Premium Amortization On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays semiannual interest of $212,000 ($5,300,000 x 89% receiving cash of $5,520,390. Journalize the first interest payment and the amortization of the related bond premium. If an amount box does not require an entry, leave it blank.

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

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

Q: On the first day of the fiscal year, a company issues a $4,800,000, 9%, 6-year bond that pays…

A: Formula: Interest expense = Bond face value x Interest rate x Time periods

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

A: Solution: When straight line Amortization is followed, the bond premium is based on total amount of…

Q: On the first day of the fiscal year, a company issues a $968,000, 8%, 10-year bond that pays…

A: Working Note: Total premium on Bonds = Issue value - Face value of the bonds = $1,016,400 - 968,000…

Q: On the first day of the fiscal year, a company issues a $4,600,000, 6%, 10-year bond that pays…

A: Discount on bonds payable = face value of bonds - Issue price = $4600000-3702451 = $897,549

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 $500,000, 8%, 10-year bond that pays…

A: Solution:- Given, Company issues =$500,000, 8%, 10-year bond that semiannual  Interest = $20,000…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $1,800,000, 11%, 8-year…

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

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: On the first day of the fiscal year, a company issues a $874,000, 9%, 10-year bond that pays…

A: A record is often kept in the general ledger, but it can also be kept in a single account,…

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: 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: 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: Discount Amortization On the first day of the fiscal year, a company issues a $4,600,000, 8%,…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: On the first day of the fiscal year, a company issues a $967,000, 8%, 10-year bond that pays…

A: A journal entry is used to record a business transaction in an organization's accounting records. A…

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 $4,200,000, 10%,…

A:

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: 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: 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 $4,800,000, 7%, 8-year bond that pays…

A: When bonds are issued at Premium then with each payment part of the premium balance is Amortize with…

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: Bond Premium, Entries for Bonds Payable Transactions Campbell Inc. produces and sells outdoor…

A: Bonds Payable: Bonds payable are generated when a company issues bonds to generate cash. As a bond…

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: 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 $883,000, 10%, 10-year bond that pays…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%,…

A:

Q: On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays…

A: Discount on bonds issue = Face value of bonds - issue price =  $4,900,000 - $4,440,130 = $459,870

Q: On the first day of the fiscal year, a company issues a $3,000,000, 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: On the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays…

A: When a bond issued for a amount more than its face value then the excess amount received would be…

Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays…

A: Working note:   Premium on issue $1,004,900 – 957,000 $47,900 Semi-annual period 10×2…

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: 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: Premium Amortization On the first day of the fiscal year, a company issues a $6,600,000, 11%, 8-year…

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

Q: On the first day of the fiscal year, a company issues a $8,300,000, 6%, 8-year bond that pays…

A: Cash interest  = $8,300,000 x 6% x 1/2 = $249,000

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: Premium Amortization On the first day of the fiscal year, a company issues an $8,000,000, 11%,…

A: Solution: Journal entry for Issuance of Bonds Date Particulars Debit Credit   Cash A/c…

Q: On the first day of the fiscal year, a company issues a $5,100,000, 8%, 5-year bond that pays…

A: Total Premium on bonds = Issue price - Face value of bonds = $5,312,072 -  $5,100,000 = $212,072

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: 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: Premium Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%, 9-year…

A: When bonds in the business are sold at a value more than its face value, then it means bonds are…

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

Q: On the first day the fiscal year, a company issue a $437,000, 7%, 10years bond that pays semiannual…

A: Bonds are a form of debt issued by the company. These are part of long term debt of the business.…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,900,000, 9%,…

A: The below journal entries are passed to calculate the expenses incurred on interest payments on…