Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000 and semiannual interest payments. Use the following bond amortization table and prepare journal entries to record (a) the issuance of bonds on January 1, (b) the first interest payment on June 30, and (c) the second interest payment on December 31. Semiannual Period-End Unamortized Discount Carrying Value (0) January 1, issuance $13,466 $186,534 (1) June 30, first payment 11,782 188,218 (2) December 31, second payment . 10,098 189,902

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

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

Q: On the first day of the fiscal year, a company issues a $4,400,000, 7%, 8-year bond that pays…

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

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: Gia Company had the following bond issue: Date of issue/sale: April 1, 20-A Face value: $200,000…

A: Cash received on bonds issue =Face value of bonds x issue price = $200,000 x 99/100 = $198,000

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 January 1, the first day of the fiscal year, Jefferson Company issues a $1,000,000, 6%, five-year…

A:

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 an $8,000,000, 11%, five-year bond that pays…

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

Q: Walker Corporation issued 10%, 5-year bonds with a par value of $10,000,000 on January 1, 2005.…

A: Bonds are a form of liability for the business, for which regular interest payments needs to be made…

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: 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 January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $300,000, 9%, 10-year…

A:

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: Franklin Corporation issues $98,000, 10%, five-year bonds on January 1 for $102,400. Interest is…

A: Compute the unamortized premium as of July 1.   Unamortized premium as of July 1 = Issue price of…

Q: On the first day of the fiscal year, a company issues an $302,000, 8%, 5-year bond that pays…

A: Under the straight line method of amortization, premium or discount of bond need to amortize equally…

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 $8,900,000, 8%, 5-year bond that pays…

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

Q: Enviro Company issues 8%, 10-year bonds with a par value of $340,000 and semiannual interest…

A: Journal is the primary book where transactions of a company are originally recorded.  Further, a…

Q: Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and…

A: Present value: It refers to the current value of the sum of money or the series of cash flows that…

Q: On the first day of the fiscal year, a company issues a $5,100,000, 9%, 4-year bond that pays…

A: Bonds issued at discount: A bond said to be issued at discount when its issue price is less than…

Q: Wookie Company issues 9%, five-year bonds, on January 1 of this year, with a par value of $109,000…

A: Number of periods = 5*2 = 10 Coupon rate=  9%/2 = 4.5% As the beginning carrying value is more than…

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: On the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays…

A: Since it is a semiannual bond interest will be paid in 10 installments  ( 5 years × 2 )  The bond is…

Q: Wookie company issues 10% five year bonds on January 1 of this year with a par value of $200,000 and…

A: The issue of bond is a practice to raise loan for companies. The investor promises to pay the…

Q: ay of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest…

A: Solution: Semiannual interest amount = $800,000*6%*6/12 = $24,000 Discount amortization = ($800,000…

Q: Paulson Company issues 7%, four-year bonds, on January1 of this year, with a par value of $91,000…

A: Solution 1: Date Particulars Debit Credit 01-Jan Cash A/c Dr  $84,447     Discount on Bond…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $700,000, 5%, 10-year…

A: The accounting equation shows the equal balance of assets side and equity& liability side, it…

Q: Paulson Company issues 9%, four-year bonds, on January 1 of this year, with a par value of $101,000…

A: Solution A -                                                                     The issuance of…

Q: On the first day of the fiscal year, a company issues an $994,000, 7%, 5-year bond that pays…

A: Total discount on bonds issue =  Face value of the bonds - Issue value of the bonds = 994000-934400…

Q: Gia Company had the following bond issue: Date of issue/sale: April 1, 20-A Face value: $200,000…

A: Bonds are a form of liability being incurred by the business. It can be short term or long term,…

Q: On September 1, Deutsch Limited issues 8%, 5-year bonds payable with a maturity value of OR 20,000.…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: On April 30, Year 1, Augusta Corporation issued $5,000,000 of 4% 10-year bonds paying interest…

A:

Q: Snap Company issues 13% five-year bonds, on January 1 of this year, with a par value of $210,000 and…

A: A journal entry is used to record a commercial transaction in the accounting records of a…

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: 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 January 1, Year 1, a company issues $460,000 of 5% bonds, due in 15 years, with interest payable…

A: When the bonds are issued at price which is equal to the face value, they are said to be issued at…

Q: On the first day of the fiscal year, a company issues an $314,000, 6%, 5-year bond that pays…

A: A company issues bond having face value of $314000 at 6% , 5 year bond , paying semiannual interest…

Q: Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000…

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

Q: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $90,000…

A: Given information is: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a…

Q: On the first day of the fiscal year, a company issues a $7,300,000, 8%, 10-year bond that pays…

A: Date Account titles and Explanation Debit Credit June 30 Interest expense ($292,000+$65,428)…

Q: Paulson Company issues 10%, four-year bonds, on January 1 of this year, with a par value of $98,000…

A: Semiannual Interest payment = Par value of bonds x rate of interest x no. of months/12 = $98000 x…

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 January 1, Year 1, a company issues $570,000 of 7% bonds, due in 10 years, with interest payable…

A: Bonds are the financial contract that is issued by the companies to raise the debt funds from the…

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 January 1, assume that Comcast issues $300,000 of 15-year, 10% bonds payable for $351,876,…

A: Solution 1: Issue price of this bond = Proceeds from bond issued = $351,876

Q: Snap Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $100,000…

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

Q: Enviro Company issues 8%, 10-year bonds with a par value of $250,000 and semiannual interest…

A: When business entity is in need of cash, it issues Debenture to finance from outsiders and for using…

Q: Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $200,000…

A: Bond: - Bond is a written agreement in which the issuer is obligated to pay a specified amount at…