Prepare the journal entries to record (a) the issuance of the bonds, (b) the payment of interest and related amortization on July 1, 2020, and (c) the accrual of interest and the related amortization on December 31, 2020

Q: Chowan Corporation issued $100,000 of 10% bonds dated January 1, 2019, for $96,832.72 on January 1,…

A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

Q: On July 1, 2020, West Company purchased for cash, sixteen $10,000 bonds of North Corporation to…

A: Introduction Bonds issued with discount: Bonds are financial instrument which represents company’s…

Q: Polk Incorporated issued $251,000 of 10% bonds on July 1, 2019, for $260,122.33. The bonds were…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS    Par value of bonds = $251,000  Semi-annual interest…

Q: On January 1, 2020, High Shots issued $250,000 of 11% ten-year bonds at 104, Issuance costs amounted…

A: Face value of the bond: $250,000 Life of the bond: 10 years Issue price: $250,000 x 104/100 =…

Q: On January 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: On December 31, 2018 Brown Company issued $600,000 of 15-year, 11% bonds payable for $558,706,…

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

Q: Bryan Company issued $500,000 of 10% face value bonds on January 1, 2019, for $486,000. The bonds…

A: Workings: Discount on issue of 10% Bonds=$500,000-$486,000=$14,000 the straight-line amortization…

Q: On January 1, 2020, Nichols Company issued for $1,085,800 its 20-year, 11% bonds that have a…

A: “Hey, since there are multiple sub-parts posted, we will answer first three sub-parts. If you want…

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: ) On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

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

Q: The Marin Company issued $240,000 of 13% bonds on January 1, 2020. The bonds are due January 1,…

A: The price of a bond is the present value of its cash flows. For a coupon bond, the cash flows are…

Q: On January 1, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. The bond interest is…

A: SOLUTION INTEREST EXPENSE TO BE RECOGNIZED FOR 6 MONTHS = BONDS BOOK VALUE AT THE BEGINNING OF THE…

Q: f each year. Aumont Company allocates interest and unamortized discount or premium on the…

A: c.   journal entry to record the interest payment and the amortization for 2017 Date Account…

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

Q: On January 1, 2020, Skysong Corporation issued $660,000 of 9% bonds, due in 8 years. The bonds were…

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

Q: On June 30, 2020 Porter Company issues 11%, five-year bonds payable with a face value of $120,000.…

A: The bonds that are issued at face value does not include any discount or premium.

Q: Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2020, at 119.792 to yield 8%.…

A: a. Prepare journal entry for issuance of the bonds on January 1, 2020.

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A:

Q: Nabil Company issued $1,500,000 of bonds on January 1, 2020.   Instructions   Prepare the journal…

A: The word redemption seems to have various purposes in the financial and business world, depending on…

Q: On August31,2021, DASHER Company issue dat 104 plus accrued interest, three thousand 10% bonds with…

A: Answer: The carrying value of a bond refers to the net amount between the bond’s face value plus any…

Q: .Kiki Inc., which closes its books on December 31, is authorized to issue $600,000 of 8%, 10-year…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: At the beginning of 2020 Max company issued 10% bonds with a face value of 900,000. These bonds…

A: Coupon rate = 10%/2 = 5% Market rate = 12%/2 = 6% Number of periods = 5*2 =10 Interest paid = Face…

Q: n January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The bonds were…

A: Solution Working note Coupon amount               =600000*7% / 2…

Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…

A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…

Q: On January 1, 2021, Lh Company was authorized to issue 12% bonds with a face amount of ₱5,000,000.…

A:

Q: Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2019, for $111,283.65 on January 1,…

A:

Q: On January 1, 2019, Gates Corporation issued $200,000 of 5-year bonds due December 31, 2023, for…

A: In the given sum we will have to calculate the amortization expenses and interest expenses of the…

Q: At the beginning of this year, MM purchased P6,000,000, 9% face amount bonds. The interest is…

A: For calculating the issue price of bonds , we need to calculate the present value of future cash…

Q: On July 1, 2020, West Company purchased for cash, ten $10,000 bonds of North Corporation to yield…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: On January 1, 2008, Davis Corporation issued $3,000,000 of 8% bonds at 103. Interest is paid…

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

Q: Green Mountain Power Company obtained authorization to issue 20-year bonds with a face value of $10…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Xonic Corporation issued $8 million of 20-year, 8 percent bonds on April 1, 2021, at 102. Interest…

A: a) Date Account titles & explanation Debit Credit Apr 1, 2021 Cash (8,000,000 *102%)…

Q: On January 1, 2020, Grouper Corporation issued $480,000 of 7% bonds, due in 10 years. The bonds were…

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

Q: On September 1, 2021, Evansville Lumber Company issued $80 million in 20-year, 10 percent bonds…

A: Discount Amortization=Amount of bonds issued×Rate of interest×Number of monthPeriod of issuance…

Q: a. Prepare a bond amortization schedule for 2020 and 2021 using the effective interest method.…

A: “Since you have posted a question with multiple subparts, we will be solving the first three…

Q: On January 1, 2020, PS ind issued P600,000 of 7% bonds, due in 10 years. The bonds were issued for…

A: Introduction: Journal entries are the basis of double accounting rules, which have been used for…

Q: Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2017, at 119.792 to yield 8%.…

A: Requirement a:   Pass necessary journal entry to record issue of bonds at premium.

Q: Nates corporation issued $1,500,000 of 11% of bonds at 97 on Jan 2,2019. Interest is paid…

A: Bond is an investment security which provides a regular interest income at fixed rate to the bond…

Q: Calculate the value of the bond at the time of issuance, and record the initial journal entry.…

A: Bond valuation refers to a method which is used to compute the current value of future cash flow of…

Q: On January 1, 2020, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest…

A: SOLUTION-                                                                      JOURNAL ENTRIES…

Q: On December 31, 2018, Blue Devil Inc. issued $600,000 of 15-year, ten percent bonds payable for…

A: Bond financing is an instrument for borrowing the funds. The borrower has to pay a fix amount of…

Q: Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2019, for $111,283.65 on January 1,…

A: Journal entries refers to the process of systematic recording of the financial transactions of a…

Q: On January 1, 2019, Legion Company sold OMR 50,000 of 10% ten-year bonds. Interest is payable…

A: Formulas: Interest expense = Issue price * Yield

Q: On November 1, 2021, Mason Company issued P8,000,000 of its 10 year, 8% term bonds dated October 1,…

A: Total discount on issue of bonds = Face value of bonds - issue value of bonds = P8,000,000 -…

Q: On January 1, 2019, Black Corporation issued P6, 000,000 of 7% bonds, due in 10 years. The bonds…

A: A bond is basically an interest-bearing loan instrument that is issued by the companies in order to…

Q: Devers Corporation issued $400,000 of 6% bonds on May 1, 2020. The bonds were dated January 1, 2020,…

A:

Q: On November 1, 2021, Mason Company issued P8,000,000 of its 10 year, 8% term bonds dated October 1,…

A: Total interest accrued for the period ending July 31, 2022 = Face value of bonds x rate of interest…