McIntyre Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the bonds were selling separately at 98. The market price of the warrants without the bonds cannot be determined. Use the incremental method to record the issuance of the bonds and warrants.

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: 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: Medhurst Corporation issued $92,700 in bonds for $90,000. The bonds had a stated rate of 10% and pay…

A: Premium (Discount) on bonds issue = Selling price of the bonds - Face value of bonds = $90,000 -…

Q: On July 1, 2020, Tealight Company issued 2,000 $ 1,000 bonds at 103. Each bond was issued with one…

A: The process of recording financial activity for the first time in the books of accounts is known as…

Q: Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock…

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

Q: Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call…

A: The Journal entry will be passed as follows on 30 Sept

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: A company issues 1,000 bonds, each with a face value of $1,000, for $1.1 million. Each bond has a…

A: Warrants are a sort of financial instrument that offers the right to acquire an underlying share at…

Q: For each of the unrelated transactions described below, present the entries required to record each…

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

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

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

Q: On May 1, 1999, Sun Corp. issued 11% bonds in the face amount of P1,000,000 that mature on May 1,…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: On January 2, 20x5, a company issues convertible bonds maturing on December 31, 20x19. On the…

A: Convertible bonds are the bonds which are convertible into shares after the respective period.

Q: Nocioni Company issued $1,000,000 of bonds on January 1, 2010. Instructions   Prepare the journal…

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

Q: n May 1, 2020, Friendly Company issued 2,000 $1,000 bonds at 102. Each bond was issued with one…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: lue of each stock purchase

A: Answer b. $489,250             Cash recd = 103% X 500 Nos X $1,000 = $515,000…

Q: Hoffman Corporation issued $80 million of 7%, 10-year bonds at 104. Each of the 80,000 bonds was…

A: Equity - Stock warrants = No. of bonds x No.of detachable stock warrant x Market value of each…

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: Barbie originally issued 5,000,000 face value bonds at 105 or a premium of 250,000.  Subsequently,…

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

Q: Pinetop Corporation issued $153,000 of 12-year bonds at par. The bonds have a stated rate of 5% and…

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: Rushton Corp., a wholesaler of music equipment, issued $17,800,000 of 15-year, 12% callable bonds on…

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

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: A company issued 432 $1,000 bonds at 116, and each bond was issued with one detachabl

A: Solution  Market value of bond= 432 * $1000 * 1.04= 449280   Issue price = 432 * $1000 * 1.16=…

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: Partially correct answer iconYour answer is partially correct. Sweet Company issued $11,000,000 par…

A: calculate the value of bonds: value of bonds = $11,000,000 * (97 /100) Value of bonds = $11.000.000…

Q: Medhurst Corporation issued $82,900 in bonds for $80,000. The bonds had a stated rate of 6% and pay…

A: Bonds are issued by the company to meet the financial requirements of the company without losing its…

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 each for $104,000. The…

A: Journal entries are passed following the golden rules of accounting  Debit all assets and expenses…

Q: For each of the unrelated transactions described below, present the entries required to record each…

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

Q: On May 1, 1999, Thunder Corp. issued 11% bonds in the face amount of ₱1,000,000 that mature on May…

A: Let us pass the journal entry for amortisation and accrued interest on October 31st, 1999 Interest…

Q: For each of the unrelated transactions described below, present the entries required to record each…

A: ANSWER 1 : Account title Debit Credit       Cash [18,800,000 *0.99] 18,612,000   Discount…

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 company has outstanding bonds payable with a total face value of $100,000. On July 1, the…

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

Q: For each of the unrelated transactions described below, present the entries required to record each…

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

Q: In April 2007, Blood corporation issued 3,000,000 of 10% nonconvertible bonds at 102 that are due on…

A:

Q: For each of the unrelated transactions described below, present the entries required to record each…

A: In entry 1 ) Bonds payable = $ 18800000 Cash = $ 18800000 * 99% = $ 18612000 Discount on bonds…

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 110 bonds with a face value of $1,000 for $113,900. The…

A: Jan 1. Cash Debit $113,900          Premium on bonds payable Credit $ 3900           Bonds Payable…

Q: On December 30, year 1, Fort, Inc. issued 1,000 of its 8%, ten-year, P1,000 face value bonds with…

A: The question is related to calculation of amount of bonds payableto be reported as on December 31st…

Q: Blue Corporation issued 2,100 $1,000 bonds at 103. Each bond was issued with one detachable stock…

A: Bonds are a form of loan or debt that is being issued by the company for the purpose of raising…

Q: A company issued $400,000 of 7% bonds at 102. One detachable stock warrant entitling the holder to…

A: PLEASE GIVE A LIKE, your response matters  Fair value of the bonds (400,000 x 95%)  $ 380,000…

Q: For each of the unrelated transactions described below, present the entries required to record each…

A: 1. Sage Corp. issued $20,100,000 par value 10% convertible bonds at 98. If the bonds had not been…

Q: Shurwood Ltd. issued 5,200,000 11%, 10-year, nonconvertible bonds with detachable warrants for…

A: 1. Date Particulars Debit Credit xxx Bank A/c $5,200,000     To 11% Nonconvertible Bonds A/c…

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…

Q: For each of the unrelated transactions described below, present the entries required to record each…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…