On December 31, a $1,950,000 bond issue on which there is an unamortized discount of $70,500 is redeemed for $1,908,400. Required:   Journalize the redemption of the bonds. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.

Q: On June 30, Jamison Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: Payment of interest on December 31 = Face value of bonds x rate of interest x no. of months /12…

Q: On the first day of the fiscal year, a company issues a $2,500,000, 12%, 7-year bond that pays…

A: >Bonds Payable are the source of finance for the companies. >The bondholders are entitle for a…

Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…

A: Excess of issue price over the face value of the bond is Premium on Bonds Payable.   In the given…

Q: Prepare the entry to record the issuance of the bonds and warrants. (Credit account titles are…

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

Q: On the first day of the fiscal year, a company issues an $8,000,000, 11%, five-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues an $4,900,000, 6%, 4-year bond that pays…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $950,000, 8%, 10-year…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays…

A: Solution: Discount on issue of bond = Face value - Issue price = $946,000 - $889,240 = $56,760…

Q: On December 31, a $1,550,000 bond issue on which there is an unamortized discount of $73,900 is…

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

Q: Recording in the Accounting System On January 1, 2014, Jack Company issues the $3,840,000, 6%,…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

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: 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, 2021, COVID Hospital issued a P250,000, 10 percent, 5-year bond for P231,601. Interest…

A: Interest expense is the expense which is payable on the borrowings like bonds, debentures etc.…

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: On the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays…

A:

Q: On January 1, 2020, Riverbed Corporation redeemed $400,000 of bonds at 96. At the time of…

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

Q: On the first day of the fiscal year, a company issues a $2,050,000, 9%, five-year bond that pays…

A: Bond: It is  long-term financial instrument issued by a company. Interest is paid to bond holders…

Q: On the first day of the fiscal year, a company issues an $988,000, 9%, five-year bond that pays…

A: On amortization of bond discount using the straight-line method, the discount is amortized…

Q: On January 1, 2018, Technicians Credit Union (TCU) issued 5%, 20-year bonds payable with face value…

A: Premium on Bonds Payable = Face value of Bonds - Issue price = $100000 - $100000*106% = $6000

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: On January 1, 2017, Cullumber Company redeemed $490,000 of bonds at 103. At the time of redemption,…

A: Journal entry to record reacquisition of bond is as under:

Q: On the first day of the fiscal year, a company issues an $2,250,000, 9%, five-year bond that pays…

A: Premium on Bonds Payable = Issue value of bonds - face value of bonds = $2,379,570 - $2,250,000 =…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $650,000, 6%, 10-year…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…

A: Bonds: Bonds are financial debt instruments issued by the corporations to raise for the purposes of…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…

A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue of bond…

Q: first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays semiannual…

A: Solution: When the face value of bond is higher than issue price of bonds then that represents that…

Q: On the first day of the fiscal year, a company issues a $1,000,000, 8%, five-year bond that pays…

A: Journal entry can be defined as the process of recording relevant business transaction into the…

Q: On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays…

A: Journal entry A journal entry is used to record a business transaction within the accounting…

Q: On the first day of the fiscal year, a company issues an $994,000, 7%, 5-year bond that pays…

A: Total discount on bonds issue =  Face value of the bonds - Issue value of the bonds = 994000-934400…

Q: On May 1, 2020, Larkspur Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one…

A: Bond: It is a debt instrument issued by the companies in order to raise finance. Bonds can b traded…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $850,000, 8%, 10-year…

A: Journal is the book of original entry in which all the financial transactions of the business are…

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: On January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond…

A: Total premium on bonds issue = Issue value - Face value of bonds = $2,379,360 - $2,250,000 =…

Q: On January 1, the first day of the fiscal year, a company issues an $1,800,000, 4%, five-year bond…

A: Journal: Recording of a business transactions in a chronological order.

Q: On the first day of the fiscal year, a company issues an $565,000, 9%, 5-year bond that pays…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On the first day of the fiscal year, a company issues a $1,550,000, 12%, five-year bond that pays…

A: Discount on Bonds Payable = Face value of the bonds - Issue value of the bonds = $1,550,000 -…

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 $5,000,000, 7%, five-year bond that pays…

A: Bond issuance: It is the way the company raises money. It is a type of loan between the investor and…

Q: On the first day of the fiscal year, a company issues a $900,000, 9%, 5-year bond that pays…

A: Given, Face value = $900,000 Issue price = $884,176

Q: Crane Company issued $1,730,000 of bonds on January 1, 2022. (a) Prepare the journal entry to record…

A: When bonds are issued at discount then we will debit "Discount on bonds payable" account is debited.…

Q: THIS QUESTION WILL ALSO BE CHECKED MANUALLY (to make adjustments for typos). QUESTION 9 On the first…

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

Q: On January 1, the first day of the fiscal year, a company issues a $1,550,000, 12%, five-year bond…

A: Every business needs funds for running of its operations smoothly, There are several sources which…

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 $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: On the first day of the fiscal year, a company issues a $584,000, 11%, 10-year bond that pays…

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

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: 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 May 1, 2020, Stellar Company issued 1,900 $1,000 bonds at 102. Each bond was issued with one…

A: