On January 2, 2020, $100,000 of 11%, 10-year bonds were issued for $97,000. The $3,000 discount was charged to Interest Expense. The bookkeeper, Mark Landis, records interest only on the interest payment dates of January 1 and July 1. What is the effect on reported net income for 2020 of this error, assuming straight-line amortization of the discount? What entry is necessary to correct for this error, assuming that the books are not closed for 2020?

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: Bramble Company issued $ 708,000 of  9%, 20-year bonds on January 1, 2020, at  101. Interest is…

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A: Long term debt is the item shown on the liabilities side of the Balance Sheet under the heading…

Q: Homwork question 5- chapter 9

A: Calculate the amount of interest expense:

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A:

Q: On June 1, 2020, Bramble Corp. issued $8,320,000, 6% bonds for $8,154,640, which includes accrued…

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

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A: Proceeds from issue of bonds = Face value of bonds x issue price /100 = $648000*104/100 = $673920

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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: On December 31, 2019, the liability section of Antonio Company's statement of financial position…

A: Solution Working note - Calculation of interest Accrued = P4000000*12%*3/12. =P120000.

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

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A: Interest expense is the expense which is payable on the borrowings like bonds, debentures etc.…

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A: a) Journal Entry     Debit$ Credit$ Bond payable 780,000   Loss on bond redemption (…

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A: When a bond is issued at a premium, that means that the bond is sold for an amount greater than the…

Q: The total long-term liabilities reported on the balance sheet are     $3261000.   $3248000.…

A: Long Term liabilities are those liabilities which are payable beyond 1 Year from the Reported date.

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

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Q: What amount of interest expense will be recorded in the December 31, 2021, annual income statement?

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A:

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

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A: If the carrying value of the bonds is more than the redemption value, then there will be gain on…

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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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A: $4,337,950 is the present value of bond. Yield is 12 %, semiannually.

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A: Bond: It is long-term source of finance issued by the firm to raise money. It has a fixed maturity…

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A: Prepare the amortization table for Ironman Steel\'s bonds:

Q: On January 1, 2020, Concord Company purchased at face value, a $1060, 10% bond that pays interest on…

A: The interest earned during period but not received during period is recorded as interest receivable.…

Q: Sheffield Company issued $648,000 of 10%, 20-year bonds on January 1, 2020, at 104. Interest is…

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A:

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

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A: Journal: Recording of a business transactions in a chronological order.

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Q: On December 31, 2020, the liability section of Martin Luther Company's statement of financial…

A:

Q: On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 9% bonds with a book value of…

A: Compare the amount paid for the bonds and book value then we get the loss To calculate book value,…

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

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A: Hi student Since there are multiple questions, we will answer only first question. For first…

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A: Investment in bonds yields interest at a fixed rate of return and also it can be purchased at…