On January 2, 2017, $100,000 of 11%, 10-year bonds wereissued for $97,000. The $3,000 discount was charged toInterest Expense. The bookkeeper, Mark Landis, recordsinterest only on the interest payment dates of January 1and July 1. What is the effect on reported net income for2017 of this error, assuming straight-line amortization ofthe discount? What entry is necessary to correct for thiserror, assuming that the books are not closed for 2017?

Q: On January 1, 2014 Huff Co sold $4,000,000 of its 10% bonds for $3,541,184 to yield 12%. Interest is…

A: Interest Expense Interest expense are refer as the price which is charge by the lender on the use of…

Q: Day Company had bonds outstanding with a maturity value of $300,000. On April 30, 2020, when these…

A:

Q: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 8% bonds with a book value of…

A: A bond is the long-term debt of an entity. The bonds are paid in more than one year. The bonds…

Q: ssued on July 1, 2

A: The method which is used to discount and write off the bond in the books of the accounts is the…

Q: On January 1, 2018, Doty Co. redeemed its 15-year bonds of $7,000,000 par value for 102. They were…

A: Redmeption price = Bond Value * 102/100 Cash redeemed = 92/100 * bond Value

Q: On July 1, 2018, Gumshoo called for redemption all of its P1,000,000 face amount of bonds payable…

A: Redemption of Bond Bond is considered to be one of the debt instrument which are provided to the…

Q: On the first day of 2021, Rooney Inc had outstanding $1,000,000 of 9% bonds with a book value of…

A: Explanation: We should compare the amount we pay for the bonds and the book value of the bonds:…

Q: Ignoring interest, compute the gain or loss. Loss on redemption   $   Ignoring interest, record…

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

Q: Angelas Company issued a $500,000, 10 percent, 10-year bond on January 1, 2015, for 113.6 when the…

A: Bond Premium is amount received in excess of par value at issuance of bonds whereas Bond Discount is…

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: The Oriole Company issued $640,000 of 6% bonds on January 1, 2017. The bonds are due January 1,…

A: Issue of bond: Corporate bond issuance is one method of raising capital for a company. A bond serves…

Q: On January 1, 2020, Riverbed Corporation redeemed $400,000 of bonds at 96. At the time of…

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

Q: On January 1, 2021, Crane Company redeemed its 15-year bonds of $6900000 par value for 101. They…

A: Step 1: Compute the total discount on bonds payable: Total discount on bonds…

Q: On July 1, 2013, Elle Co. received $ 1,032,880 for $1,000,000 face amount, 12% bonds, a price that…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 1000000*12%*6/12 =…

Q: At the end of 2015, Majors Furniture Company failed to accrue $61,000 of interest expense that…

A:

Q: On January 1, 2017, Cullumber Company redeemed $490,000 of bonds at 103. At the time of redemption,…

A: Journal entry to record reacquisition of bond is as under:

Q: At the end of 2015, Majors Furniture Company failed to accrue $61,000 of interest expense that…

A:

Q: On June 1, 2019, Hansen Company purchased ten $1,000 Francisco Company bonds at par and classified…

A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

Q: On December 31, 2017, Evermore's Inc 's long-term obligation portion includes USD3,000,000 in 5-year…

A: Valuation of Bond

Q: Marigold, Inc., purchased $372,000 of its bonds at 95 on June 30, 2020, and immediately retired…

A: Bond's Payable = $372,000 Discount On Bond's Payable = $372,000 — $360,000 = $12,000   Cash =…

Q: On January 1, 2017, Henderson Corporation redeemed $500,000 of bonds at 99. At the time of…

A: Calculate the amount of cash paid to redeem the bond.

Q: Schwer, Inc. issued $500,000 of 10%, 15-year bonds at 95 on July 1, 2012. Interest is payable…

A: Bonds may be issued at discount when the interest on the bonds is higher than the market interest…

Q: Lorance Corporation issued $850,000, 9%, 10-year bonds on January 1, 2015, for $797,036. This price…

A: If the bonds are issued at price less than the face value then it is said to be issued at discount.

Q: The December 31, 2017, balance sheet of Ming Inc. included 12% bonds with a face amount of $107…

A: Solution: Journal entry is as under: Particulars Debit Credit Bond payable 107000000   Loss…

Q: On November 1, 2015, Davis Company issued a $30,000, 10-year, 7% bonds for $29,100. Interest is…

A: Total discount on bonds = Face value of bonds - issue value of bonds =  $30,000 - $29,100 = $900

Q: On January 2, 2020, $100,000 of 11%, 10-year bonds were issued for $97,000. The $3,000 discount was…

A: Prepare correcting entry:

Q: On May 1, 2010, Kirmer Corp. purchased $450,000 of 12% bonds, interest payable on January 1 and July…

A: Bonds are a form of debt or loan issued by the company, on which company has to make regular…

Q: On January 1, 2015, Buchheit Enterprises reported $95,000 in a liability called “Bonds Payable,Net.”…

A: We have the following information:  Reported $95,000 as Bonds Payable in Liability section of…

Q: On January 1, 2020, Bobond issued a 3-year, 9% P1,000,000 at par. Interest is payable semi-annually…

A: A bond seems to be a sort of financial instrument used by a business to borrow money. A bondholder…

Q: On January 1, 2020, Jupiter Company reported 9% bonds payable of P4,000,000 less unamortized…

A: Bonds refer to borrowing security that is issued by the company in order to raise funds from the…

Q: Laurance Corporation issued P 400,000, 7%, 20-year bonds on January 1, 2017, for P 360,7217 This…

A: Date Account Titles Debit Credit a )January 1, 2017 Cash $360,7217     Discount on Bonds Payable…

Q: On September 1, 2011, Park Rapids Lumber Company issued $80 million in 20-year, 10 percentbonds…

A:

Q: On June 30, 2016, King Co. had outstanding 9%, $5,000,000 face value bonds maturing on June 30,…

A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…

Q: On December 31, 2017, ABC Company had P1,000,000 of short term notes payable due February 7, 2018.…

A:

Q: On June 1, 2019, Hansen Company purchased twenty $1,000 Francisco Company bonds at par and…

A: As per US GAAP, an asset should be impaired if there are any circumstances which leads to reduction…

Q: Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2017, at 119.792 to yield 8%.…

A: Requirement a:   Pass necessary journal entry to record issue of bonds at premium.

Q: On December 1, 2017, Cone Company issued its 9%, $450,000 face value bonds for $520,000, plus…

A: Number of bonds=Total valueIssue price=$450,000$100=4,500

Q: The 10% bonds payable of Nixon Company had a net carrying amount of $760,000 on December 31, 2012.…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: On January 1, 2015, ABC Co, issued ten - year bonds with a face value of $ 1,000,000 and a stated…

A: Bonds: Bonds are the financial instruments that provide fixed income to its holder. They are issued…

Q: On January 1, 2016, a company issued $400,000 of 10-year, 12% bonds. The interest is payable…

A: The expense of borrowing money is known as interest expense. It appears on the income statement as a…

Q: Sandhill Company issued $2,400,000 of 10%, 10-year bonds on January 1, 2017, at 103. Interest is…

A: Solution:   Journal entries to record the transactions are as under:

Q: Prepare the corporation’s journal entry to record the reacquisition of the bonds.

A: Cash disbursements to redeem the bonds: = No. of Bonds x Redemption price Gain on the redemption of…

Q: On January 1, 2022, Huff Co. sold P1,000,000 of its 10% bonds for P885,296 to yield 12%. Interest is…

A: The bonds are the financial instruments for the business that are issued by business to raise money…

Q: On January 1, 2017, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

A:

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.