On May 1, 2010, Kirmer Corp. purchased $450,000 of 12% bonds, interest payable on January 1 and July 1, for $422,800 plus accrued interest. The bonds mature on January 1, 2016. Amortization is recorded when interest is received by the straight-line method (by months and round to the nearest dollar). (Assume bonds are available for sale.)   a) Prepare the entry for May 1, 2010.   b) The bonds are sold on August 1, 2011, for $425,000 plus accrued interest. Prepare all entries required to properly record the sale.

Q: On January 1, 2020, Blossom Company purchased $310,000, 6% bonds of Aguirre Co. for $284,855. The…

A: Under the effective interest method of amortization of discount or premium, the difference between…

Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Bonds:- A bond is a fixed income instrument that shows the loan amount paid by the investor to…

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

A: Given, Jan 01, 2016 8% 5 year Bonds issued @ discount ($98) Face value = $ 100000   April 01, 2018…

Q: On January 1, 2010, Rambutan Corporation purchased debt securities for cash of P765,540. The…

A: Rambutan Corporation purchased debt securities at P765,540 which carries the interest rate of 10%…

Q: Landis Company purchased $3,000,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2018, with…

A: Other comprehensive income=Fair value of bonds-(Sales value of bonds-Amortized premiums)

Q: On January 1, 2017, the board of directors of Papermaker Inc. issued 9-year, 2% bonds with a par…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2015, at a market…

A: Table presentation of each account Account (a) Financial Statement (b) Issuance (c ) Interest…

Q: Company P purchased $100,000 of subsidiary Company S’s bonds for $96,000 on January 1, 2015, when…

A:

Q: On January 1, 2018, West Company purchased $600,000 of 6%, 5-year bonds, as an available-for-sale…

A: Following is the journal entry for Interest Revenue on July 1, 2018.

Q: On October 1, 2006, Brick purchased 100 of the $1,000 face value, 8% bonds of Ice, Inc., for…

A: Purchase price, including interest 1,17,000 Less:-  accrued interest -2000 Carrying Value…

Q: Required: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b)…

A: Bonds: Bonds are the fixed income instrument that provide regular interest income to its holders. It…

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

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

Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face…

A: Solution A journal is used to record the business transation in chronological order. It has two…

Q: On March 1, 2011, Fast Freight Company sold Rs. 400,000 of its 9 percent, 20-year bonds at 109.9.…

A: Amortization Schedule Date Interest payment Interest Expense Amortization of premium Balance in…

Q: On January 1, 2022, Kindness Corp. issued 3,000 of its 5-year, P1,000 face value, 12% bonds dated…

A: The bonds are the long-term liabilities. When a company issues bonds and offers a coupon rate that…

Q: The Ripkin Company purchased 10%, $400,000 bonds of the Batter Up Company at par plus accrued…

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

Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face…

A: Golden Rules of Accounting : Account Type Debit Credit Personal Account the receiver the giver…

Q: On January 1, 2020, Sage Company purchased $270,000, 6% bonds of Aguirre Co. for $248,099. The bonds…

A: The procedure of recording business transactions for the first time in the books of accounts is…

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

A: 1.Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth’s…

Q: On January 1, 2016, Star Company received P107,720 for a P100,000 face amount, 12% bond, a price…

A: One of the source used by the business entities to meet their financial requirements is issue of…

Q: On January 1, 20x4, Mondragon Company purchased bonds with face value of P5,000,000 at a cost of…

A: Step 1 Initial recognize   is made at transaction price which is P 4, 700,000 which is transaction…

Q: On May 1, 2018, ABC Corporation purchased $1,500,000 of 12% bonds, interest payable on January 1 and…

A: Following are the Journal entries which are required to be pass in relation to sale:

Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face…

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

Q: What are the entries that reflect ABC Corporation’s transactions for the years 2015 and 2016?

A: cash payment = 1000000*111.5% + 1000000*15%*2/12 = 1140000   loss = 1200000-1110401= 9599

Q: Fowler Inc. purchased $75,000 of bonds on January 1, 2018. The bonds pay interest semiannually and…

A: Debt investments: The financial instruments which are bought by investors, or corporations, or…

Q: 1. Prepare the journal entries to record (a) issuance of the bonds by Western and (b) Stillworth’s…

A: Journal enteries on the issuance of Bonds for the organisation Western and stillworth organisation.

Q: On July 1, 2017, Wheeler Company purchased $4,000,000 of Duggen Company’s 8% bonds, due on July 1,…

A: Note – As the interest payment is semiannual interest revenue is divided by 2. Therefore $175000…

Q: Rumpi Company purchased $50,000 of 7 percent bonds of Evermistress Corporation on January 1, 2015,…

A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…

Q: On January 1, 2020, Aspin Company purchased $1,200,000, 14% bonds of Bulldog Company for $1,381,934,…

A: If the financial asset is measured at amortized cost, on the subsequent reporting date, the…

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 April 1, 2016, Lanz Company issued at 99 plus accrued interest, 200 of its 8%, P 1,000 bonds. The…

A: Bonds are the type of debt security issued by the company having a fixed percentage of coupon rate…

Q: Chowan Corporation issued $136,000 of 7% bonds dated January 1, 2016, for $131,421.73 on January 1,…

A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…

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: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…

A: Carrying value of bond = present value of all cashflows  Bond will mature December 31st, 2021 hence,…

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

A: Given that: Face value of bonds = $500,000 Issue price of bonds = 500,000 * 96% = $480,000 Discount…

Q: On January 1, 2017, the board of directors of Papermaker Inc. issued 9-year, 2% bonds with a par…

A: 2. Discount on Bonds Payable  = Face value of bonds x (100 - issue price) = $600,000 x (100 - 97%) =…

Q: On April 1, 2021, Western Communications, Inc., issued 12% bonds, dated March 1, 2021, with face…

A: Journal Entry: It is the act  of  recording  business transaction(either economic or non-economic)…

Q: On March 1, 2016, Brown-Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2016,…

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

Q: On October 2014, Nathan Company purchased a debt security having a face value of P 3,000,000 with an…

A: Calculation of Accrued Interest on the date of acquisiton (Oct 2014)  Interest on 10% bonds is…

Q: Stave Company invests $10,000,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds…

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

Q: On July 1, 2016, Pell Co. purchased Green Corp. 10-year, 8% bonds with a face amount of $500,000 for…

A: Effective interest rate method of amortization is a process of amortizing premium on bond or…

Q: On January 1, 2018, West Company purchased $600,000 of 6%, 5-year bonds, as an available-for-sale…

A: Bond is a debt insturment, which are issued to raise fund for the business. Bond is an interest…

Q: On January 1, 2010, Halston Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at…

A: Interest=Face amount×Interest rate2=$5,000,000×8%2=$200,000

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

A: