Federer Corporation issued $540,000 in bonds for $498,600. The bonds had a stated rate of 12% and pay interest quarterly. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable PLEASE NOTE: For accounts having similar accounting treatment (DR or CR), you are to record accounts in the same order as shown in the textbook. You must enter the account names exactly as written above and all whole dollar amounts will be with "$" and commas as needed (i.e. $12,345). What is the journal entry to record the issuance of the bonds?   DR     DR/CR ?      CR       What is the journal entry to record the first interest payment? (Note: Do not consider the premium or discount.)   DR     CR

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: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay…

A: Bonds are a form of debt or loan taken by the company and interest needs to be paid on bonds on…

Q: Hoover Corp., a wholesaler of music equipment, issued $17,850,000 of 25-year, 10% callable bonds on…

A: Answer -    The journal entry for bond issuance varies depends on the type of issuance; whether it…

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

A: Formula used for calculating discount on bonds payable: Discount on bonds payable = issued price -…

Q: Baron, Inc., issued $100,000 of its 8%, five-year bonds on January 1, 2016, at 98. Interest is paid…

A: Given, Jan 01, 2016 8% 5 year Bonds issued @ discount ($98) Face value = $ 100000   April 01, 2018…

Q: On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays…

A: Solution: Discount on issue of bond = Face value - Issue price = $946,000 - $889,240 = $56,760…

Q: Federer Corporation issued $540,000 in bonds for $498,600. The bonds had a stated rate of 12% and…

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

Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued…

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

Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…

A: 1. Compute amount of bonds report in its balance sheet as shown below:     Working note:   Compute…

Q: Medhurst Corporation issued $86,000 in bonds for $83,400. The bonds had a stated rate of 8% and pay…

A: Interest expense is a non-operating expense shown on the income statement. It represents interest…

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $910 for $94,800. The bonds…

A: Bonds payable (at par) = 100 bonds * $910= $ 91000 Bond issued value= $ 94800 Premium on bond issue=…

Q: On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that pay interest…

A: Calculation of Amount of Bond Discount:The bond premium is $10,087 for six months. The bond premium…

Q: Hoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on…

A: Interest expense = Face value of bonds x rate of interest x no. of month/12 = $32,700,000 x 6% x…

Q: On Jan. 1, Year 1, Nadal Inc. issued 100 bonds with a face value of $1,000 each for $103,500. The…

A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…

Q: Liab. + Equity Rev. − Exp. = Net Inc. A. NA = NA

A: If company bonds mature, then the cash and bond liability decrease by 50000. In statement cash flow…

Q: Medhurst Corporation issued $89,200 in bonds for $86,000. The bonds had a stated rate of 5% and pay…

A: The bonds are issued on discount when market rate is greater than the stated rate of interest.

Q: On January 1, 2018, Technicians Credit Union (TCU) issued 5%, 20-year bonds payable with face value…

A: Premium on Bonds Payable = Face value of Bonds - Issue price = $100000 - $100000*106% = $6000

Q: On Jan. 1, Year 1, Nadal Inc. issued 100 bonds with a face value of $1,000 each for $103,500. The…

A: In the given case, Nadal Inc issued 100 bonds with a face value of $1000 each at a premium of $35.…

Q: On the first day of the fiscal year, a company issues an $2,250,000, 9%, five-year bond that pays…

A: Premium on Bonds Payable = Issue value of bonds - face value of bonds = $2,379,570 - $2,250,000 =…

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 the first day of its fiscal year, Ebert Company issued $12,500,000 of 10-year, 7% bonds to…

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

Q: On March 1, 2021, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A: 1. Determine the amount(s) related to the bonds Baddour would report in its balance sheet at…

Q: much should be recorded for Discount (or Premium) on Bonds Payable? (Enter an amount. Please do not…

A: Journal: Journal is considered as a book of original entry because all the transactions that have…

Q: For each of the following three examples, provide the journal entry that the company would make on…

A: Issue price of the bonds = Present value of principal + Present value of interest payments = (Face…

Q: Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on…

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

Q: On November 1, 2006, Mason Company issued P8,000,000 of its 10-year, 8% term bonds dated October 1,…

A: Bonds are a form of liability being issued by the business, which needs to be paid out by the…

Q: Madison Company issued an interest-bearing note payable with a face amount of $25,800 and a stated…

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

Q: Hoover Corp., a wholesaler of music equipment, issued $16,700,000 of 15-year, 11% callable bonds on…

A: Bonds are kind of loan on which interest is paid and redeemed after certain period of time.

Q: On March 1, 2021, FLAXSEED Inc. issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000…

A: Bonds are a form of debt or loan that is issued by the corporation, on which interest needs to be…

Q: On March 1, 2016, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A: 1.Working notes:

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $920 for $95,800. The bonds…

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

Q: On January 1, a company issued and sold a $400,000, 7%, 10-year bond payable, and received proceeds…

A: Interest expense = Interest on Bonds + Discount on bonds payable amortized = ($400,000 x 7% x 6/12)…

Q: Blossom Company issued $510,000 of 5-year, 9% bonds at 96 on January 1, 2022. The bonds pay interest…

A: Long-term debt is represented by bonds. When a corporation pays a lower interest rate than the…

Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…

A: Bond issuance: It is the way the company raises money. It is a type of loan between the investor and…

Q: On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $6,600,000…

A: Answer 1:   Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: Hoover Corp., a wholesaler of music equipment, issued $11,200,000 of 20-year, 9% callable bonds on…

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

Q: Hoover Corp., a wholesaler of music equipment, issued $29,700,000 of 20-year, 6% callable bonds on…

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

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 90 bonds with a face value of $1,060 for $99,400. The bonds…

A: Solution: journal entry to record the first payment to the bondholders is as  under:

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 110 bonds with a face value of $990 for $112,200. The bonds…

A: Interest is paid to the bondholders on the basis of coupon rate mentioned on the bond document…

Q: A company sold a $1,000,000 issue of bonds with a 15-year life, paying 4% interest per year. The…

A: Bond is a fixed income-based instrument, which contains low amount of risk. Organization issues…

Q: On January 1, the first day of its fiscal year, Jacinto Company issued $18,400,000 of five-year, 12%…

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

Q: On the first day of its fiscal year, Ebert Company issued $25,000,000 of 5-year, 9% bonds to finance…

A: Solution a:       Journal Entries - Ebert Company Date Particulars Debit Credit Jan 1, Year 1…

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: Hoover Corp., a wholesaler of music equipment, issued $11,200,000 of 20-year, 9% callable bonds on…

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

Q: Wildhorse Corporation issued $410,000 of 10-year bonds at a discount. Prior to maturity, when the…

A: Solution: Face value of bond= $410,000 Carrying value of bond prior to redemption = $379,250…

Q: On January 1, Innovative Solutions, Inc., issued $110,000 in bonds at face value. The bonds have a…

A: Preapre the journal entry to record the issuance of the bonds: