Hoover Corp., a wholesaler of music equipment, issued $16,700,000 of 15-year, 11% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. 20Y2   Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. 20Y4   Sept. 1 Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.) If an amount box does not require an entry, leave it blank. Journalize the entries to record the above selected transactions. Issued the bonds for cash at their face amount. 20Y2 Mar. 1 Cash  fill in the blank 63e826f4ffd705e_2 fill in the blank 63e826f4ffd705e_3   Bonds Payable  fill in the blank 63e826f4ffd705e_5 fill in the blank 63e826f4ffd705e_6   Feedback   Paid the interest on the bonds. 20Y2 Sept. 1 Interest Expense  fill in the blank 797adcff2069013_2 fill in the blank 797adcff2069013_3   Cash  fill in the blank 797adcff2069013_5 fill in the blank 797adcff2069013_6     Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.) 20Y4 Sept. 1 Bonds Payable  fill in the blank 98ec7cffffef078_2 fill in the blank 98ec7cffffef078_3   Loss on Redemption of Bonds  fill in the blank 98ec7cffffef078_5 fill in the blank 98ec7cffffef078_6   Cash  fill in the blank 98ec7cffffef078_8 fill in the blank 98ec7cffffef078_9

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

A: Prepare the journal entry to record the issuance of bonds at face amount on March 1.

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: On January 1, Elias Corporation issued 7% bonds with a face value of $94,000. The bonds are sold for…

A: Bonds will pay fixed amount of interest on face value of the bond on monthly/ quarterly/ half…

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

A:

Q: On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to…

A: When the bonds are issued at coupon rate lower than market rate, they are usually issued at…

Q: On November 1, 20x4, Madison Corp. issued ₱800,00 of its 10-year, 8% term bonds dated October 1,…

A: Bond interest rate is the total interest expense paid on an organization's bonds due over a…

Q: Rushton Corp., a wholesaler of music equipment, issued $15,710,000 of 20-year, 8% callable bonds on…

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

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, Elias Corporation issued 9% bonds with a face value of $88,000. The bonds are sold for…

A: Capital raising sources are: Issue of shares Issue of debt securities Raise funds from financial…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

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

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: The Levi Company issued $78,000 of 11% bonds on January 1 of the current year at face value. The…

A: Semi-annual interest=Face value of bonds×Coupon rate×6 months12 months

Q: On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued…

A: Hey, since there are multiple sub-parts are posted, we will answer first three sub-parts. If you…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries are used to record accounting transactions of the business and involves an debit in…

Q: On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market…

A: 1.

Q: Rushton Corp., a wholesaler of music equipment, issued $3,650,000 of 20-year, 14% callable bonds on…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that…

A: Requirement a:Prepare the journal entry to record issuance of the bonds.

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…

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A: Interest expense on sept 1, 20Y1 = face value of bonds x rate of interest x no. of months/12 =…

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A: Bonds are the method of raising finance for the business entity. It is considered as a cheaper…

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: On January 1, 20x1, Silent Co. issued 1,000 bonds with face amount of P4,000 each for a total of…

A: Interest expense for 20x1 =  ( issue value of bonds - transaction costs )x  effective interest rate…

Q: 20Y1   Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the…

A: Bonds are one way for companies to raise capital. A bond is a loan between an investor and a…

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

A: 1.Journalize the entries to record the transactions.

Q: a.  Journalize the entries to record the following: Issuance of the bonds. First semiannual…

A: Given: Price of the bond issued = $ 10,000,000 Rate of the bond = 7 % Interest rate = 8 % Cash…

Q: On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at pa…

A: Interest amount needs to be properly recorded in the books of the company as and when it was accrued…

Q: [The following information applies to the questions displayed below.] On April 1, year 1, Cricket…

A: Bonds are a form of debt or loan issued by the company. Business has to make regular interest…

Q: On July 1, 20Y1, Danzer Industries Inc. issued $37,400,000 of 10-year, 8% bonds at a market…

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

Q: On the first day of its fiscal year, Ebert Company issued $23,000,000 of 5-year, 8% bonds to finance…

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

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

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

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

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

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

A: Bonds: Bonds are securities issued by a company to raise money from the public. It is as good as…

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

A: Since, only the 2nd and 3rd requirement are mentioned they are answered. Bonds: Bonds are long-term…

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

A: Bonds: It is also known as a fixed-income security, which is a debt instrument created for the…

Q: Daan Corporation wholesales repair products to equipment manufacturers. On March 1, 2010, Daan…

A: The straight-line method of amortization represents the equal allotment of the premium or discount…

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

A: If the bonds were designated at fair value means then the carrying amount of the bonds is…

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

A: Bonds: It is also known as a fixed-income security, which is a debt instrument created for the…

Q: The Square Foot Grill, Inc. issued $230,000 of 10-year, 9 percent bonds on January 1, Year 2, at…

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

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

A: Answer - Calculations :  Interest Exp - 22000000*7%*1/2 = 770000

Q: On the first day of its fiscal year, Jacinto Company issued $14,700,000 of five-year, 8% bonds to…

A: As posted multiple sub-parts we are answering only first three-day sub-parts kindly repost the…

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: Luke Corp. issued $2,000,000 of 20-year, 9% callable bonds on July 1, Year 1, with interest payable…

A: From July 1 to December 31 = 6 months Interest expense has been accrued for 6 months in the month of…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries are used to record various transactions which was performed by the business during…

Q: On January 1 of the current year, the Barton Corporation issued 6% bonds with a face value of…

A: A bond is a borrowing security issued by a company to raise funds from the market by making an…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…

Conversion Cycle

Conversion cycle is also known as cash cycle or net operating cycle. Conversion cycle refers to how much time a company takes to turn its investments which is done from stock or any other financial resources into cash flows from sales.