Issuance of Long-Term Debt M. Nickles Company issued $1,500,000 of bonds for $1,487,200. Interest is paid semiannually. Required:   Hide     1.  Prepare the necessary journal entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.               Journal       Account and Explanation Debit Credit                           Record issuance of bond at discount                 2.  Is the yield greater or less than the stated rate?SelectGreaterLessCorrect 1 of Item 2 How do you know? The input in the box below will not be graded, but may be reviewed and considered by your instructor.

Q: Favreau Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1,…

A: Market / Effective rate : 11% p.a. or 5.5% semi-annually Term of bond = 7 Years Semi-annual interest…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $7,800,000, 8%,…

A: Discount = Face value - Cash Discount = $7,800,000 - $6,791,633 Discount = $1,008,367

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,800,000, 6%,…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: On the first day of the fiscal year, a company issues a $5,100,000, 12%, 6-year bond that pays…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,500,000,…

A: Bonds: To raise the funds and finance the operations of the company, money is borrowed from the…

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: 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: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…

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

Q: Darien Inc. redeemed $20,000 of its bonds at 102 on January 1. At this date, the unamortized…

A: Cash on bonds is   20000 × 1.02 = 20400 the unamortized discount was $2,760. Loss on redemption is $…

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: Discount Amortization On the first day of the fiscal year, a company issues a $4,600,000, 8%,…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: On January 1, the first day of the fiscal year, a company issues a $2,400,000, 4%, five-year bond…

A: Annual Interest=2,400,000×4%=96,000

Q: Discount Amortization On January 1, the first day of the fiscal year, a company issues a…

A: Discount on Bonds Payable = ($1,550,000 – $1,503,140) × ½ = $23,430

Q: Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a…

A: Journal entries is recording the of the transaction in the accounting journal in a chronological…

Q: The first day of the fiscal year, a company issues a $700,000, 6%, 10-year bond that pays semiannual…

A: Bonds are issued by the company because it is it cheaper source of finance. It is because tax…

Q: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…

A: Journal entries are used to record entries in chronological order for a business.

Q: Adcock Company issued $276,000, 8%, 20-year bonds on January 1, 2015, at 105. Interest is payable…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Issuing Bonds at a Discount On January 1, the first day of the fiscal year, a company issues a…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: Gridley Company issued $988,000, 12%, 10-year bonds on December 31, 2014, for $928,720. Interest is…

A: Discount on bonds payable = Face value of bonds issued - selling price ofBonds  = $988,000 -…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,700,000, 6%,…

A: Journal entry to record the issuance of bonds: Date Account Titles Debit ($) Credit ($) xxx…

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

A: Bonds are issued by the companies to get the financial resources for working. It is a cheaper source…

Q: Issuance of Long-Term Debt Anne Corp. issued $366,000, 5% bonds. Required: Provide the necessary…

A:

Q: On September 1, Deutsch Limited issues 8%, 5-year bonds payable with a maturity value of OR 20,000.…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: On July 1, a company issues a $1,000,000, 7%, five-year bond that pays semiannual interest of…

A: The discount on issue of bond is amortized over the life of the bond When the same amount of bond…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,200,000, 9%,…

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

Q: ond discount, entries for bonds payable transactions, interest method of amortizing bond discountOn…

A: (1).     Date Account Titles Debit Credit Jul. 1 Cash $ 16,661,102   Year 1 Discount on…

Q: On the first day of the fiscal year, a company issues a $4,500,000, 10%, 9-year bond that pays…

A: Here in this question, we are required make entry for bond issued at discount. Bond is knowing to be…

Q: Issuing bonds at a discountOn the first day of the fiscal year, a company issues a $3,500,000, 6%…

A: Premium (discount) on bonds issue =   Issue value - face value of bonds = $3,350,000 - $3,500,000 =…

Q: On January 1, a company issued and sold a $391,000, 7%, 10-year bond payable, and received proceeds…

A: Lets start with basic understanding. When bond is issued for less than its face value then it is…

Q: On January 1, the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond…

A: Amortization method is specifically mentioned in the question. Also market interest rate is not…

Q: ssuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,700,000, 9%,…

A:

Q: Pharoah Inc. issues $4,500,000, 5-year, 14% bonds at 104, with interest payable annually on January…

A: An account title is essential when the accounting staff needs to identify an account, since the…

Q: Journalize the bond issuance. If an amount box does not require an entry,

A: Pass necessary journal.

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,800,000, 11%,…

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

Q: a)  Journalize the entry to record the issuance of the bonds. If an amount box does not require an…

A: Bonds are the loan issued by Companies.

Q: Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $8,700,000, 7%,…

A: Bonds are issued at premium when the issue price of the bond is more than the face value of the…

Q: Based on Question No. 1, I want answer of Question No. 2    On September 1, Deutsch Limited issues…

A: Definition:   Liabilities:  Liabilities are an obligation of the business to pay to the creditors in…

Q: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…

A: Journal Entry is Record of a transaction in accounting system of Company

Q: On the first day of the fiscal year, a company issues a $1,900,000, 10%, 9-year bond that pays…

A: A bond is referred to as a financial instrument that a company issues to meet its financial…

Q: Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a…

A:

Q: isiructions On January 1, the first day of the fiscal year, a company issues an S8,600,000, 11%,…

A: bond is an instrument of indebtedness of the bond issuer to the holders.   Please refer the step 2…

Q: Issuing Bonds at a Premium On January 1, the first day of the fiscal year, a company issues an…

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

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: On January 1, Year 1, Price Company issued $291,000 of five-year, 5 percent bonds at 98. Interest is…

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

Q: Bond Discount, Entries for Bonds Payable Transactions On July 1, 20Y1, Livingston Corporation, a…

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

Q: Issuing Bonds at a Premium On the first day of the fiscal year, a company issues an $4,900,000, 6%,…

A: Premium on bonds payable = Cash received - bonds face value             = 5,258,948 - 4,900,000…