On January 1, $877,000, five-year, 10% bonds, were issued for $850,690. Interest is paid semiannually on January 1 and July 1. If the issuing corporation uses the straight-line method to amortize the discount on bonds payable, the semiannual amortization amount is a.$43,850 b.$26,310 c.$2,631 d.$5,262

Q: On June 30, Jamison Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: Payment of interest on December 31 = Face value of bonds x rate of interest x no. of months /12…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: Journal entry The basic process of accounting work is to journalize the required transaction into…

Q: The Marx Company issued $74,000 of 8% bonds on April 1 of the current year at face value. The bonds…

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Q: At the beginning of current year, Samal Company Issued P5,000,000 8% serial bonds, to be repaid in…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: SOLUTION- BONDS ARE INVESTMENT SECURITIES WHERE IN INVESTOR LENDS MONEY TO A COMPANY OR A GOVERNMENT…

Q: On the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to…

A: a.

Q: On January 1, 2020, $3,000,000, 10-year, 10% bonds, were issued for $2,910,000. Interest is paid…

A:

Q: On January 1, 2020, Latvia Company issued 3-year bonds with face amount of 5,000,000 at 98.…

A: Effective interest method is method used to recognise the interest expense for the year, when…

Q: On January 1, 2020, $2220000, 10-year, 10% bonds, were issued for $2126000. Interest is paid…

A: Amortization is a process of writing off the value of an asset during its life time gradually.

Q: An entity issued ten-year P1,000,000 debenture bonds at the beginning of the current year. The bonds…

A: The annual stated interest rate refers to the rate applied to the par value for the periodic…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

A: Total amount of premium = Issue price - Face value = $1,050,000 - $1,000,000 = $50,000

Q: On Janua

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

Q: On January 1, $932,000, 5-year, 10% bonds, were issued for $904,040. Interest is paid semiannually…

A: Solution: Discount on issue of bond = $932,000 - $904,040 = $27,960 Nos of semiannual periods = 5*2…

Q: Franklin Corporation issues $91,000, 10%, five-year bonds on January 1 for $95,100. Interest is paid…

A: Bonds are a form of debt or loan issued by the company. Regular interest payments needs to be made…

Q: On January 1, $925,000, 5-year, 10% bonds, were issued for $897,250. Interest is paid semiannually…

A:

Q: On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

A: The bonds are the financial instruments that are used to raise money from the market or investors.

Q: Franklin Corporation issues $98,000, 10%, five-year bonds on January 1 for $102,400. Interest is…

A: Compute the unamortized premium as of July 1.   Unamortized premium as of July 1 = Issue price of…

Q: On the first day of the fiscal year, a company issues a $2,000,000, 3.5%, 5-year bond that pays…

A: Journal entry means the entry in prime book with chronological order. Journal entry should have…

Q: On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for #5,773,129. The bonds…

A: The bonds are issued at premium when market rate is lower than the stated rate of interest on bonds.

Q: The Levi Company issued $78,000 of 11% bonds on January 1 of the current year at face value. The…

A: Semi-annual interest=Face value of bonds×Coupon rate×6 months12 months

Q: On January 1, $904,000, 5-year, 10% bonds, were issued for $876,880. Interest is paid semiannually…

A: SOLUTION- Semiannual Amortization Amount= 904000 * 10% * 6/12= 45200

Q: Franklin corporation issues $81,000, 8%, 5-year bonds on January 1, for $84,650. Interest is paid…

A: BOND IS A SECURITY UNDER WHICH THE DEBT PRINCIPAL AMOUNT IS REPAID ALONG WITH INTEREST OVER A…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…

Q: b. Record the entry for the purchase of the bonds by West Company on July 1. Date Account Name…

A:

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 6% bonds, with interest payable…

A: Premium on Bonds Payable = Issue price of bonds - Face value of bonds = $2,125,000 -$2,000,000 =…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $46,500 face value, a stated rate of…

A: Straight line method  amortization= Premium or discount/ number of period bond is outstanding.…

Q: Which of the following statements is true?

A: Answer:   Option a.

Q: On January 1, 2008, P5,000,000, 5-year, 10% bonds, were issued for P4,850,000. Interest is paid…

A: Bonds are form of debt or loan that is being issued by the business, on which regular interest…

Q: On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000.…

A: Given: Value of the bond = $ 2,500,000 Bond rate = 9 % Price of the bond = $ 2,580,000

Q: E Calculator On January 1, $2,000,000, 5-year, 10% bonds, were issued for $1,960,000. Interest is…

A: Compute total amortization amount on the bond as shown below:

Q: What is the entry to record the first semiannual interest payment, and the amortization of the bond…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P4,800,000. The bonds…

A: Journal Entry: Any transactions either economic or non-economic are recorded through  journal entry…

Q: On January 1, $858,000, 5-year, 10% bonds, were issued for $832,260. Interest is paid semiannually…

A: When the issue price is less than the face value of bonds the bonds are said to be issued on…

Q: On January 1, $2,000,000, 5-year, 10% bonds, were issued for $1,960,000. Interest is paid…

A: Bond is a financial instrument used by financial institutions to raise funds. It is a security for…

Q: On the first day of the fiscal year, a company issues a $6,800,000, 8%, 10-year bond that pays…

A: Bonds are the instruments that are being issued for the purpose of raising finance. These are the…

Q: On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at pa…

A: Interest amount needs to be properly recorded in the books of the company as and when it was accrued…

Q: On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

A: Solution: S.no  Particulars Debit Credit (a)  Cash A/C Dr.  $1,225,000     Discount on bonds…

Q: On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market…

A: Interest expense = Issue price * Market rate * Time

Q: On January 1, 20x6, SAM COMPANY. issued 3-year bonds with a face value of P3,000,000 for P2,850,756.…

A: The interest expense is the cost which a firm is required to pay for the amount borrowed in the form…

Q: On July 1 of the current year, West Company purchased for cash, 40, $10,000 bonds of North…

A: SOLUTION-   WORKING- 1- PRESENT VALUE OF PRINCIPLE AT 3% AND 6 PERIODS = 40 *10000*0.8375…

Q: Record the entry for the purchase of the bonds by West Company on July 1.

A: Computation of bond price  Present value of bond = Cash inflow for each period x PVIFA ( i, t) +…

Q: On the July 1, 2021, Trials Corporation issued $17,500,000 of five-year, 12% bonds to finance its…

A: Bonds are issued to generate funds. When the contract rate of interest is more than the market rate…

Q: Franklin corporation issues $86,000, 10%, 5 year bonds on January 1st for $89,900. Interest paid…

A: When interest is paid semi-annually, rate would become half.

Q: On January 1, $834,000, 5-year, 10% bonds, were issued for $808,980. Interest is paid semiannually…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On January 1, $954,000, 5-year, 10% bonds, were issued for $925,380. Interest is paid semiannually…

A: Discount = Face value - Issued amount = $954000-925380 = $28620 Term of bonds = 5 years i.e 10…

Q: A corporation issues for cash $1,000,000 of 8%, 20-year bonds, interest payable annually, at a time…

A: The bonds payable are issued at premium when market rate is lower than the coupon rate of bonds…

Q: On January 1, 20x8, James Corporation issued $500,000, 10%, 5-year bonds, at 98. The bonds pay…

A: When any bond is issues at less than its face value then it is called bond issued at discount while…

Q: Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid…

A: Total amount on premium on bonds issue = Issue price - Face value of bonds = $52,100 - $50,000 =…

Q: On February 1, Clayton Co. issued $1,300,000 of 20-year, 9% bonds for $1,225,000. Interest is…

A: Introduction: The act of recording or keeping track of any financial or non-financial action is…

Q: n July 1 of the current year, West Company purchased for cash, 8, $10,000 bonds of North Corporation…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…