BE11.1 (LO 2) Meera Ltd. issued 4,000, 8%, 5-year, £1,000 bonds dated January 1, 2020, at 100. Interest is paid each January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2020. Prepare the adjusting journal entry on December 31, 2020, to record interest expense. Prepare the journal entry on January 1, 2021, to record interest paid.

Q: On January 1, 2009, Zero Co. issued its 10% bonds in the face amount of P4,000,000, which mature on…

A: Formula: Adjusted unamortized bond premium at December 31, 2009 = Total bond premium - Amortization…

Q: On January 1, 2023, Jones Corporation issued $2.982.000, 9%, 5-year bonds with interest payable on…

A: Interest expense on bonds is calculated at the market rate of interest on the issue value of the…

Q: On Jan. 1, 2020, Eee Company issued 9% bonds in the amount of P 500,000, which mature on Jan. 1,…

A: Formula: Carrying value of bonds payable = Issue price of the bonds + Amortization of bond discount…

Q: On January 1, 2021, ABC Company issued its 9% bonds in face amount of P4,000,000, which mature on…

A: Discount on bonds issue = Face value of bonds - Cash proceeds from the sale of the bonds =…

Q: Super Splash issues $870,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…

Q: On June 1. 2020. Mitchell Inc. issued 100, 8%, $1,000 bonds dated June 1, 2020 for $108,530. The…

A: The face value of a bond is 100000 and it is issued at 108530. The premium on the issue of bond is…

Q: BE11.1 (LO 2) Meera Ltd. issued 4,000, 8%, 5-year, £1,000 bonds dated January 1, 2020, at 100.…

A: Bonds are the financial instrument that is issued by the corporates to gather the debt funds from…

Q: On July 1, 2013, AC Corporation issued one thousand of its 10%, P1,000 callable bonds for P960,000.…

A: Total discount on bonds = Face value of bonds - issue value = P1000000 - 960000 = P40,000

Q: P15-1A On May 1, 2012, Chance Corp. issued $600,000, 9%, 5-year bonds at face value. The bonds were…

A: Adjusting entries are made in company's general ledger to record any unrecognized income or expenses…

Q: On April 1, 2020, Boston Company issued at 99 plus accrued interest 2,000 of 8% P1,000 face value…

A: A bond is said to be issued at discount when its price is less than its face value. On the other…

Q: Rombus corp issued P600,000, 9%, 20-year bonds on January 1, 2020, at P103. Interest is payable…

A: Each transactions needs to be recorded in the books of accounts. Journal entries are basic…

Q: On January 1, 2021, Luyang Company issued 3-year bonds with face amount of P5,000,000 at 98.…

A: Bonds payable is a liability account that holds the amount that the issuer owes to bondholders.…

Q: On January 02, 2020, ABC Company issued its 9% bonds in the face amount of P4,000,000 which mature…

A: solution given Face value 4000000 Issue price 3756000 Market rate of interest 10%…

Q: On March 1, 2021, Brown-Ferring Corporation issued $100.0 million of 15% bonds, dated January 1,…

A: Accrued Interest- In accounting, accrued interest refers to the sum of interest that has been…

Q: 4. On January 1, 2018, LJ Company issued 9% bonds in face amount of P8,000,000, which mature on…

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

Q: 3. Terry Company is authorized to issue P5,000,000 of 6%, 10- year bonds dated July 1, 2011 with…

A: Face value of bond: P5,000,000 Cash received by the company: P5,150,000 Interest rate: 6% Discount…

Q: On September 1, 2021, ETC Company received P1,032,880 for P1,000,000 face amount, 12% bonds, a price…

A: If the issue price of a bond exceeds its face value then the bond is said to be issued at a premium.

Q: On October 1, 2010, EEE Inc. issued, at 101 plus accrued interest, 800 of its 10 percent, P1,000…

A: In the given case - P1000 Bonds are dated 1st July-2010. The bonds are issued on 1st October-2010…

Q: On January 1, 2019, SB Company issued its 10% bonds in the face amount of P10,000,000 that mature on…

A: Solution: Interest expense on July 1 = P9,160,000*12%*6/12 = P549,600 Semiannual interest paid =…

Q: Dixon Corp issued 5,000, 9%, 5-year, P1,000 bonds dated January 1, 2020, at P100 1. Prepare the…

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

Q: If the company issued RO 100,000 , 5% interest, 10-year bonds at 98 on January 1, 2021, which of the…

A: Answer Bond issued = RO98 Face value per BOND = RO100 Discount price per BOND = (RO100 - RO98) = RO2…

Q: On June 30, 2021, Arlington Company issued $2,100,000 of 10-year, 3% bonds, dated June 30, for…

A: The bonds are the financial instruments that are used to raise money from the market.

Q: On January 1, 2020, CAB Co. issued 9% bonds in the amount of P2,500,000, which mature on January 1,…

A: Interest payment on June 30, 2020 = Face value of bonds x rate of interest x 6/12 =2500000*9%*9/12 =…

Q: On May 1, 2021, Ligertwood Co. issued P5,000,000, 10%, three-year bonds to yield 8%. The bonds pay…

A: Bond is a debt security which carries a fixed interest rate. The fixed interest rate is known as…

Q: On January 1, 2021, Concord Corporation issued its 10% bonds in the face amount of $8070000, which…

A: Step 1: Compute the amount of interest expense: Interest expense=$9152978*8%=$732238 Step 2: Compute…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Solution: Computation of bond fair value Table values are based on: n= 2     i= 9.00%…

Q: On January 1, 2016, Truffle Corp. issued 9% bonds in the face amount of P 5,000,000, which maature…

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

Q: Lasa Corporation issued 5,000, 9%, 5-year, RM1,000 bonds dated January 1, 2020, at 100 (a) Prepare…

A: Journal entries are accounting transactions used to record various accounting transactions in the…

Q: QO Company issued P5,000,000, 12% bonds, on July 1, 2014 at 96. The bonds will mature on July 1,…

A: Face value of bonds P50,00,000 Amount Received July 1, 2014 (P5000000 * 96%) P48,00,000 Discount…

Q: On January 1, 2022 Company K issued $1,000,000, 5% bonds for $855,000. The market rate of interest…

A: One of the source used by the business organizations to meet their financial requirements is issue…

Q: On July 1, 2021, Sarah Company issued 4,000 8% bonds payable with P1,000 face amount for P3,504,000.…

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

Q: On July 1, 2020, Kwek-kwek Company issued 600 of its 10%, P1,000 bonds at 99 plus accrued interest.…

A: The bonds are issued at premium or discount depending on the market rate of interest of bonds.

Q: On July 1, 2022, bonds of P2,000,000 face amount were Interest on the bonds is payable semiannually…

A: The procedure of entering commercial transactions for the very first time in the books of accounts…

Q: Presented below are two independent situations. (a) Bramble Co. sold $1,930,000 of 12%, 10-year…

A: When bonds are issued at a price more than face value, then it means they are issued at a premium.

Q: Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest…

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

Q: (a) Novak Co. sold $2,080,000 of 12%, 10-year bonds at 105 on January 1, 2020. The bonds were dated…

A: Bond discount is the amount by which the selling price (or issue price or market price) of the bond…

Q: Cheese Stick Inc. issued a P5,000,000, 10%, 10-year bonds on July 1, 2020 for 113.6 when the…

A: Total bonds issue value = Face value of bonds x issue price/100 = P5,000,000 x 113.6/100 =…

Q: On January 2, 2021, YELLOW Co. issued 9% bonds in the amount of ₱1,000,000 which mature on January…

A: Solution: Bond Issue price = P939,000 Amount of interest expense for the year ended Dec 31, 2021 =…

Q: Question 8 : On January 1, 2019, Western Manufacturing Corporation issued $3,000,000, 10%, 5-year…

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

Q: n January 1, 2019, Mitsubishi Company issued its 9% P9,000,000 face value bonds, which matures on…

A: Solution: Discount on bond payable, Jan 1 , 2019 = face value - issue price  = 9000000 - 8451000 =…

Q: On January 2, 2020, Lucban Company issued 9% bonds in the amount of P10,000,000 which mature on…

A: Solution : Let us first note down the given information : Coupon rate of bond      =9% Market…

Q: d mature on December 31, 2031. ABC uses the effective interest method of amortizing bond discount.…

A: When bonds are issued a price less than its face value , there is a discount on bonds payable. The…

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: Bonita Industries issues $30900000 of 10-year, 7% bonds on March 1, 2020, at 96 plus accrued…

A: Bond prices are expressed as a percentage of par:- Price of 100 means that a bond costs 100 percent…

Q: Dixon Corp issued 5,000, 9%, 5-year, P1,000 bonds dated January 1, 2020, at P100 1. Prepare the…

A: Formula: Interest amount = Bond issued value x Interest rate

Q: Flounder Corp. issues 850, 10-year, 8%, $1000 bonds dated January 1, 2020, at 97. The journal entry…

A: A bond is a debt security, where an investor lends money to a company.

Q: Super Splash issues $910,000, 7% bonds on January 1, 2021, that mature in 10 years. The market…

A: The bonds are issued at premium when market rate is lower than the current yield.

Q: (a)Prepare the journal entry to record the sale of these bonds on January 1, 2022. (b)Prepare the…

A: