Bonds with a face value of P5.0 million, carrying a stated interest rate of 12%; payable semiannually on March 1 and September 1, were issued on July 1. The total proceeds from the issue amounted to P5,200,000. The best explanation for the excess amount received over face value is that      a. the bonds were sold at a premium.

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 March 1, 2X19, Toyota Corporation issued at 103 plus accrued interest, 500 of its 9%, P500 bonds.…

A: Issuing bonds is one of the many ways for companies to raise money or funds. A bond works as a loan…

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: On January 1, 2011, Taguig Company issued 3-year bonds with face value of P5,000,000 at 99. The…

A:

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 1 January 2008, Gomez & Co. issued its 10% bonds in the face amount of P4,000,000, which mature…

A: Amortization of bond premium = Interest payment - Interest expense where, Interest expense =…

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

A: Requirement 1:   Compute the amount of liability.

Q: of 6% were sold at par value. The bonds were dated January 1, 20x6. Interest will be paid twice a…

A: The company issues bonds for the expansion of capital investment. The bonds were for a long period.…

Q: Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call…

A: The Journal entry will be passed as follows on 30 Sept

Q: Medhurst Corporation issued $87,594 in bonds for $98,782. The bonds had a stated rate of 2% and pay…

A: Interest payment = Face value of bonds*2%*3/12

Q: On November 1, 20x4, Madison Corp. issued ₱800,00 of its 10-year, 8% term bonds dated October 1,…

A: Bond interest rate is the total interest expense paid on an organization's bonds due over a…

Q: On January 1, 2018, Parker Company issued bonds with a face value of $63,000, a stated rate of…

A: Amortization means decrease in the amount of debt over a period of time by paying some amount…

Q: Bonds with a face value of P5,000,000 carrying a stated interest rate of 12% payable semi- annually…

A: Face value of bonds = P5,000,000 Proceeds from bonds = P5,200,000 Proceeds from bonds > Face…

Q: On January 1, Elias Corporation issued 10% bonds with a face value of $67,000. The bonds are sold…

A: Discount on bonds = Face value of bonds - Issue price of bonds = $67,000 - $64,990 = $2,010…

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 January 1, Elias Corporation issued 8% bonds with a face value of $74,000. The bonds are sold for…

A: Interest expense 1st year= face value *8% = $74, 000 *8% =$5920

Q: Pinetop Corporation issued $153,000 of 12-year bonds at par. The bonds have a stated rate of 5% and…

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

Q: The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period:…

A: (a)The bonds were issued at premium.The bonds were issued at high price ($2,125,000) than the face…

Q: Medhurst Corporation issued $86,722 in bonds for $94,389. The bonds had a stated rate of 8% and pay…

A: The quarterly payment on the bond is calculated on the face value of the bonds at the stated rate…

Q: On January 1, 2011, Boyle Company issued 9% bonds in the face amount of P5,000,000 which mature on…

A: Answer) Calculation of Selling Price of Bonds Face Value of Bonds = P 5,000,000 Annual Coupon rate =…

Q: onds pay interest semiannually on June 30 and December 31. If the bonds are retired at the end of…

A: Amortization of bonds refers to the process in which the carrying value of the bond is adjusted with…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $46,500 face value, a stated rate of…

A: Straight line method  amortization= Premium or discount/ number of period bond is outstanding.…

Q: On January 1, 2018, Parker Company issued bonds with a face value of $63,000, a stated rate of…

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

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

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

Q: On January 1, 2008, P5,000,000, 5-year, 10% bonds, were issued for P4,850,000. Interest is paid…

A: Bonds are form of debt or loan that is being issued by the business, on which regular interest…

Q: On January 1, 2006, Naruto Company issued its 9% bonds in face amount of P4,000,000, which mature on…

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

Q: What is the entry to record the first semiannual interest payment, and the amortization of the bond…

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

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, 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 January 1 of Year 1, Congo Express Airways issued $2,500,000 of 5% bonds that pay interest…

A: Bonds Payable: They are financial instruments representing the company's commitment to pay back a…

Q: On January 1 of Year 1, Congo Express Airways issued $2,250,000 of 5% bonds that pay interest…

A: SOLUTION- Bonds refers to the debt instrument issued by a corporate company to raise funds. It is an…

Q: Company E issues $300,000 worth of 7.5% bonds on January 1, 20x2, which will mature on December 31,…

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

Q: On the first interest date, using the effective-interest method, the debit entry to Interest Expense…

A: Given information is: On January 1, Vaughn Manufacturing issued $4300000, 7%, 5-year bonds with…

Q: The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:…

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

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Bonds: Bonds are securities issued by a company to raise money from the public. It is as good as…

Q: On January 1, 2018, Parker Company issued bonds with a face value of $63,000, a stated rate of…

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

Q: The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:…

A: Since, only the 2nd and 3rd requirement are mentioned they are answered. Bonds: Bonds are long-term…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

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

Q: On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The…

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

Q: When the market rate of interest was 11%, Christopher Corporation issued $100,000 of five-year, 12%…

A: The Selling price of the bond will be Present Value of the Interest Amount to be Received for…

Q: On July 1, 2000, Car issued 9% bonds in the face amount of P1,000,000, which mature on July 1, 2010.…

A: Annual interest payment = Face value of bonds x rate of interest x no. of months/12 = P1,000,000 x…

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, 2006, Taguig Company issued 3-year bonds with face value of P5,000,000 at 99.  The…

A: Q1 Effective Interest Rate. The discounting rate at which the present value of cash flows equal to…

Q: On July 1, 2018, Mason & Beech Services issued $33,000 of 10% bonds that mature in five years. They…

A: Interest payable on the bond is the amount payable on the bond by the bondholder at the coupon rate,…