On January 1, 2022, the Meade Group issued $8,000,000 of 11% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in four years. The market yield for bonds of similar risk and maturity is 10%. Required:   Determine the price of the bonds to yield the 10% market rate. Prepare an amortization schedule that determines interest at the effective rate and records interest on the first interest date, June 30, 2022. Prepare the journal entries for 2022.

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, 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, 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, 2018, Ling Services issued​ $168,000 of​ six-year, 12% bonds when the market interest…

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

Q: On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay interest…

A: Market Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: On January 1, 2018, Piper Co. issued ten-year bonds with a face value of $6,000,000 and a stated…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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

A: Step 1: Introduction Carrying Value of Bond:  The carrying values of a bond represent the combined…

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 January 1, 2021, Surreal Manufacturing issued 590 bonds, each with a face value of $1,000, a…

A: Journal is the primary book where transactions are originally recorded. Further, a journal entry is…

Q: On January 1, 2022, Broncos Universal issued 12% bonds dated January 1, 2022, with a face amount of…

A: Bond Price :— It is sum of present value of periodic interest payment and face value amount.    If…

Q: Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on…

A: Requirement 1:

Q: On January 1, 2022, a company issued serial bonds with a face value of P3,000,000 and stated rate of…

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

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 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: At the beginning of 2020. Wallace Corporation issued 10% bonds with a face value of P900,000. These…

A: Interest expense is the outlay incurred by an entity due to borrowing of notes or issue of bonds or…

Q: On January 1, 2020, Garner Hot Rods issued $2,000,000 of 6%, 10-year bonds. Interest is payable…

A: Compute coupon payment for six months period as shown below:

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

A: Discount on bonds payable = $ 600000 - $ 544795 = $ 55205

Q: On January 1, 2020, Ellison Co. issued eight-year bonds with a face value of $6,000,000 and a stated…

A: A bond is a fixed obligation to pay that is offered to investors by a company or government…

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 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 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, Ivanhoe Ltd. issued bonds with a maturity value of $7,900,000 when the market…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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, Sheridan Co. issued ten-year bonds with a face value of $4,500,000 and a stated…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July…

A:

Q: On January 1, 2022, Patrick Company purchased serial bonds with face amount of P3,000,000 and stated…

A: Purchase price of serial bond = Present value of annual interest  payments  discounted at Yeild per…

Q: Colwood Candies issued $370,000 of 12%, five-year bonds on January 1, 2020, when the market interest…

A: Amortization schedule is the one which is prepared to record the interest incurred during a period,…

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, BLITZEN Company issued 10% bonds dated January 1, 2021 with a face amount of…

A: Given information Face value of bond = P 8,000,000 Life of bond = 6 years Number of periods = 6 x…

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

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

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: Date General Journal Debit Credit January 01, 2021

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

Q: On June 1, 2019, Bramble Company sold $3,120,000 in long-term bonds for $2,736,600. The bonds will…

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to…

Q: Myriad Solutions, Inc. issued 10% bonds, dated January 1, with a face amount of $320 million on…

A: Complete the table below to calculate the amounts related to the bonds that Myriad would report in…

Q: On January 1, 2021, Cheyenne Co. issued ten-year bonds with a face value of $4,700,000 and a stated…

A: Calculate the issue price of the bonds.

Q: On January 1, 2020, Bonita Industries issued eight-year bonds with a face value of $5950000 and a…

A: Present value of principal = Face value of the bonds x Present value factor at market rate

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 January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a…

A: Journal entry is a primary entry that records the financial transactions initially.

Q: On January 1, 2021, LMN Company issued 10-year bonds with a face amount of P3,000,000 at a stated…

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

Q: Myriad Solutions, Inc. issued 10% bonds, dated January 1, with a face amount of $320 million on…

A: 1.Net amount of liability reported in balance sheet of December 31,2021:

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

A:

Q: On January 1, 2017, Babb Trailers, Inc. issued $6,500,000 of par value bonds for $6,200,000. The…

A: If the Bonds are issued on Discount then Carrying Value of Bonds will be Face Value  - Unamortized…

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

A:

Q: On January 1, 2018, Wawatosa Inc. issued 10-year bonds with a face value of $200,000 and a stated…

A: When the interest rate on the bond is higher than the market interest rate, they are always issued…

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 January 1, 2021, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $210,000.…

A: 1. The journal entry to record the purchase of the bonds: Formulation: