(600000*102/100) Dr $612000 Bond payable  Cr                      $600000 Premium on issue   Cr.…

Q: The following transactions are taken from the records of the Elton Corporation. Prepare journal…

A: Solution- Note - Since you have posted a question with multiple subparts ,we will solve first four…

Q: On January 1, 2018, Quinton Corporation issued 8% bonds with a face value of $100,000. The bonds are…

A:

Q: On January 1, Elias Corporation issued 7% bonds with a face value of $94,000. The bonds are sold for…

A: Bonds will pay fixed amount of interest on face value of the bond on monthly/ quarterly/ half…

Q: Company has a calendar reporting year. Company purchased a 6-year bond for $100,000 on December 20,…

A: An investment in bond is classified as trading when investor intends to sell it quickly within one…

Q: On January 1 of the current year, Barton Corporation issued 9%, 5-year bonds with a face value of…

A: When Bonds are issued at discount such discount will be written off over the life of the period.…

Q: On January 1 of the current year, Baker Corp. purchased $50,000 of Chocolate Inc. bonds. These bonds…

A: If the coupon rate of the bond is more than its market rate (effective rate) it is said to be…

Q: Baron, Inc., issued $100,000 of its 8%, five-year bonds on January 1, 2016, at 98. Interest is paid…

A: Given, Jan 01, 2016 8% 5 year Bonds issued @ discount ($98) Face value = $ 100000   April 01, 2018…

Q: On January 1 of this year, the carrying value of XYZ Inc's bonds was $750,590. The face value of…

A: Carrying value of bonds = $ 750590 Face value of bonds = $ 760000 Gain or loss on redemption of…

Q: On January 1, 20x1, SPEED Company purchased 12% bonds, having a face value of P800,000. The bonds…

A: Bond is an investment security which is issued by large organizations to raise the fund. The bond…

Q: Cullumber Company purchased bonds with a face amount of $725000 between interest payment dates.…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

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

A: Working Notes :-                                  Discount on purchase of…

Q: On January 1, 2018, Davie Services issued $20,000 of 8% bonds that mature in five years. They were…

A: Premium on issue of bonds = Isue value - face value of bonds = $20,750 - $20,000 = $750

Q: On January 1, Year 1, Young Company issued bonds with a face value of $111,000, a stated rate of…

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

Q: On March 1, 2011, Fast Freight Company sold Rs. 400,000 of its 9 percent, 20-year bonds at 109.9.…

A: Amortization Schedule Date Interest payment Interest Expense Amortization of premium Balance in…

Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967,707. The bonds were dated…

A: Solution:- Introduction:- Journal entry is the first step in the accounting process. It is used to…

Q: On January 1, Innovative Solutions, Inc., issued $160,000 in bonds at face value. The bonds have a…

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

Q: On September 30, Jose’s Jalapenos Inc., issued $1,000,000 of 10-year 9% bonds sated September 30,…

A: Journal entries are prepared to record the financial and non financial transactions of the business.

Q: 1. Determine the value to be assigned to the bonds and the warrants and prepare the journal entry to…

A:

Q: Emerald, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries is a process of recording various transactions in a chronological order. It is…

Q: Krystian Inc. issued 12-year bonds with a face value of $150,000 and a stated rate of 4% when the…

A: Formula: Total cash flows = Principal + Interest

Q: On August 31, 2021, DASHER Company issued at 104 plus accrued interest, three thousand 10% bonds…

A: Hi since you have posted a question with multiple subparts we are solving the 1st 3 subparts for…

Q: On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000…

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

Q: On April 1, 2018, Western Communications, Inc., issued 12% bonds, dated March 1, 2018, with face…

A: 1.

Q: On January 1, when the market interest rate was 9 percent, Seton Corporation completed a $150,000, 8…

A: Interest Expense : Carrying value x 9% Cash Paid : 150,000 x 8% Discount Amortized : Interest…

Q: Mellilo Corporation issued $5 million of 20-year, 9.5 percent bonds on July 1, 2011, at 98.…

A: Bond discount is the difference between the selling price of the bond and the face value of the…

Q: On January 1 of the current year, Barton Corporation issued 12% bonds with a face value of $87,000.…

A: SOLUTION- COMPUTATION FIRST THE YEARLY AMORTIZATION OF THE BOND DISCOUNT- PARTICULARS AMOUNT $…

Q: On January 1, Year 1, Hart Company issued bonds with a face value of $150,000, a stated rate of…

A: Amortisation Table Date Cash Payment Interest Expense Premium Amortization Carrying Value…

Q: On January 1, the Elias Corporation issued 10% bonds with a face value of $50,000.  The bonds are…

A: The total interest expense for an organization's payable bonds over the course of a reporting period…

Q: The company has outstanding bonds payable with a total face value of $100,000. On July 1, the…

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

Q: On January 1, Year 1, Hart Company issued bonds with a face value of $103,000, a stated rate of…

A: The bonds are issued at premium means the bonds are issued at more value than face value of bonds.

Q: On January 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a…

A: DISCLAIMER: MARKET RATE IS NOT PROVIDED FOR  CALCULATING AMORTIZATION THOUGH I PROVIDED YOU WITH ITS…

Q: At the beginning of the current year, Candice Company acquired bonds with face amount of P3,000,000…

A:

Q: On October 1, 2010, Tender Corporation issued Rs. 500,000 of 9 percent bonds at 96. The bonds are…

A: Given that: Face value of bonds = $500,000 Issue price of bonds = 500,000 * 96% = $480,000 Discount…

Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2021, for $967,707. The bonds were dated…

A: 1.

Q: Eric Corp had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due in…

A: Journal entries are used to record transactions which was performed by the business during its…

Q: On January 1 of the current year, the Barton Corporation issued 10% bonds with a face value of…

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

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 90 bonds with a face value of $1,060 for $99,400. The bonds…

A: Solution: journal entry to record the first payment to the bondholders is as  under:

Q: On January 1, Elias Corporation issued 7% bonds with a face value of $79,000. The bonds are sold for…

A: Working Note: 1. Discount on Bonds Payables will be = Face Value - Issue Price = $79,000-$76,630 =…

Q: What amount did Mountain receive from the bond issuance?

A: Given: No of Bonds Issued 200 Face Value  ₱1,000 Issued at premium of 1% Rate of Interest 9%…

Q: On January 1 of the current year, the Queen Corporation issued 12% bonds with a face value of…

A: Bonds: Bonds are debt instruments issued by the borrower company to its lenders. Bonds are issued at…

Q: On December 31, 2020, Phil purchased $20,000 of newly issued bonds of Texas Corporation for $16,568.…

A: Please see Step 2 for required information.

Q: On January 1, the Kings Corporation issued 10% bonds with a face value of $98,000. The bonds are…

A: Bond interest expense = Cash payment of interest + Amortization of discount = 98000*10% + 196 =…

Q: On January 1 of the current year, the Barton Corporation issued 6% bonds with a face value of…

A: A bond is a borrowing security issued by a company to raise funds from the market by making an…

Q: a) April 1, 2011, to record the issuance of bonds b) September 30, 2011, to pay interest and to…

A: April 1, 2012 Cash A/c dr 16,000,000      To 20 year 10% Bond 16,000,000 (To record Issue of bonds)…

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…