On the first day of the fiscal year, a company issues a $8,600,000, 10%, 6-year bond that pays semiannual interest of $430,000 ($8,600,000 × 10% × ½), receiving cash of $8,992,098. Journalize the first interest payment and the amortization of the related bond premium

Q: On January 1, the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond…

A: Bonds: Bonds can be defined as the debt securities issued for the purpose of raising capital for the…

Q: Discount AmortizationOn the first day of the fiscal year, a company issues a $6,700,000, 12%, 4-year…

A: Calculate the amount of discount provided on issue of bonds as follows:

Q: Premium Amortization On the first day of the fiscal year, a company issues a $1,900,000, 8%, 4-year…

A: Since interest payments will be made on semiannual  5 years × 2 = 10 payments to be made 8% / 2 = 4%…

Q: On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays…

A: Interest expense = Cash interest paid - premium amortized semi annually

Q: Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: On the first day of the fiscal year, a company issues a $8,600,000, 11%, 10-year bond that pays…

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

Q: Premium Amortization On the first day of the fiscal year, a company issues a $4,500,000, 7%, 6-year…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,300,000, 10%,…

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

Q: Journalize the first interest payment and the amortization of the related bond discount. Round to…

A: A bond is said to be issued at a discount when the buyer pays an amount which is less than the par…

Q: On the first day of the fiscal year, a company issues an $4,700,000, 10%, 9-year bond that pays…

A: Premium on bonds payable = Issue price - Face value of bonds

Q: Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells…

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

Q: On 1 April, year 1, Happy Corporation issues $50 million of 10%, 30-year bonds payable at par.…

A: Journal entry to record first cash payment to bondholders:

Q: Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells…

A: Note: "Since you have posted a question with multiple sub-parts, we will solve the first three…

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

A: Total premium on bonds = Total amount received - Face value of bonds = $520000 - $500000 = $20,000

Q: Discount Amortization On the first day of the fiscal year, a company issues a $1,500,000, 9%, 6-year…

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

Q: Amortization of a Bond Discount and Premium   On September 1, 2018, Evansville Lumber Company…

A: An amortized bond is one in which the principal (face value) on the debt is paid down regularly,…

Q: Yale Corporation issued to Zap Corporation $84,000, 8% (cash interest payable semiannually on June…

A: Journal entries serve as the foundation for various accounting operations such as ledger account…

Q: On the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond that pays…

A: Premium on issue of bonds = Cash received - Par value of bonds = $2,379,360 - $2,250,000 = $129,360

Q: $84,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and…

A: Journal entries form the basis for other accounting tasks such as ledger account preparation, trial…

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

A: Under straight line amortisation, the bond discount is amortised equally in each year.

Q: Bond Premium, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Premium…

A: When market interest rate is less than the coupon interest rate then bond is called as issued at…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,900,000, 8%,…

A: Discount amortization on bond: Bond discount amortization is the process of writing off a bond's…

Q: On the first day of the fiscal year, a company issues a $6,400,000, 6%, 9-year bond that pays…

A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…

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 the fiscal year, a company issues an $2,750,000, 8%, five-year bond that pays…

A: Interest is calculated as a percentage of the loan (or deposit) balance, which is paid to the lender…

Q: Amortization of a Bond Discount and Premium   On September 1, 2018, Evansville Lumber Company…

A: A bond is an instrument which represents a loan or a borrowing which is made by an investor to…

Q: Premium Amortization On January 1, the first day of the fiscal year, a company issues an…

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

Q: Amortization of a Bond Discount and Premium   On September 1, 2018, Evansville Lumber Company…

A: Amortization of a Bond Discount and Premium:- It means a bond issued amortize or divided among the…

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

A: Accounts title Debit Credit Interest Expense $55,775   Premium on Bonds Payable $2,425…

Q: Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells…

A: When a corporation prepares to issue/sell a bond to investors, the corporation might anticipate that…

Q: Wookie Company issues 6%, five-year bonds, on January 1 of this year, with a par value of $107,000…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,600,000, 10%,…

A:

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: Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Yale Corporation issued to Zap Corporation $120,000, 8% (cash interest payable semiannually on June…

A: A journal entry is a record of the a financial contract in the accounting system of a company.…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $9,000,000, 9%, 8-year…

A: Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.…

Q: Instructions On the first day of the fiscal year, a company issues a $2,750,000, 8%, five-year bond…

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

Q: Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells…

A: Since you have posted a question with multiple sub-parts , we will solve the first three sub-parts…

Q: 1.  Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on…

A: 1)   Debit Credit Cash 73,100,469   Premium on Bonds Payable   8,100,469 Bonds Payable…

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

A: Formula: Interest amount = Bond value x Time period x Interest rate

Q: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $110,000…

A: Solution A journal is a company's official book in which all business transaction are recorded on…

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 the first day of the fiscal year, a company issues a $7,200,000, 10%, 7-year bond that pays…

A: Given the face value of bond = $7,200,000 Life of bond = 7 years Semi annual interest = 360,000 Cash…

Q: On the first day of the fiscal year, a company issues a $584,000, 11%, 10-year bond that pays…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $4,600,000, 7%, 6-year…

A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $7,200,000, 10%, 7-year bond that pays…

A: Premium on Bonds Payable=Cash received-Bond Payable=$7,568,023-$7,200,000=$368,023