On the first day of its fiscal year, Simon Company issued $2,500,000 of 5-year, 10% bonds to finance its operations of producing and selling video equipment. Interest is payable semiannually. The bonds were issued at an effective interest rate of 12%, resulting in Simon Company receiving cash of $2,316,011 a. Journalize the entries to record the following: 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of discount. 3. Second semiannual interest payment, including amortization of discount. b. Compute the amount of the bond interest expense for the first year.

Q: On July 1, Year 1, Danzer Industries Inc. issued $48,800,000 of 10-year, 9% 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, a company purchased 3%, 20-year corporate bonds for $69,033,776 as an investment. The…

A:

Q: 1.Journalize the entries to record the foregoing transactions. Round all amounts to the nearest…

A:

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

A: Coupon rate = 5%/2 Coupon rate = 2.5%   Market rate = 6%/2 Market rate = 3%   Number of periods =…

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

A: Given that  following details are the transactions of Winklevoss Inc. Journal entries it is the…

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

A: Journal entries refers to the recording or the posting of the business transactions into the books…

Q: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…

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

Q: On the first day of its fiscal year, Chin Company issued $17,000,000 of five-year, 11% bonds to…

A: Discount on Bonds Payable  = Face value of bonds - Issue price = $17,000,000 - $15,777,966 =…

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

A: Bonds are the debt financial instrument issued by the company to raise the funds and in return…

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 April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bonds at a market interest…

A: a. Issuance of the bonds on April 1, Year 1: Date Accounts title and explanation Debit ($) Credit…

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 January 1, the first day of the fiscal year, a company issues an $800,000, 4%, 10-year bond that…

A: BondA bond is an instrument evidencing a debt which is issued for the purpose of raising money…

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 the first day of its fiscal year, Chin Company issued $20,300,000 of five-year, 11% bonds to…

A: Bonds is one of the important  liability of the business, on which regular interest payments needs…

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

A: Year1       July        1   Cash                                       $69,552,279…

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 the fiscal year, a company issues a $888,000, 6%, 10-year bond that pays…

A:

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: Rushton Corp., a wholesaler of music equipment, issued $11,000,000 of 20-year, 9% callable bonds on…

A: Bonds are the method of raising finance for the business entity. It is considered as a cheaper…

Q: 20Y1   Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the…

A: Bonds are one way for companies to raise capital. A bond is a loan between an investor and 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: a.  Journalize the entries to record the following: Issuance of the bonds. First semiannual…

A: Given: Price of the bond issued = $ 10,000,000 Rate of the bond = 7 % Interest rate = 8 % Cash…

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: Hoover Corp., a wholesaler of music equipment, issued $16,700,000 of 15-year, 11% callable bonds on…

A: Bonds are kind of loan on which interest is paid and redeemed after certain period of time.

Q: On January 1 of the current year, a company paid $200,000 cash to purchase 10%, 10-year bonds, with…

A: Journal entry shows the recording of transactions during an accounting year and every transaction…

Q: On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market…

A: Interest expense = Issue price * Market rate * Time

Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: On the first day of its fiscal year, Chin Company issued $17,000,000 of five-year, 11% bonds to…

A: Discount on Bonds Payable  = Face value of bonds - Issue price = $17,000,000 - $15,777,966 =…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Bond is defined as the financial instrument which represents a debt security through which the…

Q: b. First interest payment on October 1, Year 1, and the amortization of bond premium for 2 months,…

A: Bonds:   Bonds are the financial debt instruments issued by the corporations to raise capital for…

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

A: a.

Q: Rushton Corp., a wholesaler of music equipment, issued $11,000,000 of 20-year, 9% callable bonds on…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

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

A: Bond is defined as a debt instrument or debt security. The bond issuer raises capital by issuing…

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

A: Bonds: These are financial instruments issued by the company to the public, to raise funds. Periodic…

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: Daan Corporation wholesales repair products to equipment manufacturers. On March 1, 2010, Daan…

A: The straight-line method of amortization represents the equal allotment of the premium or discount…

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: Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on…

A: Answer - Calculations :  Interest Exp - 22000000*7%*1/2 = 770000

Q: On the first day of its fiscal year, Jacinto Company issued $14,700,000 of five-year, 8% bonds to…

A: As posted multiple sub-parts we are answering only first three-day sub-parts kindly repost the…

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

A: Discount on bonds payable = $200,000 - $191,000 Discount on bonds payable = $9,000   Number of…

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

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

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…