PA5. LO 13.3Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4- year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. July 1, 2018: entry to record issuing the bonds une 30, 2019: entry to record payment of interest to bondholders une 30, 2019: entry to record amortization of premium une 30, 2020: entry to record payment of interest to bondholders une 30, 2020: entry to record amortization of premium
Q: On January 1, 2009, Zero Co. issued its 10% bonds in the face amount of P4,000,000, which mature on…
A: Formula: Adjusted unamortized bond premium at December 31, 2009 = Total bond premium - Amortization…
Q: Help Seve & E On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1.000.000…
A: Par Value of the bonds = $1,000,000 Semi-annual Interest payment = 1,000,000 x 8% ÷ 2…
Q: On January 1, 2021, M&M company purchased P1,000,000, 12% bonds for P1,065,000, a price that yields…
A: Under Amortized cost method we use yield as interest rate for recognizing investment income
Q: 21. On January 01, 2019, SUNOD NA ANG LEASES LTD. issued 3- year bonds with face value of P5,000,000…
A: Given: Face value = P5,000,000 Price = 99% Nominal rate = 10% Issue cost = P150,000
Q: PA5. 13.3 Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year…
A: Under the Straight-Line Amortization Method, the premium or discount on bond is amortized equally…
Q: Prembond Corp. issues £1,000,000 face value of fi ve-year bonds, dated 1 January 2010,when the…
A: A typical calculation often used to discount or amortize a bond, is identified as the effective…
Q: BE11.1 (LO 2) Meera Ltd. issued 4,000, 8%, 5-year, £1,000 bonds dated January 1, 2020, at 100.…
A: Bonds are the financial instrument that is issued by the corporates to gather the debt funds from…
Q: On July 1, 2014, Oladipo Corporation issued 11% bonds in the face amount of P2,000,000 that mature…
A: Carrying value is present value of future cash flows discount @5%(10/2)
Q: P50,000. As of the end of the year, the bonds have a fair value of P5,960,000. What is the compound…
A:
Q: 15. Megan, Inc., sold $500,000 of its 9%, five-year bonds dated January 1, 2018, on May 1, 2018, for…
A: Following is the answer to the given question
Q: 2. On October 1, 2011, Sammy Company issued 8,000,000 of its 10-year 8% term bonds dated October 1,…
A: Solution Given Face value 8000000 Life 10 year Coupon rate 8% Market rate…
Q: 1. On January 1, 2011, Boyle Company issued 9% bonds in the face amount of P5,000,000 which nature…
A: The selling price of bonds will be equal to the present value of all future cash inflows.
Q: On January 1, 2016, Giant Company issued an 8% callable bond which has a par value of $200,000 for…
A: Solution A bond is a contract of debt whereby one party called the issuer borrows funds from another…
Q: In 2022, Dvorak Company issued $200,000 of bonds for $189,616. If the stated rate of interest was 6%…
A: Note: Under effective interest method, interest expense is calculated by multiplying the yield or…
Q: BE14.6 (LO 1) On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The…
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: On January 1, 2021, Mawi Co. issued 1,000, P4,000, 12%, 3 years bonds for P4,198,948. Principal is…
A: The question is based on concept of valuation of bond , value of bond is calculated as discounted…
Q: 4. On January 1, 2018, LJ Company issued 9% bonds in face amount of P8,000,000, which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.
Q: The premium on an outstanding 12% P5,000,000 bonds payable was amortized for P46,675 during 2023,…
A: Working note: Computation of interest rate:
Q: Q5: Romero issues $3,400,000 of 10%, 10-year bonds dated January 1, 2015, that pay interest…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Show your solution in good accounting form On January 2, 2021, YELLOW Co. issued 9% bonds in the…
A: Given that - YELLOW Co. issued 9% bonds having Par value of ₱1000000 The maturity date of bonds…
Q: 14. On January 1, 2012, London Company issued its 9% bonds in the face amount of P2.0 million which…
A: Bonds are a form of loan or debt that is being issued by the company, on which regular interest…
Q: On January 1, 2020, Lolo Company issued its 9% P9,000,000 face value bonds, which matures on January…
A:
Q: On January 1, 2019, SB Company issued its 10% bonds in the face amount of P10,000,000 that mature on…
A: Solution: Interest expense on July 1 = P9,160,000*12%*6/12 = P549,600 Semiannual interest paid =…
Q: Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30,…
A: Face value of bonds: $425,000,000 Issued Bonds: $361,772,495 Effective interest rate: 6% Interest…
Q: On March 1, 2014, Medium Corp. issued at 103 excluding accrued interest, 1,000 of its 15% , P 1,000…
A: A bond is a fixed-income instrument that represents a loan made by an investor to a borrower.
Q: On January 1, 2016, Truffle Corp. issued 9% bonds in the face amount of P 5,000,000, which maature…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: On January 1, 2016, Truffle Corp. issued 9% bonds in the face amount of P 5,000,000, which maature…
A: Interest expense = Issue price of the bonds x yield rate of interest x No. of months in calendar…
Q: On July 1, 2021, Sarah Company issued 4,000 8% bonds payable with P1,000 face amount for P3,504,000.…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: On January 1, 2020, Merry Company issued its 9% P9,000,000 face value bonds, which matures on…
A: Total discount on bonds issue = face value of bonds - issue value of bonds = P9,000,000 - P8,451,000…
Q: 3. On July 1, 2021, Glamorous Corporation issued 11% bonds in the face amount of P2,000,000 that…
A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = P2,000,000…
Q: 18. On January 1, 2020, Puckett Co. issued $50,000 of 8%, ten-year bonds at 98. Issuance costs…
A: In this question, loss on redemption shall be Loss on bond retainment =Redemption price of bond…
Q: On January 1, 2019, Whitmore Corp Issues $600,000 of 9% 15 year bonds that annually on December 31st…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On January 1, 2021, Relay Company issued a 3-year, 12% bonds with face value of P3,000,000. Interest…
A: Relay Company issued 3 year, 12% bond having face value P 3,000,000 on January 1, 2021. Effective…
Q: . On January 2, 2016, Santos Company issued 9% bonds in the amount of P10,000,000 which mature on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.
Q: On January 1, 2023, Wei Ling Company purchased bonds with face amount of P6250.000 for PS,950,000…
A: Calculation of Interest income for the year 2023:- P 714,000 is the correct answer Interest income…
Q: TMC issued $55 million of its 12% bonds on April 1, 2021 at 97, reflecting a market rate of interest…
A: Bond: Bond is a debt instrument used by a company to raise capital. It is also referred to as…
Q: Debond Corp. issues £1,000,000 face value of fi ve-year bonds, dated 1 January 2010,when the market…
A: A typical calculation often used to discount or amortize a bond, is identified as the effective…
Q: On January 1, 2021, Jackie Company issued 2,000 P5,000 8% five-year bonds at 90.35 when the market…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.
Q: 2. Downing Company issues P5,000,000, 6%, 5-year bonds dated January 1, 2021. The bonds pay interest…
A: Interest=Issue price×6%×612=P 5,000,000×6%×612=P 150,000
Q: 7) On January 1, 2016, Giant Company issued an 8% callable bond which has a par value of $200,000…
A: Retirement of Bonds: Retirement of bonds is the scenario where a company reacquires bonds which are…
Q: On January 1, 2020, Sunny Company issued its 9% P9,000,000 face value bonds, which matures on…
A: Total discount on bonds issue = face value of bonds - issue value of bonds = P9,000,000 - P8,451,000…
Q: On January 1, 2018, Kimber Company issued 9% bonds in face amount of P8,000,000, which mature on…
A: Annual interest payment = face value of bonds x rate of interest x no. Of months/12 = P8000000 x 9%…
Q: At the beginning of 2021, GROOT Corporation issued 10% bonds with a face value of ₱1,800,000. These…
A: Interest expense is the sum of cash expense incurred on payment of interest and amortization expense…
Q: 15. On Janvary 1,2020, ADra Company pulC! P5,000000 for P4,766000. The stated rate on the bonds is…
A:
Q: On January 2, 2021, YELLOW Co. issued 9% bonds in the amount of ₱1,000,000 which mature on January…
A: Analysis: In case of Bonds Calculation, Carrying amount of bonds payable as on date will be computed…
PA5
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Airplanes Unlimited purchases airplane parts from a supplier on March 19 at a quantity of 4,800 parts at $12.50 per part. Terms of the purchase are 3/10, n/30. Airplanes pays one-third of the amount due in cash on March 30 but cannot pay the remaining balance due. The supplier renegotiates the terms on April 18 and allows Airplanes to convert its purchase payment into a short-term note, with an annual interest rate of 9%, payable in six months. Show the entries for the initial purchase, the partial payment, and the conversion.Marx Corp. purchases 135 fax machines on credit from a manufacturer on April 7 at a price of $250 per machine. Terms of the purchase are 4/10, n/20 with an invoice date of April 7. Marx Corp pays in full for the fax machines on April 17. Create the journal entries for Marx Corp. to record: A. the initial purchase B. the subsequent payment on April 171. ABC Co sold merchandise to DEF Co for P120,000 and received P120,000 for that sale one month later. One week prior to receiving payment from DEF, ABC made a P20,000 payment to DEF for advertising services that have a fair value of P15,000. After accounting for any necessary adjustments, how much revenue should ABC record for the merchandise sold to DEF? * 2. Guardians Fund Managers Company sells two licenses to XYZ Company on September 1, 20x6. First in exchange for P400,000, the company provides XYZ with a copy of its proprietary investment management software, which the company does not anticipate updating and which XYZ can permanently use. Second, in exchange for P360,000, the company provides XYZ with a three-year right to market the company’s financial advisory services under the name of Guardians, which the company advertises on an ongoing basis. How much revenue will the company recognize in 20x6 under this arrangement? * 3. A department store sells a television set that was…
- 7. On 1 – 4 – 2018 Ms. Bushra Al Khair LLC buys 150 Apple phone @ 225 each from a local supplier. The supplier offers a trade discount of 5% on amounts in excess of RO 10,000 (i.e. the trade discount does not apply to the first RO 10,000). He is offered a 2.5% cash discount for immediate payment. What is the amount payable by Ms. Bushra Al Khair LLC assuming that if she makes payment after 3 months?E10-6A Advance Payment for Goods The Chicago Daily Times Corporation (CDT) publishes a daily newspaper. A 52-week subscription sells for $221. Assume that CDT sells 100 subscriptions on January 1. None of the subscriptions are cancelled as of March 31. Prepare a journal entry to record the receipt of the subscriptions on January 1. Prepare a journal entry to record one week of earned revenue on March 25.38) On December 1, 2019, Pinewood Company sold machinery to a customer for $2,000. Pinewood regularly sells machinery. The customer could not pay at the time of sale but agreed to pay 9 months later and signed a 9-month note at 12% interest. Prepare the journal entry to record the revenue at the time of sale. Ignore the entry for cost of goods sold. Omit explanation. 39) ABC Accepted a 90 day, 8%, $50,000 Note Receivable from from a customer to replace an Account Receivable. The note matured and ABC received $50,500 at maturity. Record the entry for the collection of the note receivable.
- EB9. 12.4 Airplanes Unlimited purchases airplane parts from a supplier on March 19 at a quantity of 4,800 parts at $12.50 per part. Terms of the purchase are 3/10, n/30. Airplanes pays one-third of the amount due in cash on March 30 but cannot pay the remaining balance due. The supplier renegotiates the terms on April 18 and allows Airplanes to convert its purchase payment into a short-term note, with an annual interest rate of 9%, payable in six months.Show the entries for the initial purchase, the partial payment, and the conversion. EB10. 12.4 Use information from EB9. Compute the interest expense due when Airplanes Unlimited honors the note. Show the journal entry to recognize payment of the short-term note on October 18H9.C6 On October 29, Lobo Company began operations by purchasing razors for resale. The razors have a 90-day warranty. When a razor is returned, the company discards it and malls a new one from Merchandise Inventory to the customer. The company's cost per new razor Is $20 and its retall selling price is $75. The company expects warranty costs to equal 8% of dollar sales. The following transactions occurred. November 11 Sold 105 razors for $7,875 cash. November 30 Recognized warranty expense related to November sales with an adjusting entry. December 9 Replaced 15 razors that were returned under the warranty. December 16 Sold 220 razors for $16,500 cash. December 29 Replaced 30 razors that were returned under the warranty. December 31 Recognized warranty expense related to December sales with an adjusting entry. January 5 Sold 150 razors for $11, 250 cash. January 17 Replaced 50 razors that were returned under the warranty. January 31 Recognized warranty expense related to January…26. On December 27, 20x1, XYZ received a sales order for a credit sale of goods with selling price of P45,000, with credit term on 5/10, n/30. The goods were shipped by XYZ on December 31, 20x1 and were received by the buyer on January 2, 20x2. He related shipping costs amounted to P4,500. The buyer XYZ collected the receivable on January 11, 20x2. If the shipping term is FOB destination, freight collect, the amount of cash received from the collection amounts to The correct answer is: 38,250
- On 4/2. Fresh Seafood Company purchases seasonings from customer for $500,000, payment terms are 3/10, 1/30 The company pays 70% of the price on 4/8 and the rest on 4/30. Assuming that the company adopts the net method, make a trial entry.1. On 9/20/22, Manhattan Trading shipped goods costing $200,000 to Queens Appliances Storeon consignment. The sales agreement states that Queens Appliances Store has 60 days to either sellthe goods or pay Manhattan Trading $300,000 for them or return the goods. Manhattan Trading usesthe perpetual inventory system.RequiredA. Original shipment of the goods to Queens Appliances store.B. Expiration of the 60-day period without the goods being returned by QueensAppliances Store.13-The buyer received an invoice from the seller for merchandise with list price of RO 3500 and credit terms of 3/EOM and n/60. The meaning of 3/EOM is a. If the buyer is not paid within the end of month, the entire invoice will be given 3% discount b. A buyer who pays by the end of the month of purchase may deduct RO 3500 c. A buyer who pays by the end of the month of purchase cannot deduct 3% discount d. A buyer who pays by the end of the month of purchase may deduct RO 105 discount