Discount Amortization On the first day of the fiscal year, a company issues a $4,600,000, 8%, 8-year bond that pays semiannual interest of $184,000 ($4,600,000 × 8% × ½), receiving cash of $3,878,112. Journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Q: On the first day of its fiscal year, Ebert Company issued $20,000,000 of 5-year, 11% bonds to…

A: The interest method is the accounting standard which is used for discounting or amortizing the bond…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $4,400,000, 7%, 8-year…

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

Q: Discount AmortizationOn the first day of the fiscal year, a company issues a $6,700,000, 12%, 4-year…

A: Calculate the amount of discount provided on issue of bonds as follows:

Q: On the first day of the fiscal year, a company issues a $968,000, 8%, 10-year bond that pays…

A: Working Note: Total premium on Bonds = Issue value - Face value of the bonds = $1,016,400 - 968,000…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $1,900,000, 8%, 4-year…

A: Since interest payments will be made on semiannual  5 years × 2 = 10 payments to be made 8% / 2 = 4%…

Q: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $415,000, 7%, 10-year bond that pays…

A: Premium on Bond Payable = $435,800 - $415,000 = $20,800   Interest is paid semiannually for 10…

Q: Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued…

A: Amortize Discount by Interest Method is a method used to discount a bond. Discount of the bond sold…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $1,800,000, 11%, 8-year…

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

Q: On the first day of the fiscal year, a company issues a $8,600,000, 11%, 10-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $874,000, 9%, 10-year bond that pays…

A: A record is often kept in the general ledger, but it can also be kept in a single account,…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $4,500,000, 7%, 6-year…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,300,000, 10%,…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: Yale Corporation issued to Zap Corporation $60,000, 8% (cash interest payable semiannually on June…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $6,700,000, 12%,…

A: Step 1: Calculate the amount of discount provided on issuance of bonds:

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%,…

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

Q: On the first day of the fiscal year, a company issues a $967,000, 8%, 10-year bond that pays…

A: A journal entry is used to record a business transaction in an organization's accounting records. A…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $1,500,000, 9%, 6-year…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $4,200,000, 10%,…

A:

Q: On the first day of the fiscal year, a company issues a $8,600,000, 10%, 6-year bond that pays…

A: Since, the bond have been issued at a price more than the face value, they have been issued at a…

Q: On the first day of the fiscal year, a company issues a $7,500,000, 9%, 9-year bond that pays…

A: Discount on bonds issue = Face value of bonds - issue value = 7500000-7061640 = $438,360

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,900,000, 8%,…

A: Discount amortization on bond: Bond discount amortization is the process of writing off a bond's…

Q: On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays…

A: When bonds are issued at Premium then with each payment part of the premium balance is Amortize with…

Q: Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued…

A: Bonds: Bond is a long-term financial instrument issued by a company for which the company pays…

Q: On January 2, Year 1, Kampai Sushi Bar sold $800,000 of bonds for $785,000. The bonds will mature in…

A: Since the bond is sold for lesser amount and the bond will mature in 10 years, each year the amount…

Q: ay of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest…

A: Solution: Semiannual interest amount = $800,000*6%*6/12 = $24,000 Discount amortization = ($800,000…

Q: On the first day of its fiscal year, Ebert Company issued $16,000,000 of 5-year, 10% bonds to…

A: Under the effective interest rate method, the interest expense of the year is computed by…

Q: On the first day of the fiscal year, a company issues a $883,000, 10%, 10-year bond that pays…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%,…

A:

Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…

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

Q: Premium Amortization On the first day of the fiscal year, a company issues a $5,300,000, 8%,…

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

Q: On the first day of the fiscal year, a company issues a $674,000, 7%, 10-year bond that pays…

A:

Q: On the first day of the fiscal year, a company issues a $9,000,000, 11%, 7-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays…

A: Working note:   Premium on issue $1,004,900 – 957,000 $47,900 Semi-annual period 10×2…

Q: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…

A: Accounts title Debit Credit Interest Expense $55,775   Premium on Bonds Payable $2,425…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,600,000, 10%,…

A:

Q: Premium Amortization On the first day of the fiscal year, a company issues a $6,600,000, 11%, 8-year…

A: Premium on bonds payable: It occurs when the bonds are issued at a higher price than the face value.…

Q: Yale Corporation issued to Zap Corporation $120,000, 8% (cash interest payable semiannually on June…

A: A journal entry is a record of the a financial contract in the accounting system of a company.…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $9,000,000, 9%, 8-year…

A: Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.…

Q: On the first day of the fiscal year, a company issues a $676,000, 11%, 10-year bond that pays…

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

Q: Premium Amortization On the first day of the fiscal year, a company issues an $8,000,000, 11%,…

A: Solution: Journal entry for Issuance of Bonds Date Particulars Debit Credit   Cash A/c…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $1,700,000, 9%,…

A: The following transaction is journalized to record the first-year interest expense on bonds.

Q: On the first day of the fiscal year, a company issues a $5,100,000, 8%, 5-year bond that pays…

A: Total Premium on bonds = Issue price - Face value of bonds = $5,312,072 -  $5,100,000 = $212,072

Q: Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $4,600,000, 7%, 6-year…

A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.

Q: Premium Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%, 9-year…

A: When bonds in the business are sold at a value more than its face value, then it means bonds are…

Q: A company issues $50,000 of 5%, 10-year bonds dated January 1 and pay interest semiannually on June…

A: Discount = Issued amount - Sold Value Discount = $50,000 - $48,000 Discount = $2,000 Semiannual…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,900,000, 9%,…

A: The below journal entries are passed to calculate the expenses incurred on interest payments on…