On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market interest rate for bonds of similar risk and maturity is 9%, and the bonds issue for $841,464. Interest is paid semiannually on June 30 and December 31. Required: 1. Complete the first three rows of an amortization schedule. 2. Record the issuance of the bonds on January 1, 2021. 3. Record the 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, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds…

A: Requirement 1:

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

A: Bond interest: Bond interest is the interest payment that to be made to bond Holder. Generally a…

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, 2021, Splash City issues $390,000 of 7% bonds, due in 10 years, with interest payable…

A: The amortization schedule is prepared to record the interest payment, interest expense and carrying…

Q: Super Splash issues $870,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…

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

A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…

Q: On January 1, 2021, Splash City issues $370,000 of 9% bonds, due in 20 years, with interest payable…

A: A BOND ISSUE IS TYPE OF DEBT FORM OF FINANCING ON WHICH INTEREST IS PAID ON FIXED RATE OF THE FACE…

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 January 1, 2021, Splash City issues $320,000 of 8% bonds, due in 15 years, with interest payable…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $320000 x…

Q: On January 1, 2021, White Water issues $440,000 of 7% bonds, due in 10 years, with interest payable…

A: Solution: Date Particulars Debit Credit 01-Jan-21 Cash $440,000           To bonds payable…

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

A: SOLUTION- DISCOUNT ON BONDS IS THE DIFFERENCE BETWEEN THE ISSUE PRICE AND THE FACE VALUE OF BOND.…

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: 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, Skysong Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were…

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, Crane Ltd. issued $640,000 of 5%, 5-year bonds. The bonds were issued to yield a…

A: The process of recording financial activity for the first time in the books of accounts is known as…

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

A: Requirement 1:

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…

A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

Q: On January 1, 2020, Stellar Corporation issued $590,000 of 9% bonds, due in 8 years. The bonds were…

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

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: Bryan Company issued $780,000 of 8% face value bonds on January 1, 2019, for $763,800. The bonds are…

A:

Q: On January 1, 2021, Splash City issues $320,000 of 8% bonds, due in 15 years, with interest payable…

A: Entry to record the issuance of bonds payable.

Q: On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2,157,700. The bonds will…

A: Interest payment = $2,460,000*8% Interest payment = $196,800

Q: On January 1, 2019, Hackman Corporation issued $1,350,000 face value 8% bonds dated January 1, 2019,…

A: WORKING : PREMIUM ON BONDS PAYABLE = $1,366,900 - $1,350,000 = $16,900   JOURNAL ENTRY FOR ISSUANCE…

Q: Super Splash issues $1,000,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…

A: Given: Amount issued by Super Splash = $ 1,000,000 Percentage of bond on January 1, 2021 = 7 %…

Q: Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2019, that pay interest semiannually…

A: Since there are multiple sub parts, the calculation will be given for first three sub parts. To get…

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

A: 1. Workings: 600,000*7%*6/12= 21,000 Interest paid= 6% interest on carrying value for 6 months…

Q: On December 31, 2018, White Company issued $400,000 of five-year, 12% bonds payable for $430,887,…

A: Premium on bonds = Issue value - Face value = $430,887 - $400,000 = $30,887

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 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: Romero issues $3,400,000 of 10%, 10-year bonds dated January 1, 2019, that pay interest semiannually…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

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: 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, 2020, Grouper Corporation issued $480,000 of 7% bonds, due in 10 years. The bonds were…

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

Q: On January 1, 2021, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable…

A: Amortization schedule of loan: It can be defined as a table that shows the expense of interest,…

Q: On January 1, 2020, PS ind issued P600,000 of 7% bonds, due in 10 years. The bonds were issued for…

A: Introduction: Journal entries are the basis of double accounting rules, which have been used for…

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) Interest expenses (C) Amortisation on bond discount(C-B=D) Debit…

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, 2021, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable…

A: ISSUE OF BONDS Issue of bonds is one way out of many in which a company can raise funds. A Company…

Q: On January 1, 2021, Bradley Recreational Products issued $100,000, 9%, four year bonds. Interest…

A: Concept Given Date of issue January 1 2021 Face value 100000 Coupon rate 9%…

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

A:

Q: On January 1, 2018, loren inc. issued $2,000,000, 9%, 5-year bonds dated January 1, 2018, at…

A: Journal Entry - It is record of every business transaction in day to day life for a particular…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds' annual…

A: Premium on bonds at the time of issuance = Issue price of bonds - Face value of bonds