On January 1, 2021, White Water issues $440,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year. Required: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $440,000. Record the bond issue on January 1, 202 and the first two interest payments on December 31, 2021, and December 31, 2022. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Q: On January 1, 2021, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $360000 x…

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 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: 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 July 1, 2019, Honda Company issued 5,000 of the P1,000 face value, 8% bonds for P4,615,000 to…

A: Semiannual interest payment = face value of bonds x rate of interest x no. of months/12 = P5,000,000…

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, Mirada, Inc. issued five-year bonds with a face value of $100,000 and an annual…

A: Carrying cost is value of bonds which is shown in books of accounts

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: On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: On January 1, 2021, Lyle's Limeade issues 3%, 20-year bonds with a face amount of $78,000 for…

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

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: 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, 2021, Splash City issues $450,000 of 7% bonds, due in 10 years, with interest payable…

A: Solution;- Preparation of amortization schedules as follows:-

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: 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, 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: On January 1, 2021, Surreal Manufacturing issued 570 bonds, each with a face value of $1,000, a…

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

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, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Annual interest payment = Face value of bonds x rate of interest x time = $600,000 x 7% x 1 year =…

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, 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: 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 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 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, 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 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: 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: On July 1, 2019, Matalik Company issued 5,000 of the P1,000 face value, 8% bonds for P4,615,000 to…

A: Since effective interest rate method is being used.  As per effective interest rate method the…

Q: On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable…

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

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

A: Given information is: On January 1, 2021, Splash City issues $500,000 of 9% bonds, due in 20 years,…

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: 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: Calculate the value of the bond at the time of issuance, and record the initial journal entry.…

A: Bond valuation refers to a method which is used to compute the current value of future cash flow of…

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, 2021, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable…

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

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, 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: At the beginning of 2020, Leira Corporation issued 10% bonds with a face value of P 1,500,000. These…

A: Working:

Q: On January 1, 2021, Surreal Manufacturing issued 570 bonds, each with a face value of $1,000, a…

A:

Q: On January 1, 2021, Splash City issues $310,000 of 9% bonds, due in 20 years, with interest payable…

A: Annual Interest payment = 9%×$310,000=$27,900 The interest is to be paid semi-annually.  So, the…

Q: On July 1, 2019, Pen Co. issued 4,000 of its 8%, P1,000 face value bonds payable for P3,504,000. The…

A: Introduction: Bonds discount: When bonds are issued at less than its face value called bonds…

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 =…