Problem 17-02 On January 1, 2020, Sweet Company purchased $340,000, 8% bonds of Aguirre Co. for $313,745. The bonds were purchased to yield 10% interest. Interest is payable semiannually on July 1 and January 1. The bonds mature on January 1, 2025. Sweet Company uses the effective-interest method to amortize discount or premium. On January 1, 2022, Sweet Company sold the bonds for $315,215 after receiving interest to meet its liquidity needs. If the fair value of Aguirre bonds is $317,215 on December 31, 2021, prepare the necessary adjusting entry. (Assume the fair value adjustment balance on December 31, 2020, is a debit of $3,709.) Prepare the journal entry to record the sale of the bonds on January 1, 2022.

Q: A Company issues P10,000,000 face value of bonds at 96 on January 1, 2006. The bonds are dated…

A: Note: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered…

Q: Problem 19-5 (AICPA Adapted) On October 1, 2021, Yost Company purchased 4,000 of the P1,000 face…

A: Journal Entries For the year 2021 and 2022 S. no. Particulars Ref. Debit Credit 1. Investment…

Q: Client 7: The following data has been provided by your client, Hye Jin Corporation for their…

A: Value of bonds on Decemeber 31,2021=P1000000 x 98/100 = P980000   Interest income in 2022 =…

Q: Exercise 9-14 On July 1, 2020, Blue Spruce Aggregates Ltd. purchased 5% bonds to allocate…

A: Part 1: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: 15. Megan, Inc., sold $500,000 of its 9%, five-year bonds dated January 1, 2018, on May 1, 2018, for…

A: Following is the answer to the given question

Q: Supersonic Company was authorized to issue P7, 000,000 face values, 12%, 10-years bonds on April 1,…

A: The journal entries for 2019 and 2020 including adjustments and partial statement of financial…

Q: QUESTION 24 On January 1, 2015, a company issues 5-year bonds with a stated interest rate of 6% and…

A: On maturity  the bonds will be redeemed  at its face value.  Only  at time of issue of bonds their…

Q: On January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified at…

A: Amortization is the process of writing off a bond slowly from the funds available at the residual of…

Q: Exercise 14-10 (Part Level Submission) On January 1, 2020, Blue Company sold 11% bonds having a…

A: The effective interest approach seems to be a practice for amortizing or discounting bonds. This…

Q: Problem 6-4 (ACP) Clan Company issued 3-year 12% bonds with face amount of P2,000,000. Interest is…

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

Q: Problem 14-5In each of the following independent cases, the company closes its books on December 31.…

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

Q: BE14.6 (LO 1) On January 1, 2020, JWS Corporation issued $600,000 of 7% bonds, due in 10 years. The…

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: company issues $25,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2020. Interest is paid on…

A: Carrying  value of bond = issue amount + interest  accrued  - interest  paid

Q: On January 1, 2019, Gurl Company purchased as a long term investment P5,000,000 face amount of Lulu…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: The December 31, 2021 balance sheet of Kingbird Co. included the following items: 7.5% bonds…

A: The question is based on the concept of Journal Entry.

Q: Problem 21-4 (IFRS - From FVPL to amortized cost) On January 1, 2020, Royalty Company purchased 9%…

A: In this question, there are multiple questions but we solved only first three sub-parts as per…

Q: Problem 21-6 (IFRS- From FVPL to FVOCI) On January 1, 2021, Gerry Company purchased 6% bos with face…

A: Solution Income statement  is a financial statement that shows you the company's Income and…

Q: PECAN Company issued ₱10,000,000 face value bonds at 95 plus accrued interest on March 1, 2021.…

A: Interest accrued on bonds = Face value of bonds x rate of interest x no. of months/12 = ₱10,000,000…

Q: need the steps and answers

A: Bond refers to fixed income instrument showing indebtedness to holders of bond.

Q: Problem 4: DONNER Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is…

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

Q: Question 17 - Journalize the following transactions CAB Corporation issues $9,000,000 of 5 year, 8%…

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

Q: On January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified at…

A: Step2 in solution.

Q: A company issues P20,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2017. Interest is paid…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Problem 21-6 (IFRS- From FVPL to FVOCI) On January 1, 2021, Gerry Company purchased 6% bos with face…

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

Q: Please help with final numbers

A: Bond Premium Amortization is the amortization of excess premium paid over and above the face value…

Q: Question 2 On April 1, 2019, Ellison Co. issued 4-year, 8%, €100,000 face value bonds. The bonds…

A: (a) Bond Amortization Schedule: (Amount in Euros) Date…

Q: Problem 17-02 On January 1, 2020, Sweet Company purchased $340,000, 8% bonds of Aguirre Co. for…

A: Bonds are the interest-paying securities that are issued by a corporation or the government.

Q: On January 1, 2016, Malibu Co. purchased 1,000,000 10% bonds designated as financial asset at…

A: As per our policy, I am answering first three sub-questions. Please repost the question by asking…

Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…

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

Q: 18. On January 1, 2020, Puckett Co. issued $50,000 of 8%, ten-year bonds at 98. Issuance costs…

A: In this question, loss on redemption shall be  Loss on bond retainment =Redemption price of bond…

Q: Problem 19-8 (IAA) On October 1, 2020, Complex Company purchased a 12% P3,000,000 face amount bond…

A: A bond is a long-term debt instrument issued by a company to finance its operations. A fixed %…

Q: 30. On January 1, 2023, AAA Company issued as amortized cost P5,000,000 face value,8% bonds for…

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

Q: The December 31, 2021 balance sheet of Metlock Co. included the following items: 7.5% bonds…

A: Journal entries are how to record the transactions in the books of accounts of the company on daily…

Q: On January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified at…

A:

Q: On January 1, 2021, Marceline the Vampire Queen Co. purchased P1,000,000 10% bonds classified at…

A: Carrying value at the end of 2019 P 5,333,620  Add interest payment P 500,000 5000000*10% Total…

Q: PART 1 Recording Entries for AFS Debt Securities— Effective Interest Method Adjust FVA at Year-End…

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

Q: Presented below is an amortization schedule related to Stellar Company’s 5-year, $180,000 bond with…

A: Hello , I am only answering first three sub-parts as per the policy and if you want others to be…

Q: Problem 20-6 (IAA) On January 1, 2021, Portugal Company purchased bonds with face amount of…

A: As per Effective interest method, the interest is calculated on the carrying value of the bond…

Q: On January 1, 2020, Alaska Corporation purchased P1,000,000 10% bonds for P1,051,510 (including…

A: Calculation of the amount to be recognized as fair value adjustment loss in its 2020 profit or…

Q: E 14-7 Devon Harris Company sells 10% bonds having a maturity value of $2,000,000 for $1,855,816.…

A: As posted multiple independent questions we are answering only first question kindly repost the…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.