Computation of Effective Interest Rate On June 30, 2019, Gaston Corporation sold $890,000 of 9% face value bonds for $843,810.43. On December 31, 2019, Gaston sold $480,000 of this same bond issue for $505,351.46. The bonds were dated January 1, 2019, pay interest semiannually on

Q: July 1, 2019, Jelli&Tin Company purchased P500,00 face value Red Cup Company 8% bonds for P455,000…

A: SOLUTION LOSS ON SALE ON SECURITY IN 2020 = ACCRUED INTEREST UPTO FEB 1 2020 Is 1.5 MONTHS. =…

Q: Please include solutions!   On June 1, 2019, YODA CORP. acquired a 5-year, 10%, P1,000,000 face…

A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…

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

A:

Q: On January 1, 2020, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for…

A: a) Journal entry at the date of the bond purchase is follows:

Q: Flounder Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: Since there are multiple questions asked, answer will be given for first question only, to get other…

Q: On January 1, 2019, Learned Inc. issued $105 million face amount of 20-year, 14% stated rate bonds…

A: Proceeds (Issue price) of bonds=Present value of semiannual interest payment+Present value of…

Q: Prepare a bond interest expense and premium amortization schedule using the straight-line method. 2.…

A: Under the Straight line method, a Bond premium or discount is amortized equally over the bond term…

Q: On January 1, 2019, REP Company purchased serial bonds with face amount of P5,000,000 and stated…

A: Total no. of installments = Total face amount / annual installment = P5,000,000 / 1,250,000  = 4

Q: Marin Co. sells $467,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: Titania Co. sells $400,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and…

A: Journal entries

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: 12% bonds[Financial Asset @FVTPL]…

Q: f each year. Aumont Company allocates interest and unamortized discount or premium on the…

A: c.   journal entry to record the interest payment and the amortization for 2017 Date Account…

Q: View Policies Show Attempt History Current Attempt in Progress On January 1, 2020, Teal Company sold…

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

Q: On January 1, 2020, Kingbird, Inc. purchased 11% bonds having a maturity value of $541,000 for…

A: The following journal entries are passed to show the investment in bonds.

Q: Teal Mountain Incorporated issued $0.62 million of 6.5%, 10-year bonds on July 1, 2019, at face…

A: Under ASPE, the bond payable is recorded at the face value and the interest is computed by applying…

Q: Headland Co. sells $497,000 of 8% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A:

Q: Sanford Co. sells $500,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and…

A: JOURNAL ENTRIES

Q: On June 30, 2019, Gaston Corporation sold $690,000 of 9% face value bonds for $654,190.11. On…

A: YTM can be calculated using the function Rate in the MS-excel.

Q: Gordon Corporation issued $200,000 par value, 4%, 5 year bonds on January 1, 2019. The bonds mature…

A: 1. Calculation of present value of bond and interest Bond value= $ 200000 Time = 5years ( semi…

Q: On January 1, 2020, Metlock Company acquires $110,000 of Spiderman Products, Inc., 9% bonds at a…

A: The question is based on the concept of Financial Accounting.

Q: pare a schedule of interest expense and bond amortization for 2020–2022.

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

Q: On January 1, 2020, Oriole Company purchased 6% bonds, having a maturity value of $620,000 for…

A: Solution A Bond represents a loan to company or government in return of this company pay a fixed…

Q: On January 1, 2021, Braburt Co. sold six-year, 5% bonds with a face value of $700,000. Interest is…

A: Introduction:- A bond is a document of the bond issuer's obligation to the bondholders. Municipal…

Q: On January 1, 2020, Metlock Company acquires $ 110,000 of Spiderman Products, Inc.,  9% bonds at a…

A:

Q: Titania Co. sells $400,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and…

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

Q: On December 31, 2020, Whitfield Corp. issued $ 400,000 10% bonds, due on December 31, 2025. Interest…

A: Maturity period = December 31, 2020 to December 31, 2025 = 5 years Semi annual period = 5 years x 2…

Q: On January 1, 2020, Barbie Company purchased 4,000 of $1,000 face value, 10% bonds of Ken Company…

A: Bond: It is long-term source of finance issued by the firm to raise money. It has a fixed maturity…

Q: On January 1, 2020, Windsor Company purchased 10% bonds having a maturity value of $340,000, for…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: n January 1, 2020 Paradox Company purchased 9% bonds with a face amount of P4,000,000 for P3,756,000…

A: Solution: Bond Amortization Schedule Period Cash Paid Interest Expense Discoount Amortized…

Q: On January 1, 2019, Calvert Company issues 10%, $100,000 face value bonds for $103,629.90, a price…

A: Definition:

Q: On January 1,2019, DELO Company purchased 456B Corporation, 9% bonds with a face value of P4,000,000…

A: Interest revenue is the amount of interest that an entity might have earned during a period.

Q: On June 30, 2020, Ivanhoe Company issued $4,420,000 face value of 15%, 20-year bonds at $5,417,560,…

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

Q: Indigo Co. sells $425,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and…

A: Bond is an instrument which helps the entity in getting money from public or from some other private…

Q: Fountain Limited sells $300,000 of 10% bonds on March 1,2020. The bonds pay interest on September 1…

A: Total Coupon Payment = $ 300,000 x 10% x 612 = $ 15,000 Interest Expense - September 2020 = $…

Q: At the beginning of this year, MM purchased P6,000,000, 9% face amount bonds. The interest is…

A: Bond interest : P 6,000,000 x 0.09 = P 540,000 per year Every year the total payment of Bond…

Q: of each year. Riverbed Company uses the effective-interest method to allocate unamortized discount…

A: The values and bonds are given as, 2020   $ 303,400   2023   $ 293,200 2021   $ 292,200…

Q: Current Attempt in Progress On January 1, 2020, Teal Company sold 11% bonds having a maturity value…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Current Attempt in Progress On January 1, 2021, Vaughn Corp. purchased $1,740,000 of 6-year, 3%…

A: An amortised bond is one where the debt's principal (face value) and interest expense are paid down…

Q: On January 1, 2020, Sandhill Company purchased 12% bonds, having a maturity value of $325,000 for…

A: ) Date General Journal Debit Credit   Jan. 1, 2020 Debt investments 349,639.81       Cash…

Q: Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.…

A: Solution:- Preparation of journal entry as follows under:- Working notes:- Interest Revenue for 2020…

Q: On January 1, 2018, HI company purchased P1,000,000, 12% bonds for P1,063,394, a price that yields…

A: Lets understand the basics. When debt investment purchased and designated at FVTPL then interest…

Q: On January 1, 2020, Metlock Company acquires $110,000 of Spiderman Products, Inc., 9% bonds at a…

A: Discount = Face value of bonds - Amount received = $110000-99611 = $10389 Cash received= Face value…

Q: How much should be the 2021 gain or loss on the sale of the investment?

A: Gain or loss due to the sale of the bonds which has been held by the bond investor depends upon the…

Q: On January 1, 2019, Ron Company purchased 12% bonds with face amount of P5,000,000 for P5,380,000…

A: Face value of bond=5,000,000  Rate of interest=12% Interest Income = Rate of Interest * Face Value…

Q: On July 1, 2019, Pen Co. issued 4,000 of its 8%, P1,000 face value bonds payable for P3,504,000. The…

A: Introduction: Bonds discount: When bonds are issued at less than its face value called bonds…

Q: On June 30, 2020, Wayne's Company issued $4,000,000 face value of 13%, 20-year bonds at $4,300,920,…

A: Given: 13% Face value = $4,000,000 Interest = 12% Years = 20

Q: On January 1, 2020, Pronghorn Company acquires $270,000 of Spiderman Products, Inc., 9% bonds at a…

A:

Q: On June 30, 2019, King Company had outstanding 9%, P5,000,000 face value bonds maturing on June 30,…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

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

A: