Premium Amortization On the first day of the fiscal year, a company issues an $8,000,000, 11%, five-year bond that pays semiannual interest of $440,000 ($8,000,000 × 11% × ½), receiving cash of $8,308,869. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.

Q: On the first day of the fiscal year, a company issues $2,000,000, 12%, five-year bond that pays…

A: Compute present value of the bonds as shown below:

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: 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 $970,000, 12%, 10-year bond that pays…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

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

A: Interest expense is the expense incurred by the company on the borrowed amount.

Q: On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays…

A: Interest expense = Cash interest paid - premium amortized semi annually

Q: Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

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: 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: Bond Premium, Entries for Bonds Payable Transactions Rodgers Corporation produces and sells…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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: 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: Yale Corporation issued to Zap Corporation $84,000, 8% (cash interest payable semiannually on June…

A: Journal entries serve as the foundation for various accounting operations such as ledger account…

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: $84,000, 8% (cash interest payable semiannually on June 30 and December 31) 10-year bonds dated and…

A: Journal entries form the basis for other accounting tasks such as ledger account preparation, trial…

Q: Bond Premium, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Premium…

A: When market interest rate is less than the coupon interest rate then bond is called as issued at…

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: On the first day of the fiscal year, a company issues a $888,000, 6%, 10-year bond that pays…

A:

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

A: Bond is a instrument which has a fixed income and is issued by the borrower, one needs the money to…

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: 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: 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 $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: Premium Amortization On the first day of the fiscal year, a company issues a $5,300,000, 8%,…

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

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: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…

A: Accounts title Debit Credit Interest Expense $55,775   Premium on Bonds Payable $2,425…

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: 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: Discount Amortization On the first day of the fiscal year, a company issues a $8,600,000, 10%,…

A:

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: On the first day of the fiscal year, a company issues a $5,000,000, 10%, 4-year bond that pays…

A: Premium on Bond issue = Issue price of bonds - Face value of bonds = $5,336,638 - $5,000,000 =…

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: 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: 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: 1.  Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on…

A: 1)   Debit Credit Cash 73,100,469   Premium on Bonds Payable   8,100,469 Bonds Payable…

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

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

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 the first day of the fiscal year, a company issues a $7,200,000, 10%, 7-year bond that pays…

A: Given the face value of bond = $7,200,000 Life of bond = 7 years Semi annual interest = 360,000 Cash…

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 the first day of the fiscal year, a company issues a $584,000, 11%, 10-year bond that pays…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

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.…