On January 1, 2021, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.Required:Assuming the market interest rate on the issue date is 10%, the bonds will issue at $457,102.1. Complete the first three rows of an amortization schedule.2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021.

Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…

A: Solution 1:       Journal Entries - Hillside Date Particulars Debit Credit 1-Jan-21 Cash…

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

A: Date (A) Interest payment(B)7%* face value  interest expenses(C) carrying value*8% Amortisation…

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 March 1, 2021, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of…

A: Bonds Payable: Bonds payable are recorded when a company issues bonds to generate cash. Cash…

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 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

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

Q: On January 1, Splash City issues $310,000 of 7% bonds, due in 15 years, with interest payable…

A: Bonds are a form of loan or debt issued by the company, on which regular interest payments needs to…

Q: On January 1, 2024, White Water issues $550,000 of 5% bonds, due in 15 years, with interest payable…

A: Adjusting journal entry: At year-end when the company finalizes its accounts then any unrecognized…

Q: January 1, 2020, Patrick Corporation issued P10 million bonds that will mature in five years. The…

A: Sinking fund are created for the bonds so that sufficient amount get accumulated at the end of…

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: [The following information applies to the questions displayed below.] On January 1, 2021, Splash…

A: Date Cash Paid Interest Expense Change in Carrying value Carrying value 1-Jan-21       $382,187…

Q: Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2020, at 119.792 to yield 8%.…

A: a. Prepare journal entry for issuance of the bonds on January 1, 2020.

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. Explain the amount of the premium on these bonds at issuance.

Q: On January 1, 2021, Loop Raceway issued 590 bonds, each with a face value of $1,000, a stated…

A: An amortization bond is one in which the principal (face value) on the loan is paid regularly,…

Q: On March 1, 2021, BabyM company issued a four-year, P3,000,000 face value, 11% term bonds for…

A: Bonds issued at Premium: When a bond is issued at a premium, that means that the bond is sold for an…

Q: On January 1, 2021, Splash City issues $350,000 of 8% bonds, due in 15 years, with interest payable…

A: Solution 2: Journal Entries - Splash City Date Particulars Debit Credit 1-Jan-21 Cash…

Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…

A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

Q: On December 31, 2020, Balbond issued 3,000 of its 15-year 6%, P1,000 face value bonds for…

A: Lets understand the basics. For calculating carrying value of the bond, we will need use effective…

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

A: Upon initial recognition, the financial liabilities shall be measured at fair value. In general, the…

Q: On January 1, 2018, Loop Raceway issued 640 bonds, each with a face value of $1,000, a stated…

A: Bonds are referred to as fixed interest bearing instrument which represents a type of loan made by…

Q: On January 1, 2021, Callahan Auto issued $900,000 of 9%, 10-year bonds. Interest is payable…

A: Semiannual Stated interest rate=Annual rate2=9%2=4.5%

Q: The Windy City Company issued $500,000 of 12% bonds on January 1, 2020. The bonds were sold for…

A:

Q: Quatro Company issues bonds dated January 1, 2021, with a par value of $900,000. The bonds' annual…

A: When a corporation sells bonds to earn cash, bonds payable are recognized. The corporation is a…

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

A: a.

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

A: Gain on retirement of bonds is the difference between the net carrying value of the bond on the date…

Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…

A: Determine the price of the bond:   Present value of principle amount ($200,000, 4%, 10 years)…

Q: On January

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

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: Lassen Corporation issued ten-year term bonds on January 1, 2020, with a face value of $800,000. The…

A: Bond is an investment security with low risk and low return. A fixed rate of interest is attached…

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 September 1, 2021, Evansville Lumber Company issued $80 million in 20-year, 10 percent bonds…

A: Discount Amortization=Amount of bonds issued×Rate of interest×Number of monthPeriod of issuance…

Q: Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest…

A: The calculation is under step 2.

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $880,000. The bonds' annual…

A: Answer 1:

Q: On January 1, 2021, Dominguez Company issues 7-year bonds with a face value of $10,000,000 and a…

A: Face Value of bond = $10,000,000 Annual interest rate = 4% Market interest rate = 5% Cash proceeds…

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: Assume that on January 1, 2021, Water World issues $200,000 of 9% bonds, due in 10 years, with…

A: 1) Workings for the above calculations:

Q: Spiller Corp. plans to issue 6%, 9-year, $550,000 par value bonds payable that pay interest…

A: Number of periods = 9*2 Number of periods = 18   Market rate = 4%/2 Market rate = 2%   Coupon rate =…

Q: Stanford issues bonds dated January 1, 2019, with a par value of $250,000. The bonds' annual…

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

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, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable…

A: CALCULATION OF INTEREST AMOUNTS :   ON 30 JUNE , 2021 : = $360,000 X 7% X 1/2  =$12,600   ON 31 DEC…

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

A: Semiannual interest payment = Face value of bonds x rate of interest x 6/12 = $550,000 x 7% x 6/12 =…

Q: On January 1, 2021, Lizzy’s Lemonade issues 5%, 20-year bonds with a face amount of $100,000 for…

A: Given information is: On January 1, 2021, Lizzy’s Lemonade issues 5%, 20-year bonds with a face…

Q: On July 1, 2021, Swifty Satellites Corporation issued $1,400,000 of 10-year, 9% bonds to yield a…

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

Q: Spiller Corp. plans to issue 10%, 15-year, $500,000 par value bonds payable that pay interest…

A: Face Value of Bond = $500000 Coupon Rate = 10% per annum Coupon Amountfor 6 months = 500000*10% /2 =…

Q: On March 1, 2021, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of…

A:

Q: Stanford issues bonds dated January 1, 2019, with a par value of $500,000. The bonds’ annual…

A: Bond discount is defined as an amount through which the bond's market prices, which is lower as…