Paulson Company issues 9%, four-year bonds, on January 1 of this year, with a par value of $101,000 and semiannual interest payments.   Semiannual Period-End Unamortized Discount Carrying Value (0) January 1, issuance $ 6,753   $ 94,247   (1) June 30, first payment   5,909     95,091   (2) December 31, second payment   5,065     95,935

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: Kevin, Inc. issues P 3,000,000, 9%, bonds for P 2,817,000. The market interest rate for these bonds…

A: Annual interest payment = Face value of bonds x stated rate of interest x no. of months/12 Annual…

Q: Discount-Mart issues $16 million in bonds on January 1, 2021. The bonds have a ten-year term and pay…

A: Correct option is (c) 12%

Q: On January 1, 20x1, Faith Co. issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on…

A: Calculation of Interest: Particulars Amount (P) Cash Proceeds (Issue Price) 2,206,168 Less:…

Q: Jan Company sells 5-year bonds with a face value of $100,000 for $97,000. Interest is paid…

A: 1. $5000

Q: On the first day of the fiscal year, a company issues a $415,000, 7%, 10-year bond that pays…

A: Premium on Bond Payable = $435,800 - $415,000 = $20,800   Interest is paid semiannually for 10…

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

A: Journal entries are the transactions that are recorded in the primary book. They are chronological…

Q: Swifty Company issued $576,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is payable…

A: A bond is a fixed pay instrument issued to represent to an advance made by a financial specialist to…

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: Adonis Corporation issued 10-year, 7% bonds with a par value of $220,000. Interest is paid…

A: SOLUTION-   BONDS IS A FIXED INCOME INSTRUMENT THAT REPRESENT A LOAN MADE BY AN INVESTOR TO A…

Q: Q6

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

Q: Yale Corporation issued to Zap Corporation $60,000, 8% (cash interest payable semiannually on June…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Franklin Corporation issues $91,000, 10%, five-year bonds on January 1 for $95,100. Interest is paid…

A: Bonds are a form of debt or loan issued by the company. Regular interest payments needs to be made…

Q: Crane Company i

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: On January 1, $904,000, 5-year, 10% bonds, were issued for $876,880. Interest is paid semiannually…

A: SOLUTION- Semiannual Amortization Amount= 904000 * 10% * 6/12= 45200

Q: Franklin corporation issues $81,000, 8%, 5-year bonds on January 1, for $84,650. Interest is paid…

A: BOND IS A SECURITY UNDER WHICH THE DEBT PRINCIPAL AMOUNT IS REPAID ALONG WITH INTEREST OVER A…

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: On January 1, 20x1, Faith Co. Issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on…

A: Working note: Premium amortization schedule:

Q: A company issues $50,000 of 4% bonds, due in 5 years, with interest payable semiannually. Assuming a…

A: please like the answer your response matters Interest expense = Issue price*Market rate =…

Q: Adonis Corporation issued 10-year, 9% bonds with a par value of $260,000. Interest is paid…

A: Amount of Interest to be paid semi annually = $260,000 x 9% x 6 months 12 months = $11,700

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: 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, 2008, P5,000,000, 5-year, 10% bonds, were issued for P4,850,000. Interest is paid…

A: Bonds are form of debt or loan that is being issued by the business, on which regular interest…

Q: Oak Branch Inc. issued $860,000 of 5%, 10-year bonds when the market rate was 4%. They received…

A: Definition: Interest: Amount charged on the borrowed principal amount.

Q: vanhoe Corporation issued $390,000 of 5-year bonds on April 1, 2020. Interest is paid semi-annually…

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

Q: On January 1, 20x1, Silent Co. issued 1,000 bonds with face amount of P4,000 each for a total of…

A: Interest expense for 20x1 =  ( issue value of bonds - transaction costs )x  effective interest rate…

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 January 1, 20x1, Hope Co. issued 5-year, 12%, P2,000,000 bonds for P2,151,632. Principal is due…

A: Working note: Bond premium amortization schedule:

Q: Oak Branch Inc. issued $820,000 of 6%, 10-year bonds when the market rate was 5%. They received…

A: Here in this question, we are required to prepare amortization table for the first three years. When…

Q: Adonis Corporation issued 10-year, 7% bonds with a par value of $160,000. Interest is paid…

A: Bond is an instrument in which investors provide loan to the borrower company in return of a fixed…

Q: On January 1, Bramble Corp. issued 10 year, S6,000,000, 9% bonds for $6,842,830. The market rate of…

A: Introduction: An amortizing loan is one with monthly payments that go toward the principle. Payment…

Q: On the first day of the fiscal year, a company issues a $674,000, 7%, 10-year bond that pays…

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: Zee Company sold an issue of $500,000, 9%, 10-year bonds for $468,845 on April 1. The interest is…

A: The discount on bonds needs to be credited at the end of the period. The entry would be to debit…

Q: On the first day of the fiscal year, a company issues a $676,000, 11%, 10-year bond that pays…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

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: Duval Company issues four-year bonds with a $111,000 par value on January 1, 2021, at a price of…

A: Bonds are an obligation on the entity. These are a source of raising fund for which the entity has…

Q: (b) Splish Inc. issued $590,000 of 9%, 10-year bonds on June 30, 2020, for $488,488. This price…

A: Calculation of interest expense as on October 31, 2020, using effective-interest method: Thus, the…

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: Bee Inc. issues P 3,000,000, 9%, bonds for P 2,817,000. The market interest rate for these bonds is…

A: Formulas: Unamortized bond discount = Total bond discount - bond discount amortized where, Total…

Q: On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at par…

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

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: Discount-Mart issues $17 million in bonds on January 1, 2021. The bonds have a ten-year term and pay…

A: Market annual rate of interest on the bonds = [(Interest expense on 06/30/2021 / Carrying Value on…

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…