Marigold Industries, Inc. issued $ 12,600,000 of 8% debentures on May 1, 2020 and received cash totaling $ 11,179,511. The bonds pay interest semiannually on May 1 and November 1. The maturity date on these bonds is November 1, 2028. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective-interest rate of 10%. Calculate the total dollar amount of discount or premium amortization during the first year (5/1/20 through 4/30/21) these bonds were outstanding. (Round answers to 0 decimal places, e.g. 5,275.) Date Interest Expense Cash Interest Discount Amortized Carrying Value of Bonds 5/1/20       $ 11/1/20 $ $ $   5/1/21         Total     $

Q: On January 1, 2018, CHE Co. purchased 12% bonds, having a maturity value of P800,000, for P860,652…

A:

Q: On March 1, 2022, Erik Company issued 10,000 of its P1,000 face value bonds at 95 plus accrued…

A: A bond is just like the bank loan. A bond holder will get the principal amount at the maturity of…

Q: On January 1, 2021, Mirada, Inc. issued five-year bonds with a face value of $100,000 and an annual…

A: Carrying cost is value of bonds which is shown in books of accounts

Q: On January 1, 2018, Surreal Manufacturing issued 550 bonds, each with a face value of $1,000, a…

A: An amortization bond schedule is that in which the yearly principal amount is reduced with the…

Q: January 1, 2020, Patrick Corporation issued P10 million bonds that will mature in five years. The…

A: Sinking fund are created for the bonds so that sufficient amount get accumulated at the end of…

Q: effective-interest basis. Prepare the journal entry to record the interest payment and the…

A: Given that: On January 1, 2020, Swifty Company sold 11% bonds having a maturity value of $700,000…

Q: On November 1, 2021, Mason Company issued P8,000,000 of its 10 year, 8% term bonds dated October 1,…

A: Total discount on issue of bonds = Face value of bonds - issue value of bonds = P8,000,000 -…

Q: On January 1, 2020, Teal Company sold 11% bonds having a maturity value of $500.000 for $ 518.953,…

A: Annual interest payment = Face value of bonds x rate of interest x no. of months/12 = $500,000 x 11%…

Q: Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on…

A: Requirement 1:

Q: On April 1, 2020, BANANA Company purchased 9% bonds with a face value of ₱4,000,000 for ₱3,756,000…

A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…

Q: On January 1, 2021, Loop Raceway issued 590 bonds, each with a face value of $1,000, a stated…

A: An amortization bond is one in which the principal (face value) on the loan is paid regularly,…

Q: On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2,157,700. The bonds will…

A: Interest payment = $2,460,000*8% Interest payment = $196,800

Q: 1. Determine the price of the bonds issued on February 1, 2021. 2-a. Prepare amortization schedules…

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

Q: On March 1, 2020, Mitchell Inc. issued 60, 6%, $1,000 bonds dated March 1, 2020 for $62,626. The…

A: Bond Payables: In the financial statement, bonds payable represents the amount owing to bondholders…

Q: On December 31, 2020, Balbond issued 3,000 of its 15-year 6%, P1,000 face value bonds for…

A: Lets understand the basics. For calculating carrying value of the bond, we will need use effective…

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: 1. Workings: 600,000*7%*6/12= 21,000 Interest paid= 6% interest on carrying value for 6 months…

Q: On January 1, 2020, Lolo Company issued its 9% P9,000,000 face value bonds, which matures on January…

A:

Q: On January 1, 2021, Surreal Manufacturing issued 570 bonds, each with a face value of $1,000, a…

A: 1. Period Changes during the period     Ending bond liability balances       Interest expense…

Q: On January 1, 2019, Gates Corporation issued $200,000 of 5-year bonds due December 31, 2023, for…

A: In the given sum we will have to calculate the amortization expenses and interest expenses of the…

Q: On January 1, 2022, Isabel Company purchased bonds with face amount of P8,000,000 for P7,679,000 to…

A: The question is based on the concept of Financial Instruments. Financial Assets are investment…

Q: On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A: Gain on retirement of bonds is the difference between the net carrying value of the bond on the date…

Q: Colwood Candies issued $370,000 of 12%, five-year bonds on January 1, 2020, when the market interest…

A: Amortization schedule is the one which is prepared to record the interest incurred during a period,…

Q: On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a…

A: Cash Interest=Face Value×Interest rate=$560,000×3%=$16,800

Q: On January 1, 2021, Surreal Manufacturing issued 690 bonds, each with a face value of $1,000, a…

A: Bonds are the liabilities to pay interest periodically and principal amount on maturity. They are…

Q: On January 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with…

A: Annual interest payment = Face value of the bonds x rate of interest x no. of months /12 =…

Q: Swifty Industries, Inc. issued $12,300,000 of 8% debentures on May 1, 2020 and received cash…

A: Workings:

Q: On June 1, 2019, Bramble Company sold $3,120,000 in long-term bonds for $2,736,600. The bonds will…

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to…

Q: On April 1, 2020, CASHEW Company sold 12,000 of its ₱1,000 11%, 5-year face value bonds at 96. The…

A: Bond Payable Bond Payable is the instrument which are issued by the federal authority which is used…

Q: Sheridan Industries, Inc. issued $13,500,000 of 8% debentures on May 1, 2020 and received cash…

A: Bonds: It is the fixed income security and created for the purpose of raising capital. They are…

Q: Briggs Industries, Inc. issued $900,000 of 8% debentures on July 1, 2020. The bonds pay interest…

A: 1) Selling price of Bond : Year Amount  PV factor for 16 period Total 8th year $900,000   0.458…

Q: On January 1, 2021, Surreal Manufacturing issued 540 bonds, each with a face value of $1,000, a…

A: Solution 1:             Period Changes during the period Ending bond liability balances Interest…

Q: On January 1, 2021, Rare Bird Ltd. purchased 15% bonds dated January 1, 2021, with a face amount of…

A: Given in the question: Face Value = $22 million Face Value = $22,000,000 Coupon Rate = 15% Market…

Q: Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest…

A: The calculation is under step 2.

Q: Shoppi Company had the following amounts of long-term debt outstanding on December 31, 2019: 14%…

A: A company's current liabilities are debts or obligations that must be paid to creditors within a…

Q: On January 1, 2021, Solis Co. issued its 10% bonds in the face amount of P3,000,000, which mature on…

A: Bonds are an obligation on an entity which is to be repaid on its maturity date. These are issued…

Q: Briggs Industries, Inc. issued $900,000 of 8% debentures on July 1, 2020. The bonds pay interest…

A: Interest rate=8%2=4%

Q: On January 1, 2020, Hummer Company purchased 5% bonds, havinga maturity value of $500,000, for…

A: a. Journal entry at the date of the bond purchase:

Q: On January 1, 2020, EF company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields…

A: Bonds: Bonds are the financial security that are being tradeable in the stock market by the…

Q: Winrow Company received proceeds of $754,000 on 10-yea 8% bonds issued on January 1, 2019. The bonds…

A: A bondholder is someone who invests in or owns debt securities issued by corporations and…

Q: Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2019. The bonds pay interest…

A: Bonds represent a contract containing interest charges indicating a method of raising funds that…

Q: On January 1, 2021, Surreal Manufacturing issued 570 bonds, each with a face value of $1,000, a…

A:

Q: Holly Industries, Inc. issued P6,000,000 of 8% debentures on May 1, 2019 and received cash totaling…

A: Solution-   Date Interest Expense 5% Cash Interest   4% Discount Amortized Carrying Value of…

Q: On the first day of 2021, Blackberry issues $730 million of its 10% bonds for $666 million. The…

A: Part 1   Date  Particulars Amt(Dr)($) Amt(Cr)($)   Working    30-Jun Interest Expense A/c  Dr…

Q: On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A:

Q: On November 1, 2021, Mason Company issued P8,000,000 of its 10 year, 8% term bonds dated October 1,…

A: Total discount on issue of bonds = Face value of bonds - issue value of bonds = P8,000,000 -…

Q: Holly Industries, Inc. issued P6,000,000 of 8% debentures on May 1, 2019 and received cash totaling…

A: When the effects of compounding over time are taken into account, the effective annual interest…

Q: Oriole Industries, Inc. issued $17,700,000 of 8% debentures on May 1, 2020 and received cash…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: On January 1, 2020, Hummer Company purchased 7% bonds, having a maturity value of $500,000, for…

A: 7% bond purchased, maturity value - $500,000, price - $570,000 Yield on the bond- 5% Purchased on –…

Q: On January 1, 2020, West-Tex Oil issued $50 million of 8% bonds maturing in 10 years. The market…

A: on January 1 2020, West Tex issued $50 million  at 8% interest rate for 10 years when the market…

Q: Oriole Industries, Inc. issued $17,700,000 of 8% debentures on May 1, 2020 and received cash…

A: Bond discount is the amount by which the selling price (or issue price or market price) of the bond…