On September 30, Jose’s Jalapenos Inc., issued $1,000,000 of 10-year 9% bonds sated September 30, for $1,067,950 an effective (market) rate of 8%. Interest is payable semi-annually on October 1 and April 1. The bonds were purchased by Juan’s Junk and Basura Inc. Present the entries to record the following transactions for the current year on BOTH sets of books: (Issuing Corporation and Investor) Issuance of bonds Accrual of interest and amortization for the period ended December 31. Use the effective interest method for the amortization not the straight-line method. Redemption of the bonds on January 1 at 102.

Q: On January 1, the first day of the fiscal year, a company issues a $650,000, 10%, 10-year bond that…

A: Bonds Payable: Bonds payable are generated when a company issues bonds to generate cash. As a bond…

Q: The Levi Company issued $100,000 of 12% bonds on January 1 of the current year at face value. The…

A: When bonds issued at par, there is no amortization of discount or premium required.

Q: On January 1, Elias Corporation issued 7% bonds with a face value of $94,000. The bonds are sold for…

A: Bonds will pay fixed amount of interest on face value of the bond on monthly/ quarterly/ half…

Q: On January 1, Remington Corp issued $500,000 of 15-year, 10% bonds payable, yielding an effective…

A:

Q: On the first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays…

A: Journal entries refer to recording/ classifying the business transactions into books of accounts…

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

A: Total amount of premium = Issue price - Face value = $1,050,000 - $1,000,000 = $50,000

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable…

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

Q: On January 1, Elias Corporation issued 9% bonds with a face value of $88,000. The bonds are sold for…

A: Capital raising sources are: Issue of shares Issue of debt securities Raise funds from financial…

Q: On March 1, Sullivan Inc. issued $700,000 of 10-year, 11% bonds at an effective interest rate of…

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

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 the first day of the fiscal year, a company issues a $2,000,000, 3.5%, 5-year bond that pays…

A: Journal entry means the entry in prime book with chronological order. Journal entry should have…

Q: The Levi Company issued $78,000 of 11% bonds on January 1 of the current year at face value. The…

A: Semi-annual interest=Face value of bonds×Coupon rate×6 months12 months

Q: On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued…

A: Hey, since there are multiple sub-parts are posted, we will answer first three sub-parts. If you…

Q: On July 1, Year 1, Khatri Industries Inc. issued $43,200,000 of 10-year, 4% bonds at a market…

A: Journal entries means the entries to be recorded in the accounting books of the business for all the…

Q: On the first day of its fiscal year, Ebert Company issued $20,000,000 of 5-year, 11% bonds to…

A: Under the Effective interest method, the Bond issue shall be valued at the present value of Bond…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries are used to record accounting transactions of the business and involves an debit in…

Q: On January 1, Elias Corporation issued 8% bonds with a face value of $74,000. The bonds are sold for…

A: Interest expense 1st year= face value *8% = $74, 000 *8% =$5920

Q: On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market…

A: 1.

Q: On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that…

A: Requirement a:Prepare the journal entry to record issuance of the bonds.

Q: Emerald, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries is a process of recording various transactions in a chronological order. It is…

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: Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid…

A: Bond issued = $50,000 Interest rate on bond = 10% Number of years = 5 year Cash received = $52,100

Q: the current fiscal year (for the issuer’s books):   (a) Issuance of the bonds. (b) First annual…

A: No. Particulars  Debit Credit a         Cash 2125000     Premium on bonds payable   125000…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: On January 1, Year 1, Bell Corporation issued $203,000 of 10-year, 6 percent bonds at their face…

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or…

Q: On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

A: Solution: S.no  Particulars Debit Credit (a)  Cash A/C Dr.  $1,225,000     Discount on bonds…

Q: On January 1, 20x6, SAM COMPANY. issued 3-year bonds with a face value of P3,000,000 for P2,850,756.…

A: The interest expense is the cost which a firm is required to pay for the amount borrowed in the form…

Q: [The following information applies to the questions displayed below.] On April 1, year 1, Cricket…

A: Bonds are a form of debt or loan issued by the company. Business has to make regular interest…

Q: On the first day of its fiscal year, Ebert Company issued $23,000,000 of 5-year, 8% bonds to finance…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.

Q: Matt Perry, Inc. had outstanding $6,000,000 of 11% bonds (interest payable July 31 and January 31)…

A: Step 1: Journal entry for recording the issuance of bonds: The above entry is recorded for the…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Bonds: Bonds are securities issued by a company to raise money from the public. It is as good as…

Q: On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $6,600,000…

A: Answer 1:   Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

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 July 1, Year 1, Danzer Industries Inc. issued $37,400,000 of 10-year, 11% bonds at a market…

A: Bonds defined as the units of the corporate debt issued through the companies as well as securitized…

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

A: Bonds: It is also known as a fixed-income security, which is a debt instrument created for the…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Bonds: It is also known as a fixed-income security, which is a debt instrument created for the…

Q: On the first day of it's fiscal year, Ebert Co. issued $11,000,000 of 10-year, 7% bonds to finance…

A: An amortization schedule is a schedule showing the periodic debts, their interest expenses, the…

Q: Franklin corporation issues $86,000, 10%, 5 year bonds on January 1st for $89,900. Interest paid…

A: When interest is paid semi-annually, rate would become half.

Q: . On December 1, 20x1, AVS Company issued 10% bonds with a face amount of $20 million. The bonds…

A: As per the given information: Bonds issued - 10% bonds - $20 million Maturity - 5 years Market yield…

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 6% bonds, with interest payable…

A: Given: Value of the bond = $ 2,000,000 Bond rate = 6 % Price of the bond = $ 2,125,000

Q: What amount did Mountain receive from the bond issuance?

A: Given: No of Bonds Issued 200 Face Value  ₱1,000 Issued at premium of 1% Rate of Interest 9%…

Q: On the first day of its fiscal year, Ebert Company issued $25,000,000 of 5-year, 9% bonds to finance…

A: Solution a:       Journal Entries - Ebert Company Date Particulars Debit Credit Jan 1, Year 1…

Q: On July 1, Year 1, Danzer Industries Inc. issued $47,500,000 of 10-year, 10% bonds at a market…

A: The bond is considered as an instrument which is issued, when the loan is made to the borrower by…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries are used to record various transactions which was performed by the business during…

Q: On January 1, the Kings Corporation issued 10% bonds with a face value of $98,000. The bonds are…

A: Bond interest expense = Cash payment of interest + Amortization of discount = 98000*10% + 196 =…

Q: On January 1 of the current year, the Barton Corporation issued 6% bonds with a face value of…

A: A bond is a borrowing security issued by a company to raise funds from the market by making an…

Q: On 01-01-18, O issued $8,000,000 of its 4%, 6-year callable term bonds dated 01-01-18. The bonds pay…

A: Given: On 01-01-18, O issued $8,000,000 of its 4%, 6-year callable term bonds dated 01-01-18. The…

Q: n July 1 of the current year, West Company purchased for cash, 8, $10,000 bonds of North Corporation…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…