much should be recorded for Discount (or Premium) on Bonds Payable? (Enter an amount. Please do not put a plus or minus

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

A: Bonds are the promise made between two or more persons legally. Bonds are issued by the companies…

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 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: 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 the first day of the fiscal year, a company issues a $2,800,000, 8%, 8-year bond that pays…

A: The bonds are the financial instruments used to raise the money from the investors.

Q: On January 1, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $3,500,000. The…

A: Bonds are a form of loan or debt that is being issued by the company, on which regular interest…

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: 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: 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: On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $3,800,000. The…

A: Difference between the issue price and face value will be recorded as discount. Discount = Face…

Q: The Kaplan Group sold $200,000 of 10-year bonds for $190,000. The face rate on the bonds was 8% and…

A: Interest paid on December 31 = Face value of bonds x rate of interest x no. of years = $200000 x 8%…

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 January 1, Hurley Corporation issues $1,000,000, 5-year, 12% bonds at 96 with interest payable on…

A: Bonds are a form of debt taken by the company. When bonds are issued at a discount or premium, then…

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: 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 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: Journalize the entry to record the issuance of the bonds.

A: Journal entry:   It is a systematic record of a financial transaction of an organization recorded in…

Q: On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The…

A: The correct option will be Debit Cash $ 2,143,712; Debit Discount on issue of Bonds Payable $…

Q: On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that pay interest…

A: Calculation of Amount of Bond Discount:The bond premium is $10,087 for six months. The bond premium…

Q: lue of each stock purchase

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

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: On Jan. 1, Year 1, Nadal Inc. issued 100 bonds with a face value of $1,000 each for $103,500. The…

A: In the given case, Nadal Inc issued 100 bonds with a face value of $1000 each at a premium of $35.…

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: 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: Keys Inc. Issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal…

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

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: 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: 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: 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: On the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays…

A: When a bond issued for a amount more than its face value then the excess amount received would be…

Q: Hoover Corp., a wholesaler of music equipment, issued $16,700,000 of 15-year, 11% callable bonds on…

A: Bonds are kind of loan on which interest is paid and redeemed after certain period of time.

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: On May 1, 2020, Judice Company issued 400 $1,000 bonds at 104. Each bond was issued with two…

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

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $920 for $95,800. The bonds…

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

Q: On the first day of the fiscal year, a company issues a $1,600,000, 6%, 6-year bond that pays…

A: SOLUTION PREMIUM ON BONDS- WHEN BONDS PAYABLE ARE ISSUED FOR AN AMOUNT GREATER THAN THEIR FACE  AND…

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 January 1 of Year 1, Drum Line Airways issued $3,770,000 of par value bonds for $3,440,000. The…

A: Given the following information: On January 1 of Year 1, Drum Line Airways issued $3,770,000 of par…

Q: On July 1, 2020, Carol Company issued at 104, five thousand 10% bonds with face amount of P1,000 per…

A: In this question, we have been asked to calculate the carrying value of the bonds, for which we are…

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: On Jan. 1, Year 1, Foxcroft Inc. issued 110 bonds with a face value of $920 for $105,200. The bonds…

A: Face value of 110 bonds is $101,200. But $105,200 (110*$920) of cash has been received. This means…

Q: On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The…

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

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: a).Prepare the journal entry to record the sale of these bonds on   January 1, 2010.…

A: Face Value of bond = $1,000 Coupon rate = 8% x 6 ÷12 = 4% per period (semiannual) Term = 5 years x 2…

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: Wildhorse Corporation issued $410,000 of 10-year bonds at a discount. Prior to maturity, when the…

A: Solution: Face value of bond= $410,000 Carrying value of bond prior to redemption = $379,250…