Eddie industries issue 861000 of bonds at 102. The amount of cash received from the sale is

Q: If $917,000 of 11% bonds are issued at 102 1/2, The amount of cash received from the sale is:

A: Given that  bonds are issued at 102 1/2 11% bonds = $ 917000

Q: Hoover Corp., a wholesaler of music equipment, issued $3,690,000 of 20-year, 11% callable bonds on…

A: Semiannual interest payment = face value of bonds x interest rate x 6/12 = 3690000*11%*6/12 =…

Q: A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the amount…

A: the amount related to the bond issue : 1) Face amount is $26,000,000

Q: Five thousand bonds with a face value of $2000 each, are sold at 106. The entry to record the…

A: When bonds are issued at premium  the difference  between  face value and issue proceeds  is…

Q: On May 1, 2020, Ceylon Corporation sold $90,000 of its 15%, five-year bonds dated January 1, 2020,…

A: Interest accrued=Value of bonds×Rate×412=$90,000×15%×412=$4,500

Q: Bonds Payable has a balance of $1,137,000 and Discount on Bonds Payable has a balance of $13,644. If…

A: Bonds: Bonds is a long-term liability of a company where it has to repay the principal amount  along…

Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay…

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

Q: A company issues bonds with a face value of $5,000,000 and receives cash proceeds of $5,500,000 from…

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

Q: Cullumber Company purchased bonds with a face amount of $725000 between interest payment dates.…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: Korean Corporation issued $2 million, 10-year, 6% bonds on January 1, 2021.     1) Prepare the entry…

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

Q: On January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value). The…

A: At the time of issue of the bond, interest is not recorded. It is recorded when the amount becomes…

Q: Riverbed Corp issues 940, 10-year, 8%, $1000 bonds dated January 1, 2020, at 96. The journal entry…

A: Bonds are recognized as a financial instrument used to raise finance for the organization. It is…

Q: The Hayden Corporation issues 1,000, 10-year, 8%, $2,000 bonds dated January 1 at 92. The journal…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

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: If $434,000 of 10% bonds are issued at 94, the amount of cash received from the sale is a.$407,960…

A: Formulas: Cash received = Face value * Discount rate

Q: If $699,000 of 7% bonds are issued at 94, the amount of cash received from the sale is

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: Bonds Payable has a balance of $962,000 and Premium on Bonds Payable has a balance of $10,582. If…

A: A bond is basically an interest-bearing loan instrument that is issued by the companies in order to…

Q: Sealy Corporation issues 1,000, 10-year, 8%, $1,000 bonds dated January 1, 2021, at 97. The journal…

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

Q: If $317,000 of 10% bonds are issued at 96, the amount of cash received from the sale is a.$285,300…

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

Q: Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January I, 2022, at face value.…

A: A journal entry is being used to record a commercial transaction in the accounting records of a…

Q: On March 1, 2021 Lesley Company issued at 103 plus accrued interest 4,000 of 9% P1,000 face value…

A: Solution: Accrued interest on Bond = 4,000*P1,000*9%*2/12 = P60,000 Proceed from issue of bond =…

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: The difference between the par value received on bonds issued and the premium on bonds payable…

Q: If $4,000,000 of 12% bonds are issued at 103 1/4, the amount of cash received from the sale is:

A: Number of bonds=Par value of bondsPer share value=$4,000,000$100=40,000

Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…

A: Solution a: Journal Entries - Smiley Corporation Date Particulars Debit Credit 1-Apr-20Y1…

Q: If $323,000 of 10% bonds are issued at 96, the amount of cash received from the sale is a.$310,080…

A: please ,like the answer your response matters  Amount received from sale = $323,000 x 96%

Q: Journalize the redemption of the bonds

A: Redemption of bond means discharging the liability of bond by paying off it in cash or cash…

Q: Wildhorse Company purchased bonds with a face amount of $1225000 between interest payment dates.…

A: Bonds- A long-term debt under which a sum of money lends at a predetermined rate of interest, for a…

Q: Cullumber Company issued $400,000 of 5-year, 5% bonds at 95 on January 1, 2022. The bonds pay…

A: Cash received = Number of bonds×Issue Price=$400,000$100×$101=$404,000

Q: Five thousand bonds with a face value of $1000 each, are sold at 105. The entry to record the…

A: The par value of Bonds is $1000. But the bonds are issued at a 5% premium. Therefore, Par value of…

Q: On April 1, 2016, Lanz Company issued at 99 plus accrued interest, 200 of its 8%, P 1,000 bonds. The…

A: Bonds are the type of debt security issued by the company having a fixed percentage of coupon rate…

Q: Bonds Payable has a balance of $987,000 and Premium on Bonds Payable has a balance of $10,857. If…

A: If the bond is redeemed at 102, then its redeemed at a premium of 2% from its face value.

Q: If $325,000 of 9% bonds are issued at 96, what is the amount of cash received from the sale? Select…

A: Issued at 96 means that the bonds are issued at 96% of face value of bond.

Q: On March 1, 2006, Cain Company issued at 103 plus accrued interest 4,000 of its 9% P1,000 face value…

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

Q: Martinez Corp. issues 4800, 10-year, 8%, $1000 bonds dated January 1, 2020, at 103. The journal…

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

Q: The following are two independent situations. 1.   Sandhill Corporation redeemed $130,500 face…

A: Journal entry is a recording of a financial transaction of a business with debit and credit columns…

Q: On April 1, 2006, Naruto Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face…

A: A BOND IS A DEBT SECURITY WHICH BORROWERS ISSUE BONDS TO RAISE MONEY FROM INVESTORS WILLING TO LEND…

Q: Accounting Bonds Payable has a balance of $957,000 and Discount on Bonds Payable has a balance of…

A: Where Bonds are issued at a price lower than it's face value, there arises a discount/loss on issue.…

Q: The company Milly works for has issued $110,000, 9%, three-year bonds at 102. Milly has been asked…

A: Liabilities are the dues and obligations of the business that needs to be settled out. These can be…

Q: Bonds Payable has a balance of $5,000,000, and Discount on Bonds Payable has a balance of $150,000.…

A: Calculate gain or loss on the redemption of the bonds payable.

Q: Five thousand bonds with a face value of $2000 each, are sold at 112. The entry to record the…

A: Bonds are a form of loan taken by the company, on which business has to pay regular interests. When…

Q: Blue Spruce Corp. issues $310,000 of bonds for $325,500.     Prepare the journal entry to record the…

A: Bonds issue price = $325,500 Bonds face value = $310,000 Premium on bonds issue = Bonds issue price…

Q: Five thousand bonds with a face value of $2000 each, are sold at 89. The entry to record the…

A: Given: Face value of the bond = $ 2000 Price of the bond = $ 89

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: Bonds Payable has a balance of $909,000 and Premium on Bonds Payable has a balance of $9,999. If the…

A: Option d is the answer.

Q: On January 1, 2021, Sheffield Corporation issued $6400000, 10-year, 9% bonds at 103. Interest is…

A: Here issue proceeds =( $ 6400000/100 )×103 =$6592000

Q: Bonds Payable has a balance of $1,135,000 and Discount on Bonds Payable has a balance of $11,350. If…

A: The discount on bond is an expense for the issuer which denotes the lesser amount that the issuer…

Q: Five thousand bonds with a face value of $1000 each, are sold at 105. The entry to record the…

A: 5000 bonds having face value of $1000 issued at 105 which means that bonds are issued at  105% of…

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.

Debenture Valuation

A debenture is a private and long-term debt instrument issued by financial, non-financial institutions, governments, or corporations. A debenture is classified as a type of bond, where the instrument carries a fixed rate of interest, commonly known as the ‘coupon rate.’ Debentures are documented in an indenture, clearly specifying the type of debenture, the rate and method of interest computation, and maturity date.

Note Valuation

It is the process to determine the value or worth of an asset, liability, debt of the company. It can be determined by many processes or techniques. Many factors can impact the valuation of an asset, liability, or the company, like: