(b) Splish Inc. issued $590,000 of 9%, 10-year bonds on June 30, 2020, for $488,488. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Splish uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2020. (Round intermediate calculations to 6 decimal places, e.g. 1.251247 and final answer to 0 decimal places, e.g. 38,548.) Interest expense to be recorded $?

Q: Blue Company issued $ 396,000 of  10%,  20-year bonds on January 1, 2020, at  102. Interest is…

A: Semiannual interest payment= face value of bonds x rate of interest x no. of months/12 = $396,000 x…

Q: On March 1, 2022, a company issued a four-year, P3,000,000  face value, 11% term bonds for…

A: Bond is issued by the company for raising finance for the business working. It is considered a…

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

A:

Q: Homwork question 5- chapter 9

A: Calculate the amount of interest expense:

Q: On January 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: On January 1, 2019, Black Panther, Inc. issued P4,000,000 of 9% bonds, dated January 1 at 97.…

A: Determine Carrying amount of bonds payable Face value of bonds P4,000,000 Issued at 97% issued…

Q: On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay interest…

A: Market Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: Swifty Company issued $576,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable…

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

Q: ) On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

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

Q: On January 1, 2020, Burger Company issued P2,000,000 of 10-year, 8% bonds at par. The bonds, dated…

A: Bonds carrying amount at January 2, 2020 = Par value of bonds - Bond issue costs

Q: On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which…

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

Q: On January 1, 2020, Skysong Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: On March 1, 2018, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A:

Q: (b) Wildhorse Inc. issued $570,000 of 9%, 10-year bonds on June 30, 2020, for $471,929. This price…

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

Q: On January 1, 2021, Lyle's Limeade issues 3%, 20-year bonds with a face amount of $78,000 for…

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

Q: On January 2, 2015, Sandhill Corporation issued $1.050,000 of 10% bonds at 97 due December 31, 2024.…

A: Issue Price of face amount of $630000 ($630000 * 97%) $6,11,100 Discount on Bonds Payable ($630000…

Q: Olay Inc. issues $160,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price…

A: a. Compute the S.P. (selling price) of bonds at 10% as follows:

Q: On January 1, 2020, Stellar Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were…

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

Q: On January 1, 2016, Pharaoh Company issued 3-year bonds with a face value of P1,200,000 and stated…

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

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A:

Q: On July 1, 2019, Fewa Company issued P4,000,000 of 16% bonds to yield 14%. Interest is payable…

A:

Q: On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The…

A: Net issue price = (Face value of bonds x issue price/100) - Bonds issue cost = (₱5,000,000 x…

Q: On January 1, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. Thebond interest is…

A: The correct option is option “d”.

Q: What amount of interest expense will be recorded in the December 31, 2021, annual income statement?

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

Q: Teton Corporation issued $600,000 of 7% bonds on November 1, 2020, for $644,636. The bonds were…

A: Step 1: Compute the interest payable as follows:

Q: At the beginning of 2020 Max company issued 10% bonds with a face value of 900,000. These bonds…

A: Coupon rate = 10%/2 = 5% Market rate = 12%/2 = 6% Number of periods = 5*2 =10 Interest paid = Face…

Q: On January 1, 2020, Ironman Steel issued $800,000, 8-year bonds for $861,000. The stated rate of…

A: Calculations:

Q: Sheffield Company sells  10% bonds having a maturity value of $ 1,300,000 for $ 1,206,280. The bonds…

A: Annual interest payment = face value of bonds x rate of interest x no. of months/12 = 1,300,000 x…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On January 1, 2019, Gates Corporation issued $200,000 of 5-year bonds due December 31, 2023, for…

A: In the given sum we will have to calculate the amortization expenses and interest expenses of the…

Q: On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: INTEREST EXPENSE IS THE COST INCURRED BY AN ENTITY FOR THE BORROWED FUNDS .

Q: On January 1, 2020, Flounder Corporation issued $540,000 of 7% bonds, due in 10 years. The bonds…

A: Solution: Journal Entries - JWS Corporation Date Particulars Debit Credit 1-Jan-20 Cash Dr…

Q: On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

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

Q: On January 1,2020, Pharaoh Company issued 3-year bonds with a face value of P1,200,000 and stated…

A: The present value of bond is calculated on the annual cash outflows from the bond interest and…

Q: On January 1, 2020, Swifty Corporation issued $450,000 of 7% bonds, due in 8 years. The bonds were…

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…

Q: On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-year bonds. The bonds pay interest…

A: Prepare journal entries as follows: Result:

Q: On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1,000,000 and an annual…

A: Bonds issued at discount: Bonds are said to be issued at discount if the issue price is less than…

Q: On January 1, 2020, Grouper Corporation issued $480,000 of 7% bonds, due in 10 years. The bonds were…

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

Q: On January 2, 2015, Shamrock Corporation issued $1,900,000 of 10% bonds at 97 due December 31, 2024.…

A: When bonds are issued at discount, the discount on issue of bonds need to be carried forward and…

Q: On January 1, 2021, GLITTER Company issued 10% bonds dated January 1, 2021 with a face amount of…

A: Half year coupon rate=10%2=5%

Q: On July 1, 2019, Matalik Company issued 5,000 of the P1,000 face value, 8% bonds for P4,615,000 to…

A: Since effective interest rate method is being used.  As per effective interest rate method the…

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: At the beginning of 2020, Sheridan Company issued 8% bonds with a face value of $3400000. These…

A: Date (A) Interest payment (B) 4% * face value  Interest expenses(C)  5%*pervious book value in G…

Q: On January 1, 2019,CalderetaCompany purchased 5-year bonds with face value of P8,000,000 and stated…

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

Q: On January 1, 2022, Huff Co. sold P1,000,000 of its 10% bonds for P885,296 to yield 12%. Interest is…

A: The bonds are the financial instruments for the business that are issued by business to raise money…

Q: On January 1, 2020, Edison Co. issued eight-year bonds with a face value of P 2,000,000 and a stated…

A: Solution: Bonds are the debt instruments issued by entity to obtain funding. Bonds are having…

Q: ight-line interest expense on the December 31 annual income statement? (Enter your answer in whole…

A: Discount on bonds payable = Face value - Issue price =$60,0000,000-$55,537,005…

Q: On January 1, 2019, Toni Corporation issued 3,000 of its 9%, P1,000 bonds when the prevailing market…

A:

Q: Grocery Corporation received $316,189 for 9.00 percent bonds issued on January 1, 2021, at a market…

A: The answer of the above question is in the Next Step