ive thousand bonds with a face value of $2000 each, are sold at 93. The entry to record the issuance is
Q: On January 1, DDD issued ten-year bonds with a face amount of P1,000,000 and a stated interest rate…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: The following three companies issued the following bonds: 1. Carr, Inc. issued $100,000 of 8%,…
A: Using straight line amortization, the premium or discount on bonds payable is amortized equally for…
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 March 1, 2X19, Toyota Corporation issued at 103 plus accrued interest, 500 of its 9%, P500 bonds.…
A: Issuing bonds is one of the many ways for companies to raise money or funds. A bond works as a loan…
Q: Issuance of the bond First annual interest payment (record as separate entry from premium…
A: Working: Premium on Bonds Payable = Issue price of bonds - Face value of bonds = $2,125,000…
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: Inc. issued 55 bonds with a $1,500 face value, a five-year life, and a stated annual coupon of 5%…
A: In the given case the bonds are issued at discount (as its face value is $ 1,500 and issue price is…
Q: On June 30, Power Company issues 5%, five-year bonds payable with at face value of $60,000. The…
A: Journal entry : It is prepared to record the financial and non financial transaction of the business…
Q: Issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond Carries 10 warrants, and…
A:
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: a $300,000 bond was redeemed at 104 when the carrying value of the bond was $316,000. The entry to…
A: Payment made on redemption = Bond face value x rate of redemption = $300,000 x 104% = $312,000…
Q: what will be the issuance price (approximate) of the bonds?
A: Interest payable on the bond for every 6 months = 9000 (300000*6%*6/12) Calculation of present value…
Q: Culver Corporation issues $450,000 of 8% bonds, due in 9 years, with interest payable semiannually.…
A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Concord Corporation issues $530,000 of 9% bonds, due in 10 years, with interest payable…
A:
Q: On the first day of the current fiscal year, $2,000,000 of 7%, 10-year bonds, with interest payable…
A: Bonds are issued by the company to meet the financial requirements of the company without losing its…
Q: On January 1, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $3,000,000. The…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate…
Q: On January 1, Parson Freight Company issues 9.0 %, 10-year bonds with a par value of $3,900,000. The…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
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…
Q: During 20x9, Oceanic Co. Issued 3,000 of its 9%, ₱1,000 face value bonds at 1011/2. In connection…
A: During 20x9, Oceanic Co. issued 9% 3000 bonds. Issued price = P101.5 Issued price of bonds = P101.5…
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: A $278,000 bond was redeemed at 98 when the carrying amount of the bond was $273,830. The entry to…
A: Given data: Value of Bond: $278,000 Carrying amount of bond : $273,830 Redeemed at 98 If the…
Q: On the first day of the current fiscal year, $200,000 of 10-year, 7% bonds, with interest payable…
A: Bonds Bond is a long-term financial instrument issued by a company for which the company pays…
Q: Langdon & Co. issues bonds with a face value of $50,000 for $51,000. Each $1,000 bond carries 10…
A: We need to separate the value assigned to the bonds and the warrants. As a first step we will…
Q: The total interest paid on $46,000, ten-year, 6 percent bonds that are issued at 98 is a. $28,520.…
A: Total interest paid = Interest paid + Discount on bonds where, Discount on bonds = Face value of…
Q: A company issued 8%, 15-year bonds with a par value of $470,000 that pay Interest semiannually. The…
A: Bonds: In finance, bonds are a sort of safety net utilized in shared assets and private…
Q: On July 1, 20x7, Morning Co. received P103,288 for ₱100,000 face amount, 12% bonds, a price that…
A: Interest expenses on bond issued is given by Ie =issue price * market yield of bond * period =…
Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $860 for $89,900. The bonds…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%. five-year bond that pays…
A: Bond Payable: It is the liability of the company which has to pay within the required period of…
Q: A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to…
A: Total amount paid for bond redemption = $300,000×104% =$312,000
Q: On January 1, 2018, Denver Services issued $20,000 of 8% bonds that mature in five years. The bonds…
A: Given, Bonds Face value = $20,000 Bonds issue price = $19,000
Q: On January 1 of the current year, the Barton Corporation issued 11% bonds with a face value of…
A: Semiannnual interest expense = Semiannual interest payment + Semiannual discount amortization
Q: On January 1, the Ryan Company issued $400,000 of 6%, 6-year bonds when the market rate of interest…
A: The cash collected from the issue of bonds is referred to as bond proceeds.
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: A $1,200,000 bond issue on which there is an unamortized premium of $63,956 is redeemed for…
A: Journalize the redemption of the bonds.
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: 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: On the first day of the current fiscal year, $2,000,000 of 10-year, 6% bonds, with interest payable…
A: Given: Value of the bond = $ 2,000,000 Bond rate = 6 % Price of the bond = $ 2,125,000
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: On July 1, 2018, Mason & Beech Services issued $33,000 of 10% bonds that mature in five years. They…
A: Interest payable on the bond is the amount payable on the bond by the bondholder at the coupon rate,…
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: he entry to record the redemption would include a
A: The correct option is: d.gain on bond redemption of $12,240. Gain on bond redemption is calculated…
Q: Eli Inc. issued $110,000 of 9% annual, 5-year bonds for $112,900. What is the total amount of…
A: Interest formulae =face value of bond* interest
Q: On January 1, 2018, Western Services issued $20,000 of 8% bonds that mature in five years. The bonds…
A: A bond is borrowing security issued by the company by signing a bond agreement in which terms and…
Q: On January 1, Applied Technologies Corporation (ATC) issued $500,000 in bonds that mature in10…
A: Journal entries refer to recording/ classifying business transactions into the book of accounts…
Q: Five thousand bonds with a face value of $1000 each, are sold at 102. The entry to record the…
A: Journal entries are the entries to be recorded for all the business occurred in the accounting books…
Q: Concord Inc. issues $ 2,300,000 of 7% bonds due in 12 years with interest payable at year-end. The…
A: Value of bond is the present value of the future coupon payments and the present value of the bond…
Q: If the amount of a bond premium on an issued 11%, four-year, $100,000 bond is $12,928, the annual…
A: A bond is basically an interest-bearing loan instrument that is issued by the companies in order to…
Q: Evie Inc. issued 49 bonds with a $1,400 face value, a five-year life, and a stated annual coupon of…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Five thousand bonds with a face value of $2000 each, are sold at 93. The entry to record the issuance is
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semi-annually. What is the journal entry to record the first payment to the bondholders?Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the first interest payment?Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the sale of the bonds?
- On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?Willoughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received $105,000. What is the journal entry to record the sale of the bonds?Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal entry to record this transaction includes ________. A. a debit to Bonds Payable for $100,000 B. a debit to Discount on Bonds Payable for $4,000 C. a credit to cash for $96,000 D. a credit to Discount on Bonds Payable for $4,000
- On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received $45,000. What is the journal entry to record the sale of the bonds?A company issued $100,000, 5-year bonds, receiving $97,000. What is the balance sheet presentation immediately after the sale?
- Piedmont Corporation issued $200,000 of 10-year bonds at par. The bonds have a stated rate of 6% and pay interest annually. What is the journal entry to record the first interest payment to the bondholders?Lunar Corporation issued $80,000 in bonds for $87,000 on Jan. 1. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the first interest payment?Pinetop Corporation issued $150,000 10-year bonds at par. The bonds have a stated rate of 6% and pay interest annually. What is the journal entry to record the sale of the bonds?