On January 1, 2021, Luyang Company issued 3-year bonds with face amount of P5,000,000 at 98. Additionally, the entity paid bond issue cost of P140,000. The nominal rate is 10% and the effective rate is 12%after considering the bond issue cost. The interest is payable annually on December 31. The entity used the effective interest method in amortizing bond discount and issue cost. What is the carrying amount of the bonds payable on December 31, 2021?

Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…

A: Cash(600000*102/100) Dr $612000 Bond payable  Cr                      $600000 Premium on issue   Cr.…

Q: ABC Corporation is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2020, with…

A:

Q: ABC Corporation is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2020, with…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: On January 2, 2020, Progresso Inc. purchased $150,000 of Cambells Corporation bonds at a discount of…

A: When the stated interest rate of the bond is less than the market interest rate then the bond is…

Q: Marbel Company was authorized to issue 12% bonds payable with face amount of P5,000,000 on April…

A: Bonds are those units that are issued by the companies and securitized as tradeable assets. It is a…

Q: On January 1, 2020, Latvia Company issued 3-year bonds with face amount of 5,000,000 at 98.…

A: Effective interest method is method used to recognise the interest expense for the year, when…

Q: On January 1, 2020, Latvia Company issued 3-year bonds with face amount of 5,000,000 at 98.…

A: On 01.01.2020, Latvia Company's Issued 3 years bonds with face value = 5000000 Issued price = 98…

Q: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with a face…

A: SOLUTION- BOND  IS A FIXED OBLIGATION TO PAY  THAT IS ISSUED BY A CORPORATION OR GOVERNMENT ENTITY…

Q: On January 1, 2019, the JSW Corporation issued 10% bonds with a face value of $100,000. The bonds…

A: Answer - Working Note : The computation of the interest expense is shown below:   The bond interest…

Q: On March 1, 2021, Baddour, Inc., issued 12% bonds, dated January 1, with a face amount of $165…

A: 1. Compute amount of bonds report in its balance sheet as shown below:     Working note:   Compute…

Q: Aye Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2021 with interest…

A: Formula: Interest amount = Bond authorized value x Interest rate x Time period.

Q: Olay Inc. issues $160,000, 8%, 10-year bonds payable on January 1, 2020. Calculate the selling price…

A: a. Compute the S.P. (selling price) of bonds at 10% as follows:

Q: On March 1, 2021, Brown-Ferring Corporation issued $100.0 million of 15% bonds, dated January 1,…

A: Accrued Interest- In accounting, accrued interest refers to the sum of interest that has been…

Q: On January 1, 2021, RANCY Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

Q: DEF Company was authorized to issue 12%, 10-year bond with face amount of P20,000,000 on January 1,…

A:

Q: Inc., issued $ 20,000,000. of bonds, which have a ten year term and a contract or payment interest…

A: Computation paid to bond holders =face value of Bond ×Contract interest rate ×612…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A:

Q: On January 1, 2020, Kelly Company issued bonds with the face amount of P 5,000,000, 8% serial bonds…

A: The calculation of interest expense has been made as follows: Interest expense for the year=Bond…

Q: On August31,2021, DASHER Company issue dat 104 plus accrued interest, three thousand 10% bonds with…

A: Answer: The carrying value of a bond refers to the net amount between the bond’s face value plus any…

Q: On March 31, 2018, Wins Corporation issued $2,000,000 of its 6%, 10-year bonds for $1,758,200…

A: S.No. Date Particulars Debit Credit 1 March 31, 2018 Cash  $  1,758,200.00       Discount on…

Q: On January 1,2019, ABC Corporation issued a 5-year, 12%, 1,000 of the P 5,000 face value bonds with…

A: Carrying value of the bonds as of December 31,2020 = Present value of principal + Present value of…

Q: On September 1, 2021, ETC Company received P1,032,880 for P1,000,000 face amount, 12% bonds, a price…

A: If the issue price of a bond exceeds its face value then the bond is said to be issued at a premium.

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On October 1, 2010, EEE Inc. issued, at 101 plus accrued interest, 800 of its 10 percent, P1,000…

A: In the given case - P1000 Bonds are dated 1st July-2010. The bonds are issued on 1st October-2010…

Q: On January 1, 2020, Wolf Company issued 10% bonds in the face amount of P5,000,000, which mature on…

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

Q: On March 1, 2021, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A: 1. Determine the amount(s) related to the bonds Baddour would report in its balance sheet at…

Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…

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

Q: On January 1, 2021, a company issued 10-year, $3,000,000, 6% bonds with semiannual interest…

A: a.

Q: On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

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

Q: 1, 2021, Tim Co. sold 12% bonds with a face value of P600,000. The bonds mature in five years, and…

A: Interest expense will be the sum of interest expenses for the first two semiannual periods. For this…

Q: On January 1, 2021, Bicol Company issued 5-year bonds with face value of P 10,000,000 at 95. The…

A: Working notes :-…

Q: On December 1, 2018, the Lawrz Corporation issued five-year, non-convertible P5,000,000 face value…

A:

Q: On March 1, 2021, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2021,…

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

Q: On January 1, 2021, Masbate Company issued 5-year bonds with face amount of P5,000,000 at 110. The…

A: Amortization is the total time taken to repay a mortgage fully. So it denotes the total period of…

Q: On January 1, 2019, Bota Company issued a 3-year bonds with a face value of P5,000,000 at 99. The…

A: The yield is the rate at which the present value of the coupons and the redemption amount is equal…

Q: Prepare the journal entry to record the interest payment and the amortization for 2022

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

Q: On March 1, 2020, WHITE Corporation purchased bonds with face amount of P5,000,000. The entity paid…

A: Coupon Interest on the bonds: White Corporation purchased the bonds on 1st March 2020 and held the…

Q: On January 1, 2020 Wolf Company issued 10% bonds in the face amount of P5,000,000, which mature on…

A: The bonds are issued on premium when market interest rate is less than the coupon rate of the bonds…

Q: On January 1, 2009, Beta Company issued 5,000 of its 12%, P1,000 face value bonds for P5,600,000,…

A: Formula: Net amount received from the issuance of the bonds = Issue value of the bonds + Accrued…

Q: On January 1, 2019, Langka Inc. issued 9% bonds in the face amount of P5,000,000 which mature on…

A: Solution: Face value of bond = P5,000,000 Issue price of bond = P4,695,000

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: Terry Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2011 with…

A: Bonds Payable - Bonds Payable is the liability for the company issued for a fixed period of time. It…

Q: On the July 1, 2021, Trials Corporation issued $17,500,000 of five-year, 12% bonds to finance its…

A: Bonds are issued to generate funds. When the contract rate of interest is more than the market rate…

Q: On January 1, 2020, Resty Company issued bonds with the face amount of P 10,000,000, 8% serial bonds…

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

Q: On January 1, 2021, Minorka Company issued a 5-year, P3,000,000, 17% bonds. The effective interest…

A: The bond price for the buying of the bonds is the price after paying all costs. The effective…

Q: On January 1, 2019, P Sport Corporation issued 10% bonds with a face value of $200,000. The bonds…

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

Q: On January 1, 2021, Marena Company issued bonds with a face amount of P3,500,000 for P3,765,300. The…

A: The company can raise the required capital by issuing the shares, debentures, bonds, etc., These are…

Q: On March 1, 2021, RED Corporation issued at 103 plus accrued interest, 1,000 of its 9%,₱1,000 bonds.…

A: Solution: Accrued Interest for 2 months of Jan and Feb = 1000*1000*9%*2/12 = 15,000 Net cash…

Q: On July 31, 2018, Hummbug Corporation issued $100,000, 5%, 20-year bonds for $113,678 when the…

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