On January 1, 2021, Minorka Company issued a 5-year, P3,000,000, 17% bonds. The effective interest rate after considering the bond issue cost is 16%. The bond issue cost paid by the issuer is P70,000 The bond pays interest annually every December 31. The entity uses 2 decimal places for the PV factor. Under the effective interest method, how much is the issue price of the bonds payable on January 1, 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: On January 1, 2021, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds…

A: Requirement 1:

Q: On March 1, 2020, Sandollar Inc. issued $90,000 of bonds at 105, paying 8% cash interest…

A: Journal: Recording of a business transactions in a chronological order.   As posted multiple sub…

Q: On January 1, 2021, Surreal Manufacturing issued 540 bonds, each with a face value of $1,000, a…

A: Bond Amortization Schedule Period Ended Changes during the period Ending bond liability balances…

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: On July 1, 2020, Shake Corporation issued its 10%, 7-year bonds with one detachable warrant attached…

A: solution : the issued instrument is a compound financial instrument We shall identify the financial…

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

A: market value of bond= present value of future payments@YTM

Q: On January 1, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. The bond interest is…

A: SOLUTION INTEREST EXPENSE TO BE RECOGNIZED FOR 6 MONTHS = BONDS BOOK VALUE AT THE BEGINNING OF THE…

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 January 1, 2021, NFB Visual Aids issued $800,000 of its 20-year, 8% bonds. The bonds were priced…

A: 1.

Q: On January 1, 2018, Watch Works Incorporated (wWI) issued $77,000 par value, 8%, four-year bonds…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: On January 1, 2020, Teal Company sold 11% bonds having a maturity value of $500.000 for $ 518.953,…

A: Annual interest payment = Face value of bonds x rate of interest x no. of months/12 = $500,000 x 11%…

Q: On January 1, 2021, Luyang Company issued 3-year bonds with face amount of P5,000,000 at 98.…

A: Bonds payable is a liability account that holds the amount that the issuer owes to bondholders.…

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: 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 March 1, 2020, Mitchell Inc. issued 60, 6%, $1,000 bonds dated March 1, 2020 for $62,626. The…

A: Bond Payables: In the financial statement, bonds payable represents the amount owing to bondholders…

Q: On January 1, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. Thebond interest is…

A: The correct option is option “d”.

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 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 May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: Period Interest Payment Interest Expense Discount Amortization Bond Amortized Cost May 31, 2020…

Q: On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The…

A: Amount received from the bond issuance = (Face value of bonds x issue price/100)  - bond issue cost…

Q: Prepare the company’s journal entries for (a) the January 1 issuance, (b) the July 1 interest…

A: Effective Interest rate refers to the compounded interest rate that the bond holder actually pays as…

Q: On January 1, 2021, Borg Company issued 4,000 of its 8% P2,000 face value bonds at 97 including…

A: The bonds are issued at discount when the coupon rate of bonds is lower than the stated rate of…

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 July 31, 2018, Snowday Corporation issued $100,000, 5%, 20-year bonds for $88,443 when the market…

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

Q: On January 1, 2021, Surreal Manufacturing issued 690 bonds, each with a face value of $1,000, a…

A: Bonds are the liabilities to pay interest periodically and principal amount on maturity. They are…

Q: On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-year bonds. The bonds pay interest…

A: Prepare journal entries as follows: Result:

Q: On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides,…

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

Q: On December 31, 2019, Ulster Co. issued P200,000 of 8% serial bonds, to be repaid in the amount of…

A: Bonds appear to be a financial vehicles  whereby an investor or individual lends money to a company…

Q: On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A: First we need to calculate the fair value of the bond. = Coupon x PVAF(r,n) + FV x PVF(r,n) Where,…

Q: On May 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with a…

A: We know that the current carrying value of the bond is the present value of all the cash payments to…

Q: On January 1, 2021, Surreal Manufacturing issued 540 bonds, each with a face value of $1,000, a…

A: Solution 1:             Period Changes during the period Ending bond liability balances Interest…

Q: On May 31, 2020, VIOLET Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: The carrying value is calculated by deducting the amortized expense from the original cost of an…

Q: On January 1, 2021, Solis Co. issued its 10% bonds in the face amount of P3,000,000, which mature on…

A: Bonds are an obligation on an entity which is to be repaid on its maturity date. These are issued…

Q: On January 1, 2020, Marimar Company issued 10,000 of its 12%, P1,000 face value 5-year bonds at 105.…

A: Interest on bond will be charged on the par value of bond, at the rate for which bond issued.…

Q: At January 1, 2020, Konerko Corp. issued $40,000,000 of 6%, 12-year bonds that paid interest…

A: Bonds: It is also known as fixed-income security, is a debt instrument created for the purpose of…

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, XYC Company issued P6,000,000 of its 8%, 6 year bonds at P110. Interest is…

A: You have posted multiple-part questions & as per our policy, only the first three parts are…

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

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: On January 1, 2021, Rapid Airlines issued $200 million of its 8% bonds for $184 million. The bonds…

A: Required: 1. Prepare the journal entry to record interest on June 30, 2021 (the first interest…

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 July 1, 2021, Spear Co. issued 1,000 of its 10%, P1,000 bonds at 99 plus accrued interest. The…

A: Amount received from the issuance of the bonds is calculated by adding the accrued interest on the…

Q: On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A:

Q: On May 31, 2020, VIOLET Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: On November 1, 2021, Mason Company issued P8,000,000 of its 10 year, 8% term bonds dated October 1,…

A: Total discount on issue of bonds = Face value of bonds - issue value of bonds = P8,000,000 -…

Q: On March 1, 2021, JebaMac Company issued 7% term bonds with a face amount of P1,000,000 due March 1,…

A: Initial carrying amount of the liability = Present value of principal + Present value of interest…

Q: On July 1, 2021, GIl Inc. received 103,288 for each 100,000 face value bonds, 12% bonds, a price…

A: Interest payable on December 31, 2021 = (Face value per bonds x no. of bonds) x rate of interest x…

Q: On November 1, 2021, Mason Company issued P8,000,000 of its 10 year, 8% term bonds dated October 1,…

A: Total interest accrued for the period ending July 31, 2022 = Face value of bonds x rate of interest…

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…