Pinetop Corporation issued $153,000 of 12-year bonds at par. The bonds have a stated rate of 5% and pay interest annually. What is the journal entry to record the sale of the bonds? If an amount box does not require an entry, leave it blank.

Pinetop Corporation issued $153,000 of 12-year bonds at par. The bonds have a stated rate of 5% and pay interest annually. What is the journal entry to record the sale of the bonds? If an amount box does not require an entry, leave it blank.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 10EA: Pinetop Corporation issued $150,000 10-year bonds at par. The bonds have a stated rate of 6% and pay...

See similar textbooks

Related questions

Q: Buffalo Corporation issues $590,000 of 9% bonds, due in 10 years, with interest payable…

A: Number of half years=10×2=20 half-years

Q: On January 1, 2018, Quinton Corporation issued 8% bonds with a face value of $100,000. The bonds are…

Q: Nero Solutions Co. issued an $800,000, 6%, three-year bond for $806,000. The bond pays interest…

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

Q: On January 1, Elias Corporation issued 7% bonds with a face value of $94,000. The bonds are sold for…

A: Bonds will pay fixed amount of interest on face value of the bond on monthly/ quarterly/ half…

Q: Renfro Company issued $300,000 of 8%, 10-year bonds at 102. Interest is paid annually, and the…

A: We have the following information: Renfro Company issued $300,000 of 8%, 10-year bonds at 102%…

Q: On January 1 of this year, the carrying value of XYZ Inc's bonds was $750,590. The face value of…

A: Carrying value of bonds = $ 750590 Face value of bonds = $ 760000 Gain or loss on redemption of…

Q: On January 1, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated…

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

Q: of 6% were sold at par value. The bonds were dated January 1, 20x6. Interest will be paid twice a…

A: The company issues bonds for the expansion of capital investment. The bonds were for a long period.…

Q: Ajax, Inc., issued callable bonds with a par value of $1,000,000 that require the payment of a call…

A: The Journal entry will be passed as follows on 30 Sept

Q: Moss Co. issued $450,000 of four-year, 11% bonds, with interest payable semiannually, at a market…

A: Present value of bonds payable = Present value of interest payments + Present value of principal n…

Q: On January 1, 20x1, SPEED Company purchased 12% bonds, having a face value of P800,000. The bonds…

A: Bond is an investment security which is issued by large organizations to raise the fund. The bond…

Q: Moss Co. issued $101,000 of five-year, 12% bonds with interest payable semiannually, at a market…

A: A bond is a debt instrument that is issued by the organization to raise the funds from the investor…

Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…

A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…

Q: When the market rate of interest was 12%, Halprin Corporation issued s768,000, 11%, five year bonds…

A: Lets understand the basics. When market interest rate is more than the bond interest rate bond is…

Q: On January 1, Elias Corporation issued 10% bonds with a face value of $67,000. The bonds are sold…

A: Discount on bonds = Face value of bonds - Issue price of bonds = $67,000 - $64,990 = $2,010…

Q: Medhurst Corporation issued $91,900 in bonds for $89,000. The bonds had a stated rate of 6% and pay…

A: Bonds are a form of debt or loan issued by the company, on which business has to make regular…

Q: what will be the issuance price (approximate) of the bonds?

A: Interest payable on the bond for every 6 months = 9000 (300000*6%*6/12) Calculation of present value…

Q: Culver Corporation issues $450,000 of 8% bonds, due in 9 years, with interest payable semiannually.…

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

Q: On March 1, 2011, Fast Freight Company sold Rs. 400,000 of its 9 percent, 20-year bonds at 109.9.…

A: Amortization Schedule Date Interest payment Interest Expense Amortization of premium Balance in…

Q: Concord Corporation issues $530,000 of 9% bonds, due in 10 years, with interest payable…

Q: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest…

A: Cash proceeds from the issuance of bonds = Par value of bonds x Issue price %

Q: On January 1, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $3,000,000. The…

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

Q: onds pay interest semiannually on June 30 and December 31. If the bonds are retired at the end of…

A: Amortization of bonds refers to the process in which the carrying value of the bond is adjusted with…

Q: Coffman Company sold bonds with a face value of $1,000,000 for $880,496. The bonds have a coupon…

A: Bonds Payable - Bonds is the amount payable at fixed interest rate at fixed period. It is the long…

Q: Bonita Corporation issues $590,000 of 9% bonds, due in 9 years, with interest payable semiannually.…

A: Calculate the cash interest payment for bonds.

Q: Splish Inc. issues $3,700,000 of 7% bonds due in 12 years with interest payable at year-end. The…

A: Current price of the bond is the present value of future payments to be received. Future payments…

Q: Eveready Company issued P100,000 of 8% term bonds on January 1, 2X19, due on January 1, 2X24, with…

A: Bond: A bond is a debt security. It is issued to raise money from investors who is willing to lend…

Q: Medhurst Corporation issued $82,900 in bonds for $80,000. The bonds had a stated rate of 6% and pay…

A: Bonds are issued by the company to meet the financial requirements of the company without losing its…

Q: Moss Co. issued $101,000 of five-year, 11% bonds with interest payable semiannually, at a market…

A: Concept: The present value (PV) is defined as the current value of the future sum of money or the…

Q: On January 1, 2010, Huber Co. sold 12% bonds with a face value of $600,000. The bonds mature in five…

A: Amortization of bond: The process of allocation and reduction of the discount or premium on bonds to…

Q: Amount received by Splish when bonds were issued

A: Computation of amount received by Splish on issue of bonds shall be shown below :

Q: On January 1, Year 1, Hart Company issued bonds with a face value of $150,000, a stated rate of…

A: Amortisation Table Date Cash Payment Interest Expense Premium Amortization Carrying Value…

Q: Garcia Company issues 10%, 15-year bonds with a par value of $240,000 and semiannual interest…

A: Amortization of bond discounts using Effective Method: The issuance of bond at a price lower than…

Q: Moss Co. issued $101,000 of five-year, 12% bonds with interest payable semiannually, at a market…

A: Given information: issue price of the bonds $101,000 interest rate 12% effective interest…

Q: On December 31, 2006, Moses Company issued P5,000,000 face value, 5-year bonds at 109. Each P1,000…

A: Given data, Face value of bonds=P5,000,000 Interest rate on bonds =11% prevailing market rate of…

Q: Nordbock Inc. reports the following outstanding bond issue on its December 31, 20Y1,balance sheet:…

A: Bond investment: Bond investments are debt securities which pay a fixed interest revenue to the…

Q: On January 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a…

A: DISCLAIMER: MARKET RATE IS NOT PROVIDED FOR CALCULATING AMORTIZATION THOUGH I PROVIDED YOU WITH ITS…

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 110 bonds with a face value of $1,000 for $113,900. The…

A: Jan 1. Cash Debit $113,900 Premium on bonds payable Credit $ 3900 Bonds Payable…

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

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

Q: Moss Co. issued $101,000 of four-year, 12% bonds with interest payable semiannually, at a market…

A: Present value of the bonds payable = Present value of principal + Present value of interest payments…

Q: Wefald Company sold bonds with a face value of $608,000 for $562,000. The bonds have a coupon rate…

A: The process of recording business transactions in the books of accounts for the first time is…

Q: Whiteside Corporation issues $500,000 of 9% bonds, due in 10 years, with interest payable…

Q: On January 1, 2022, Fancy Co issued $100,000 in 10 year bonds. The bonds have a stated rate of 5%…

A: This question relates to bond amortization journal entries.

Q: Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a market…

A: Present Value: The value of today’s amount expected to be paid or received in the future at a…

Q: ature in six years, and interest is paid semi-annually on June 30 and December 31. The bonds were…

A: The bond will mature on the maturity date, and the issuing company would pay the debt holder the…

Q: Evie Inc. issued 49 bonds with a $1,400 face value, a five-year life, and a stated annual coupon of…

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

Question

Pinetop Corporation issued $153,000 of 12-year bonds at par. The bonds have a stated rate of 5% and pay interest annually.

What is the journal entry to record the sale of the bonds? If an amount box does not require an entry, leave it blank.

Pinetop Corporation issued $153,000 of 12-year bonds at par. The bonds have a stated rate of 5% and pay interest annually.
What is the journal entry to record the sale of the bonds? If an amount box does not require an entry, leave it blank.

Definition Definition Method of recording financial transactions in the book of original entry by debiting and crediting the accounts affected by a transaction using the golden rules of accrual accounting.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Pinetop Corporation issued $150,000 10-year bonds at par. The bonds have a stated rate of 6% and pay interest annually. What is the journal entry to record the sale of the bonds?
On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semi-annually. What is the journal entry to record the first payment to the bondholders?
On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?
Piedmont Corporation issued $200,000 of 10-year bonds at par. The bonds have a stated rate of 6% and pay interest annually. What is the journal entry to record the first interest payment to the bondholders?
Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the sale of the bonds?
On July 1, Somerset Inc. issued $200,000 of 10%, 10-year bonds when the market rate was 12%. The bonds paid interest semi-annually. Assuming the bonds sold at 58.55, what was the selling price of the bonds? Explain why the cash received from selling this bond is different from the $200,000 face value of the bond.
Diana Inc. issued $100,000 of its 9%, 5-year bonds for $96,149 when the market rate was 10%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments.
Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received $45,000. What is the journal entry to record the sale of the bonds?
Willoughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received $105,000. What is the journal entry to record the sale of the bonds?
Starmount Inc. sold bonds with a $50,000 face value, 12% interest, and 10-year term at $48,000. What is the total amount of interest expense over the life of the bonds?
On July 1, a company sells 8-year $250,000 bonds with a stated interest rate of 6%. If interest payments are paid annually, each interest payment will be ________. A. $120,000 B. $60,000 C. $7,500 D. $15,000