On the first day of its fiscal year, Jacinto Company issued $14,700,000 of five-year, 8% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Jacinto Company receiving cash of $14,118,450. a. Journalize the entries to record the following: 1. Issuance of the bonds. 2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. 3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment. If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar. 1. 2. 3. b. Determine the amount of the bond interest expense for the first vear. Round your answer to the nearest dollar.

Q: On January 1, a company purchased 3%, 20-year corporate bonds for $69,033,776 as an investment. The…

A:

Q: On the first day of its fiscal year, Chin Company issued $27,500,000 of five-year, 8% bonds to…

A: Formula: Interest expense = Bond face value x Interest rate x Time period

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: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd Co. issued…

A: Solution: A bond is a financial debt instrument so it requires its issuing company to pay periodic…

Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…

A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300

Q: Issuance of the bond  First annual interest payment (record as separate entry from premium…

A: Working: Premium on Bonds Payable = Issue price of bonds - Face value of bonds = $2,125,000…

Q: On the first day of its fiscal year, J Co. issued $1,000,000 of five-year, 8% bonds to finance the…

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

Q: On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to…

A: When the bonds are issued at coupon rate lower than market rate, they are usually issued at…

Q: On the first day of its fiscal year, Chin Company issued $14,100,000 of five-year, 5% bonds to…

A: Bonds refer to the security issued by government or companies to collect funds. Bonds can be issued…

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

A: The bonds are the financial instruments that are used to raise money from the market or investors.

Q: On the first day of its fiscal year, Chin Company issued $13,300,000 of five-year, 9% bonds to…

A: Bond is defined as the instrument of fixed income as they paid the fixed rate of interest or coupon…

Q: On the first day of the current fiscal year, $200,000 of 10-year, 7% bonds, with interest payable…

A:

Q: Rushton Corp., a wholesaler of music equipment, issued $15,710,000 of 20-year, 8% callable bonds on…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

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: The Levi Company issued $94,000 of 8% bonds on January 1 of the current year at face value. The…

A: Semiannually interest payment = Face value of bonds x rate of interest x 6/12 = $94000 x 8% x 6/12 =…

Q: On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to…

A: Requirement a.1, a.2 and a.3:

Q: Rushton Corp., a wholesaler of music equipment, issued $3,650,000 of 20-year, 14% callable bonds on…

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

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

A: Premium on Bonds Payable = Issue price of bonds - Face value of bonds = $2,125,000 -$2,000,000 =…

Q: Rushton Corp., a wholesaler of music equipment, issued $17,800,000 of 15-year, 12% callable bonds on…

A: Interest expense on sept 1, 20Y1 = face value of bonds x rate of interest x no. of months/12 =…

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

A: 1.Journalize the entries to record the transactions.

Q: On the first day of its fiscal year, Ebert Company issued $12,500,000 of 10-year, 7% bonds to…

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

Q: On the first day of its fiscal year, Chin Company issued $21,300,000 of five-year, 4% bonds to…

A: Interest expense= Issue value of the Bonds x market interest rate x no. of months / 12 Interest…

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: On the first day of its fiscal year, J Co. issued $1,000,000 of five-year, 8% bonds to finance the…

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

Q: On the first day of its fiscal year, Chin Company issued $19,500,000 of five-year, 6% bonds to…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co.…

A:

Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley…

A: a. Prepare the journal entry to record the issuance of bonds on April 1.

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

A: 1.Prepare journal entry to record the amount of cash proceeds from the issuance of the bonds on July…

Q: On the first day of its fiscal year, Chin Company issued $15,300,000 of five-year, 8% bonds to…

A:

Q: On January 1, the first day of its fiscal year, Jacinto Company issued $6,500,000 of six-year, 7%…

A:

Q: On the first day of the fiscal year, a company issues a $2,500,000, 4%, five-year bond that pays…

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

Q: On the first day of its fiscal year, Chin Company issued $23,100,000 of five-year, 9% bonds to…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…

Q: On the first day of its fiscal year, Simon Company issued $2,500,000 of 5-year, 10% bonds to finance…

A: The bonds are issued at discount when market interest rate is higher than the stated rate of…

Q: On the first day of its fiscal year, Chin Company issued $12,700,000 of five-year, 11% bonds to…

A: Journal entries are defined as recording of the business transactions into the books of accounts of…

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: O’Halloran Inc. produces and sells outdoor equipment. On July 1, Year 1, O’Halloran Inc. issued…

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

Q: First semiannual interest payment. The bond discount amortization is combined with the semiannual…

A: Journalizing transactions is the practise of maintaining a record of all your company's transactions…

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: The Levi Company issued $200,000 of 12% bonds on January 1 of the current year at face value. The…

A:

Q: On the first day of its fiscal year, Chin Company issued $27,500,000 of five-year, 8% bonds to…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: On January 1 of the current year, a company issued 5-year 10% bonds with a face amount of…

A: If the bonds were designated at fair value means then the carrying amount of the bonds is…

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: On the first day of the fiscal year, a company issues an $609,000, 10%, five-year bond that pays…

A: Record the first interest payment and amortization on Discount on payable

Q: On January 1, the first day of its fiscal year, Jacinto Company issued $18,400,000 of five-year, 12%…

A: Bonds refers to the debt instrument issued by a corporate company to raise funds. It is an asset for…

Q: On January 1, the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7%…

A: A.