On January​ 1, 2018​,  Lane Unlimited issues 15​%, 10​-year bonds payable with a face value of $180,000. The bonds are issued at 105 and pay interest on June 30 and December 31. Requirements: Journalize the semiannual interest payment and amortization of bond premium on December​ 31, 2018. Journalize the retirement of the bond at​ maturity, assuming the last interest payment has already been recorded.​ (Give the​ date.)

Q: A company issues 8%, two-year bonds on December 31, 2018, with a par value of $7,000 and semiannual…

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

Q: On January 1, 2018, Harvey Inc. issued $1,000,000 of 10 years, 6% bonds when the market 10%. The…

A: solution 1: Computation of bond price Table values are based on: n= 20     i= 5.00%…

Q: On the first day of the fiscal year, a company issues a $4,400,000, 7%, 8-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $4,800,000, 9%, 6-year bond that pays…

A: Formula: Interest expense = Bond face value x Interest rate x Time periods

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: 4. Chapter 9 Homework

A: Prepare journal entry to record the issuance of bonds:

Q: On January 1, 2021, for $18 million, BBCompany issued 10% bonds, dated January 1, 2021, with a face…

A: Effective interest method: The method of amortization that uses fixed interest rate (effective…

Q: On March 1, 2X19, Toyota Corporation issued at 103 plus accrued interest, 500 of its 9%, P500 bonds.…

A: Issuing bonds is one of the many ways for companies to raise money or funds. A bond works as a loan…

Q: On the first day of the fiscal year, a company issues a $4,600,000, 6%, 10-year bond that pays…

A: Discount on bonds payable = face value of bonds - Issue price = $4600000-3702451 = $897,549

Q: On the first day of the fiscal year, a company issues a $1,400,000, 10%, 7-year bond that pays…

A: Bond Premium is amortized can be amortized through Straight line method and Effective interest rate…

Q: On January 1, 20XX, Cisco Corporation issued a $600,000, 9%, 5-year bond for $576,834. The bonds…

A: Bond's discount or premium is caused due to difference between market rate and couporate.

Q: Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1,…

A: Interest payment on June 30, 2021 = Face value of bonds x rate of interest x 6/12 = $70,000 x 7% x…

Q: On the first day of the fiscal year, a company issues an $8,000,000, 11%, five-year bond that pays…

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

Q: On January 1, 2006, Wolf Company issued its 10% bonds in the face amount of P5,000,000, which mature…

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

Q: On June 30, 2020, Blossom Limited issued $2 million of 20-year, 13% bonds for $2,320,916, which…

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

Q: On January 1, 2018, Reese Incorporated issued bonds with a face value of $120,000, a stated rate of…

A:

Q: Journalize the first interest payment and the amortization of the related bond discount. Round to…

A: A bond is said to be issued at a discount when the buyer pays an amount which is less than the par…

Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid…

A:

Q: On the first day of the fiscal year, a company issues an $4,700,000, 10%, 9-year bond that pays…

A: Premium on bonds payable = Issue price - Face value of bonds

Q: On the first day of the fiscal year, a company issues an $302,000, 8%, 5-year bond that pays…

A: Under the straight line method of amortization, premium or discount of bond need to amortize equally…

Q: On January 1, 2006, Okon Company issued 5,000 of its 9%, P1,000 face value bonds at 95.  Interest is…

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

Q: Aggies Inc. issued bonds with a $550,000 face value, 10% interest rate, and a 4-year term on July 1,…

A: Bonds may sometime issue at premium and the amount of premium is amortized over the term of bonds.…

Q: PPetzelmaniá, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1,…

A: The bonds are issued at par when market rate is similar to coupon rate of bonds.

Q: Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $59,000 for $59,000 on January 1,…

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

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 the first day of the fiscal year, a company issues a $8,900,000, 8%, 5-year bond that pays…

A: Premium on bonds payable:  It occurs when the bonds are issued at a high price than the face value.

Q: On the first day of the fiscal year, a company issues a $5,100,000, 9%, 4-year bond that pays…

A: Bonds issued at discount: A bond said to be issued at discount when its issue price is less than…

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: n January 1, 2018 ABC Corporation issued a five-year $1,000,000, 8%, at $1,250,000. Interest is…

A: Effective Annual Interest Rate- Effective Annual Interest Rate is also known as effective interest…

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

A: a.

Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…

A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue of bond…

Q: On the first day of the fiscal year, a company issues an $994,000, 7%, 5-year bond that pays…

A: Total discount on bonds issue =  Face value of the bonds - Issue value of the bonds = 994000-934400…

Q: n January 1, 2006, Naruto Company issued its 10% bonds in the face amount of P5,000,000, which…

A: Adjusted unamortized bond premium at year end = Total bond premium - amortized bond premium for the…

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

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

Q: On September 1, Deutsch Limited issues 8%, 5-year bonds payable with a maturity value of OR 20,000.…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: On January 1, Martinez Inc. issued P 4,000,000, 11% bonds for P 4,260,000. The market rate of…

A: Working:

Q: Pharoah Inc. issues $4,500,000, 5-year, 14% bonds at 104, with interest payable annually on January…

A: An account title is essential when the accounting staff needs to identify an account, since the…

Q: On January 1, 2006, Naruto Company issued 5,000 of its 9%, P1,000 face value bonds at 95.  Interest…

A: The bonds are the financial instruments for the business which are used to raise money from the…

Q: On January 1, 2018, Lane Unlimited issues a 9%, 10- year bonds payable with a face value of…

A: Total premium on bonds = Issue value - Face value = $240,000 x 105/100 - $240,000 = $12,000

Q: On January 1, 2018, Nebal Manufacturing Corporation issued $5,000,000, 10%, 6-year bonds dated…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: On January 1, 2020, Ivanhoe Company issued $ 2,330,000, 9%, 10-year bonds at $ 2,486,345. This price…

A: Bonds are a form of loan or liability for the business, on which regular interest payments needs to…

Q: On January 1, 2021, Solo Inc. issued 1,300 of its 8%, $1,000 bonds at 97.7. Interest is payable…

A: The carrying value of the bond as on December 31, 2021 = Net Proceeds + First year discount…

Q: On January 2, 2021, YELLOW Co. issued 9% bonds in the amount of ₱1,000,000 which mature on January…

A: Analysis: In case of Bonds Calculation, Carrying amount of bonds payable as on date will be computed…

Q: A company issues 8%, two-year bonds on December 31, 2018, with a par value of $10,000 and semiannual…

A: Discount on Bond = par Value - Issue price                              = $10,000 -$9,600…

Q: Aggies Inc. issued bonds with a $450,000 face value, 8% interest rate, and a 4-year term on July 1,…

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

Q: Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1,…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On the first day of the fiscal year, a company issues a $7,200,000, 10%, 7-year bond that pays…

A: Premium on Bonds Payable=Cash received-Bond Payable=$7,568,023-$7,200,000=$368,023

Q: Super Splash issues $910,000, 7% bonds on January 1, 2021, that mature in 10 years. The market…

A: The bonds are issued at premium when market rate is lower than the current yield.

Q: On the first day of the fiscal year, a company issues a $3,200,000, 6%, 5-year bond that pays…

A: Bond :— Bond is a type of security which is issued to the party for the purpose of Enhance of…