On January 1, 2017, Larkspur Inc. issued $500,000 of 7%, 5-year bonds at par. Interest is payable semiannually on July 1 and January 1. Prepare journal entries to record the following: 1. the issuance of the bond 2. the payment of interest on July 1st 3. the accrual of interest by December 31st

Q: The following transactions are taken from the records of the Elton Corporation. Prepare journal…

A: Solution- Note - Since you have posted a question with multiple subparts ,we will solve first four…

Q: On January 1, 2011, Mormont Company issued 9% bonds in the face amount of P2,500,000 which mature on…

A: Premium (discount) upon issuance of bonds = Issue value of the bonds - Face value of the bonds…

Q: a. Make the necessary adjusting entries at December 31, 2011, and the journal entry to record the…

A:

Q: On January 1, 2016, Crammer Inc. issues five-year bonds with a total face amount of $1,000,000 and a…

A: Bonds payable is a form of liability being incurred by the business, on which regular interest…

Q: On January 1, 2015, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000,…

A: 1.

Q: North Airlines Company issued $900,000 of 8%, 10-year bonds on January 1, 2017, at Face value.…

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

Q: Jaurez Company issued $400,000 of 9%, 10-year bonds on January 1, 2010, at face value. Interest is…

A: Journal entry is a process of recording the business transaction in the books of accounts for the…

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: On June 1, 2015, Meganium Controls, Inc. issued P12,000,000 of 10% bonds at P10,348,080. Interest is…

A: The question is based on the concept of Financial Accounting.

Q: (Entries for Bond Transactions) Presented below are two independent situations.1. On January 1,…

A: 1. For Simon company: prepare journal entries to record the following: 1) The issuance of the bonds…

Q: On August 1, 2010, a company issues bonds with a par value of $600,000. The bonds mature in 10 years…

A: In this question we will put journal entry to record the interest accrued  at December 31,2010.

Q: Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2017, at 84.95 to yield 12%.…

A: a. Date Account Title and Explanation Debit Credit 1-Jan Cash ($800,000*119.792%) $958,336…

Q: On January 1, 2018, Davie Services issued $20,000 of 8% bonds that mature in five years. They were…

A: Premium on issue of bonds = Isue value - face value of bonds = $20,750 - $20,000 = $750

Q: On March 1, 2011, Fast Freight Company sold Rs. 400,000 of its 9 percent, 20-year bonds at 109.9.…

A: Amortization Schedule Date Interest payment Interest Expense Amortization of premium Balance in…

Q: On January 1, 2017, Babb Trailers, Inc. issued $6,500,000 of par value bonds for $6,200,000. The…

A: Solution:- The amount of interest expense recognized by Babb Trailers, Inc. on the bond issue for…

Q: On January 1, 2016, Knorr Corporation issued $1,000,000 of 9%, 5-year bonds dated January 1, 2016.…

A: The question is based on the concept of Financial Accounting.

Q: On April 1, 2016, Western Communications, Inc., issued 12% bonds, dated March 1, 2016, with face…

A: 1.Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth’s…

Q: On January 1, 2015, Tyrion Company issued P4,000,000 maturity value, 12% bonds for P4,000,000 cash.…

A: Total liabilities = Maturity value of bonds + Accrued interest where, Accrued interest = Face value…

Q: On January 1, 2015, a company issues 5-year bonds with a stated interest rate of 6% and records the…

A: Interest payable on January 1 = Face value of bonds x rate of interest x 6/12 = $500000 x 6% x 6/12…

Q: Lorance Corporation issued $850,000, 9%, 10-year bonds on January 1, 2015, for $797,036. This price…

A: If the bonds are issued at price less than the face value then it is said to be issued at discount.

Q: ctions for Zillow include an explanation for each entry A. Insurance if the bonds payable at par on…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: On January 1, 2017, ABC company issued a $500,000, 8%, 10-year bond at the yield of 6%. Interest is…

A: Bonds are debt instruments issued by the company to investors. It is as good as a loan to the…

Q: On January 1, 2015, Buchheit Enterprises reported $95,000 in a liability called “Bonds Payable,Net.”…

A: We have the following information:  Reported $95,000 as Bonds Payable in Liability section of…

Q: On June 30, 2017, ABC Co. issued $6,000,000, 6%, 4-year bonds. The bonds were sold to yield an…

A: Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: On April 1, 2016, Lanz Company issued at 99 plus accrued interest, 200 of its 8%, P 1,000 bonds. The…

A: Bonds are the type of debt security issued by the company having a fixed percentage of coupon rate…

Q: On November 1, 2015, Davis Company issued $30,000, ten-year, 7% bonds for $29,100. The bonds were…

A: SOLUTION- BOND-IT IS A FIXED INCOME INSTRUMENT THAT REPRESENT THE LOAN MADE BY AN INVESTOR TO A…

Q: On March 1, 2016, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A: 1.Working notes:

Q: On January 1, 2017, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

A:

Q: On September 1, 2011, Park Rapids Lumber Company issued $80 million in 20-year, 10 percentbonds…

A:

Q: Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2017, at 119.792 to yield 8%.…

A: Requirement a:   Pass necessary journal entry to record issue of bonds at premium.

Q: On June 30, 2017, ABC Co. Issued $ 6,000,000, 6%, 4-year bonds. The sold to yield an effective…

A: Issue Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: On January 1, 2017, Carter Sales issued $28,000 in bonds for $15,700. These are six-year bonds with…

A: The following entry would have been recorded by Carter on January 1, 2017.

Q: Ivanhoe Company issued $2,900,000 of 10%, 10-year bonds on January 1, 2017, at 102. Interest is…

A:

Q: Teton Corporation issued $600,000 of 7% bonds on November 1, 2017, for $644,636. The bonds were…

A:

Q: On January 1, 2017, the board of directors of Papermaker Inc. issued 9-year, 2% bonds with a par…

A: 2. Discount on Bonds Payable  = Face value of bonds x (100 - issue price) = $600,000 x (100 - 97%) =…

Q: On March 1, 2016, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of…

A: Step 1: Record the journal entry for issuance of bonds on March 1, 2016:

Q: On January 1, 2017, Babb Trailers, Inc. issued $6,500,000 of par value bonds for $6,200,000. The…

A: If the Bonds are issued on Discount then Carrying Value of Bonds will be Face Value  - Unamortized…

Q: Pharoah Company issued $2,400,000 of 10%, 10-year bonds on January 1, 2017, at 104. Interest is…

A: As bonds are issued at premium, it means that bonds are sold at the amount that is greater than…

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: Clem Company issued $800,000, 10-year, 5 percent bonds on January 1, 2015. The bonds soldfor…

A: In this question, we have required to pass the journal entry of issue of the bond issue and the…

Q: On January 1, 2017, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

A: