Confirm the bond issue price.

Q: Buffalo Corporation issues $590,000 of 9% bonds, due in 10 years, with interest payable…

A: Number of half years=10×2=20 half-years

Q: On January 1, 20x1, Faith Co. issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on…

A: Calculation of Interest: Particulars Amount (P) Cash Proceeds (Issue Price) 2,206,168 Less:…

Q: On the first day of the current fiscal year, $1,500,000 of 8%, 10-year bonds, with interest payable…

A: Journal entries are the initial reporting of the transactions in the books of an entity.

Q: On January 1, 20x1, Pitchfork Company issued a $750,000, 8%, 5-year bond for $860,401 and incurred…

A: GIVEN   On January 1, 20x1, Pitchfork Company issued a $750,000, 8%, 5-year bond for $860,401 and…

Q: On January 1, Remington Corp issued $500,000 of 15-year, 10% bonds payable, yielding an effective…

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 January 1, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. The bond interest is…

A: SOLUTION INTEREST EXPENSE TO BE RECOGNIZED FOR 6 MONTHS = BONDS BOOK VALUE AT THE BEGINNING OF THE…

Q: On January 1, Hurley Corporation issues $1,000,000, 5-year, 12% bonds at 96 with interest payable on…

A: Bonds are a form of debt taken by the company. When bonds are issued at a discount or premium, then…

Q: On January 1, $932,000, 5-year, 10% bonds, were issued for $904,040. Interest is paid semiannually…

A: Solution: Discount on issue of bond = $932,000 - $904,040 = $27,960 Nos of semiannual periods = 5*2…

Q: On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

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

Q: On April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bonds at a market interest…

A: a. Issuance of the bonds on April 1, Year 1: Date Accounts title and explanation Debit ($) Credit…

Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…

A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…

Q: On January 1 of the current year, Barton Corporation issued 7%, 5-year bonds with a face value of…

A: Annual Interest = $108,000 x 7% = $7,560 Bond discount = $108,000 - $102,600 = $5,400   This bond…

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

A: The correct option is option “d”.

Q: The Gorman Group issued $860,000 of 9% bonds on June 30, 2021, for $945,110. The bonds were dated on…

A: We have the following information of the Gorman Group: 9% $860,000 bonds issued for $945,110…

Q: On January 1, 20x1, Faith Co. Issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on…

A: Working note: Premium amortization schedule:

Q: The Gorman Group issued $810,000 of 11% bonds on June 30, 2021, for $879,498. The bonds were dated…

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

Q: Investco issued $30,000 of 6.25% bonds on January 1 at a discount of $2,107. Interest expense…

A: The book value of the bond is calculated by subtracting the unamortized discount from the face value…

Q: On July 1, 20Y1, Danzer Industries Inc. issued $50,000,000 of 10-year, 8% bonds at a market…

A: Definition:

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: Paulson Company issues 7%, four-year bonds, on January1 of this year, with a par value of $91,000…

A: Solution 1: Date Particulars Debit Credit 01-Jan Cash A/c Dr  $84,447     Discount on Bond…

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: Moss Co. issued $101,000 of five-year, 11% bonds with interest payable semiannually, at a market…

A: Concept: The present value (PV) is defined as the current value of the future sum of money or the…

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 November 1, 20x4, VICO Corp. issued P800,000 of its 10-year, 8% term bonds dated October 1, 20x4.…

A: Annual Interest=Issue price×Stated rate=P 800,000×8%=P 64,000

Q: Moss Co. issued $101,000 of five-year, 12% bonds with interest payable semiannually, at a market…

A: Given information:   issue price of the bonds $101,000 interest rate 12% effective interest…

Q: On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

A: Solution: S.no  Particulars Debit Credit (a)  Cash A/C Dr.  $1,225,000     Discount on bonds…

Q: the current year, Barton Corporation issued 11%, 5-year bonds with a face value of $112,000. The…

A: Bond Discount Amortization Using the Effective Interest Rate Method When a bond is sold at a…

Q: Nordbock Inc. reports the following outstanding bond issue on its December 31, 20Y1,balance sheet:…

A: Bond investment: Bond investments are debt securities which pay a fixed interest revenue to the…

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

A: Discount on bonds=$74,000,000-$63,532,267=$10,467,733

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: b. First interest payment on October 1, Year 1, and the amortization of bond premium for 2 months,…

A: Bonds:   Bonds are the financial debt instruments issued by the corporations to raise capital for…

Q: On January 1, 2009, Beta Company issued 5,000 of its 12%, P1,000 face value bonds for P5,600,000,…

A: Formula: Net amount received from the issuance of the bonds = Issue value of the bonds + Accrued…

Q: On the first day of the fiscal year, a company issues a $750,000, 7%, five-year bond that pays…

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

Q: Pieriniel, Inc., reports financial statements each December 31 and issues $600,000, 7%, 15-year…

A:

Q: Moss Co. issued $101,000 of four-year, 12% bonds with interest payable semiannually, at a market…

A: Present value of the bonds payable = Present value of principal + Present value of interest payments…

Q: On January 1 of the current year, Barton Corporation issued 10%, 5-year bonds with a face value of…

A: Discount on bonds payable = $200,000 - $191,000 Discount on bonds payable = $9,000   Number of…

Q: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000…

A: Given information is: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a…

Q: Franklin corporation issues $86,000, 10%, 5 year bonds on January 1st for $89,900. Interest paid…

A: When interest is paid semi-annually, rate would become half.

Q: Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a market…

A: Present Value: The value of today’s amount expected to be paid or received in the future at a…

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 6% bonds, with interest payable…

A: Given: Value of the bond = $ 2,000,000 Bond rate = 6 % Price of the bond = $ 2,125,000

Q: On the first day of the fiscal year, a company issues an $609,000, 10%, five-year bond that pays…

A: Record the first interest payment and amortization on Discount on payable

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 Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,080 for $132,600. The…

A: Bonds are issued to fulfil the requirement of the capital of the company. It represents the…

Q: On the first day of the fiscal year, a company issues a $3,200,000, 6%, 5-year bond that pays…

A: Bond :— Bond is a type of security which is issued to the party for the purpose of Enhance of…