Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual contract rate is 13%, and interest is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $409,850. 1. What is the amount of the premium on these bonds at issuance? 2. How much total bond interest expense will be recognized over the life of these bonds? 3. Prepare a straight-line amortization table like Exhibit 14.11 for these bonds.

Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…

A: Solution 1:       Journal Entries - Hillside Date Particulars Debit Credit 1-Jan-21 Cash…

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

A:

Q: Tano Company issues bonds with a par value of $91,000 on January 1, 2019. The bonds’ annual contract…

A: Bond Issued at Par:- When the company issued bonds at the face value of the security is known as the…

Q: Tano Company issues bonds with a par value of $180,000 on January 1, 2019. The bonds’ annual…

A: Discount on bonds at issuance = Par value of bonds - Issue price of bonds

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: Brussels Enterprises issues bonds at par dated January 1, 2019, that have a $3,400,000 par value,…

A: When the bonds are issued at par, then there shall be no premium or discount on bonds payable.

Q: effective-interest basis. Prepare the journal entry to record the interest payment and the…

A: Given that: On January 1, 2020, Swifty Company sold 11% bonds having a maturity value of $700,000…

Q: On March 1, 2018, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A:

Q: On January 1, 2018, Watch Works Incorporated (wWI) issued $77,000 par value, 8%, four-year bonds…

A: Bond valuation refers to a method which is used to compute the current value or present value (PV)…

Q: On January 1, 2018, Global Sales issued $25,000 in bonds for $29,800. These are eight-year bonds…

A: Bonds are issued by a firm in order to raise fund. Bonds are purchased by investors and they get a…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $720,000. The bonds’ annual…

A: Given that: Par value of bonds = $720,000 Issue price of bonds $757,732

Q: Inc., issued $ 20,000,000. of bonds, which have a ten year term and a contract or payment interest…

A: Computation paid to bond holders =face value of Bond ×Contract interest rate ×612…

Q: Pretzelmania, Inc., issues 5%, 10-year bonds with a face amount of $59,000 for $59,000 on January 1,…

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

Q: On January 1, 2021, Splash City issues $450,000 of 7% bonds, due in 10 years, with interest payable…

A: Solution;- Preparation of amortization schedules as follows:-

Q: On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides,…

A: Discount on bonds payable = $ 600000 - $ 544795 = $ 55205

Q: On January 1, 2020, Aumont Company sold 12% bonds having a maturity value of $ 500,000 for $…

A: Solution: Computation of bond price Table values are based on: n= 5     i= 10.00%…

Q: On December 31, 2018, White Company issued $400,000 of five-year, 12% bonds payable for $430,887,…

A: Premium on bonds = Issue value - Face value = $430,887 - $400,000 = $30,887

Q: Quatro Company issues bonds dated January 1, 2021, with a par value of $900,000. The bonds' annual…

A: When a corporation sells bonds to earn cash, bonds payable are recognized. The corporation is a…

Q: On March 1, 2021, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A: 1. Determine the amount(s) related to the bonds Baddour would report in its balance sheet at…

Q: Tano Company issues bonds with a par value of $87,000 on January 1, 2021. The bonds' annual contract…

A: Introduction: Bonds are issued to finance ongoing maintenance as well as infrastructure upgrades.…

Q: On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is…

A: Determine the price of the bond:   Present value of principle amount ($200,000, 4%, 10 years)…

Q: On January 1, 2021, Borg Company issued 4,000 of its 8% P2,000 face value bonds at 97 including…

A: The bonds are issued at discount when the coupon rate of bonds is lower than the stated rate of…

Q: 1, 2021, Tim Co. sold 12% bonds with a face value of P600,000. The bonds mature in five years, and…

A: Interest expense will be the sum of interest expenses for the first two semiannual periods. For this…

Q: Date General Journal Debit Credit January 01, 2021

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

Q: On January 1, 2021, Cheyenne Co. issued ten-year bonds with a face value of $4,700,000 and a stated…

A: Calculate the issue price of the bonds.

Q: On December 31, 2020, Balbond issued 3,000 of its 5-year 6%, P1,000 face value bonds at par.…

A: The effective rate of interest paid is the effective interest rate. The target or required interest…

Q: On January 1, 2019, Bota Company issued a 3-year bonds with a face value of P5,000,000 at 99. The…

A: The yield is the rate at which the present value of the coupons and the redemption amount is equal…

Q: Prepare the journal entry to record the interest payment and the amortization for 2022

A: Given that: On January 1, 2020, Swifty Company sold 11% bonds having a maturity value of $700,000…

Q: March 1, 2021, a company issued a four-year, P3,000,000 face value, 11% term bonds for P3,197,877.…

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

Q: On January 1, 2019, Whitmore Corp Issues $600,000 of 9% 15 year bonds that annually on December 31st…

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

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: Date (A) Interest payment(B) Interest expenses (C) Amortisation on bond discount(C-B=D) Debit…

Q: On January 1, 2021, a company issued serial bonds with a face value of 3,000,000 and a stated rate…

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

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $880,000. The bonds' annual…

A: Answer 1:

Q: Using effective interest method, what amount of the bond discount should be amortized for the six…

A: Bonds:   Bonds are the financial debt instruments issued by the corporations to raise capital for…

Q: On January 1, 2021, Dominguez Company issues 7-year bonds with a face value of $10,000,000 and a…

A: Face Value of bond = $10,000,000 Annual interest rate = 4% Market interest rate = 5% Cash proceeds…

Q: On January 1, 2021, Solis Co. issued its 10% bonds in the face amount of P3,000,000, which mature on…

A: Bonds are an obligation on an entity which is to be repaid on its maturity date. These are issued…

Q: On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A:

Q: Stanford issues bonds dated January 1, 2019, with a par value of $250,000. The bonds' annual…

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

Q: On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides,…

A: Semiannual interest payment = Face value of bonds x rate of interest x 6/12 = $550,000 x 7% x 6/12 =…

Q: On January 1, 2017, Babb Trailers, Inc. issued $6,500,000 of par value bonds for $6,200,000. The…

A: If the Bonds are issued on Discount then Carrying Value of Bonds will be Face Value  - Unamortized…

Q: Sun Corp. markets a 10-year bond issue dated January 1, 2018. The bonds pay interest semiannually…

A: When bond is issued, the discount on bond needs to be amortised over the bond period.

Q: On January 1, 2019, Bay Company issues bonds with a face value of $850,000 that pay 9% interest…

A:

Q: on january 1, 2019, bay company issues bonds with a face value of $850,000 that pay 9% interest…

A:

Q: On July 1, 2021, Spear Co. issued 1,000 of its 10%, P1,000 bonds at 99 plus accrued interest. The…

A: Amount received from the issuance of the bonds is calculated by adding the accrued interest on the…

Q: On January 01, 2019, SUNOD NA ANG LEASES LTD. issued 3-year bonds with face value of P5,000,000 at…

A: PV of cash flows=Present value of Future payments(Interest+Face value) @ YTM

Q: On January 1, 2020, Edison Co. issued eight-year bonds with a face value of P 2,000,000 and a stated…

A: Solution: Bonds are the debt instruments issued by entity to obtain funding. Bonds are having…

Q: On July 1, 2019, Pen Co. issued 4,000 of its 8%, P1,000 face value bonds payable for P3,504,000. The…

A: Introduction: Bonds discount: When bonds are issued at less than its face value called bonds…

Q: On January 1, 2021, Ithaca Corp. purchases Cortland Inc. bonds that have a face value of $210,000.…

A: 1. The journal entry to record the purchase of the bonds: Formulation:

Q: Stanford issues bonds dated January 1, 2019, with a par value of $500,000. The bonds’ annual…

A: Bond discount is defined as an amount through which the bond's market prices, which is lower as…