On March 1, 2011, Fast Freight Company sold Rs. 400,000 of its 9 percent, 20-year bonds at 109.9. The semiannual interest payment dates are March 1 and September 1. The market interest rate is 8 percent. The firm's fiscal year ends August 31. Prepare entries in journal form to record the sale of the bonds on March 1, the accrual of interest and amortization of premium on August 31, and the first inferest payment September 1. Use the effective interest method to anmortize the premium.

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

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Q: On July 1, Year 1, Khatri Industries Inc. issued $18,000,000 of 10-year, 5% bonds at a market…

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A:

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Q: On January 1, 2015, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000,…

A: 1.

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A:

Q: On January 1 of the current year, Barton Corporation issued 9%, 5-year bonds with a face value of…

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A: Journal entry is a process of recording the business transaction in the books of accounts for the…

Q: Baron, Inc., issued $100,000 of its 8%, five-year bonds on January 1, 2016, at 98. Interest is paid…

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Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $300,000, 9%, 10-year…

A:

Q: On January 1 of the current year, Barton Corporation issued 7%, 5-year bonds with a face value of…

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Q: On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that pay interest…

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Q: On January 1 of the current year, the Barton Corporation issued 10% bonds with a face value of…

A: A bond is a fixed income instrument that represents a loan made by an investor to a borrower. Bonds…

Q: On January 1, Innovative Solutions, Inc., issued $160,000 in bonds at face value. The bonds have a…

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Q: On January 1 2017, Aumont Company sold 12% bonds having a maturity value of $500,000 for…

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Q: onds pay interest semiannually on June 30 and December 31. If the bonds are retired at the end of…

A: Amortization of bonds refers to the process in which the carrying value of the bond is adjusted with…

Q: On July 1, 20Y1, Danzer Industries Inc. issued $50,000,000 of 10-year, 8% bonds at a market…

A: Definition:

Q: On January 1 of the current year, Barton Corporation issued 10% bonds with a face value of $92,000.…

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Q: On April 1, 2016, Western Communications, Inc., issued 12% bonds, dated March 1, 2016, with face…

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A: So here in this case, When bond is purchased for less than its face value of bond then bond is known…

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Q: On February 1, 2009, Alpha Company issued 5,000 of its P1,000 face value bonds at 110 plus accrued…

A: Formula: Net amount received from the issuance of the bonds = Issue value of the bonds + Accrued…

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

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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: the current year, Barton Corporation issued 11%, 5-year bonds with a face value of $112,000. The…

A: Bond Discount Amortization Using the Effective Interest Rate Method When a bond is sold at a…

Q: On January 1, Year 1, Hart Company issued bonds with a face value of $103,000, a stated rate of…

A: The bonds are issued at premium means the bonds are issued at more value than face value of bonds.

Q: On January 1, 2018, Parker Company issued bonds with a face value of $63,000, a stated rate of…

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

Q: On October 1, 2010, Tender Corporation issued Rs. 500,000 of 9 percent bonds at 96. The bonds are…

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Q: On March 31, 2011, Gardner Corporation received authorization to issue $50,000 of 9 percent,30-year…

A: a. Prepare the journal entry at April 30, 2011 to record the sale of the bonds.

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A: Given the following information: On January 1 of Year 1, Drum Line Airways issued $3,770,000 of par…

Q: The Wilfred Company sold 8% bonds, dated January 1, with a face amount of $90 million on January 1,…

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

Q: Terry Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2011 with…

A: Bonds Payable - Bonds Payable is the liability for the company issued for a fixed period of time. It…

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Q: Debond Corp. issues £1,000,000 worth of fi ve-year bonds, dated 1 January 2010, whenthe market…

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

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A: Bonds :— It is one of the source of capital in which it's investors gets benefit of fixed periodic…

Q: On July 1, 2015, ARC Industries Corporation issued for cash $500,000 of 20%, 10 year bonds with…

A: Given,   July 1, 2015    20% Bond issued = $500000 Interest payable semi-annually @ January 1 &…

Q: On January 1, Topeka Outfitters issued $175,000 of 6%, 3-year bonds when the market rate of interest…

A: Given: Face value = $175,000 Years = 3 Coupon rate = 6% Interest rate = 10%

Q: On January 1, 2015, Loop Raceway issued 600 bonds, each with a face value of $1,000, a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: On July 1, 2018, Mason & Beech Services issued $33,000 of 10% bonds that mature in five years. They…

A: Interest payable on the bond is the amount payable on the bond by the bondholder at the coupon rate,…

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

A:

Q: a) April 1, 2011, to record the issuance of bonds b) September 30, 2011, to pay interest and to…

A: April 1, 2012 Cash A/c dr 16,000,000      To 20 year 10% Bond 16,000,000 (To record Issue of bonds)…