Ripkin Company issues 9%, five-year bonds dated January 1, 2019, with a $320,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $332,988. Their annual market rate is 8% on the issue date. Required 1. Calculate the total bond interest expense over the bonds’ life. 2. Prepare a straight-line amortization table for the bonds’ life. 3. Prepare the journal entries to record the first two interest payments.

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

A: Date (A) Interest payment(B)7%* face value  interest expenses(C) carrying value*8% Amortisation…

Q: On January 1, 2019, W Sport Corporation issued 10% bonds with a face value of $200,000. The bonds…

A: Bond interest: Bond interest is the interest payment that to be made to bond Holder. Generally a…

Q: On January 1, 2019, X Sports Corporation issued 10% bonds with a face value of $200,000. The bonds…

A: Par value of bonds =$200000Issue price of bonds =$191000Discount on issuance of bonds…

Q: On January 1, 2022, the Meade Group issued $8,000,000 of 11% bonds, dated January 1. Interest is…

A: Compute issue price of bonds as follows: Result:

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: 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: 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: On January 1, 2018, Reese Incorporated issued bonds with a face value of $140,000, a stated rate of…

A:

Q: On January 1, 2018, Tantor Inc. issued $20,000,000 worth of face value bonds, which pay interest…

A: Market Price of the bonds = Present value of principal + Present value of interest payments = face…

Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…

A: PREPARATION OF BOND DISCOUNT SCHEDULE

Q: On January 1, 2021, Mirada, Inc. issued five-year bonds with a face value of $100,000 and an annual…

A: Carrying cost is value of bonds which is shown in books of accounts

Q: On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: On July 1, 2019, Choir Company issued $700,000 face value of 5%, 20 year bonds. The bonds call for…

A: Journal entries: It is the duty of the accountant to record business economic and non economic…

Q: On January 1, 2018, Thomas Company issued $100,000, 5-year, 12% bonds, with interest payable…

A: Bond is a financial instrument used to raise funds from public by various companies or institutions…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. Explain the amount of the premium on these bonds at issuance.

Q: McNeil Corporation issued $750,000 of 6​%, 10​-year bonds payable on January​ 1, 2019. The market…

A: Introduction: Interest amount: Interest is charged on the Principal amount. Interest is calculated…

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: On December 31, 2019, Wintergreen, Inc., issued $150,000 of 7 percent, 10-year bonds at a price of…

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

Q: On June 1, 2019, Swifty Company sold $2,460,000 in long-term bonds for $2,157,700. The bonds will…

A: Interest payment = $2,460,000*8% Interest payment = $196,800

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, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable…

A: 1. Workings: 600,000*7%*6/12= 21,000 Interest paid= 6% interest on carrying value for 6 months…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $730,000. The bonds’ annual…

A: Formula: Premium on Bonds = Sell price - PAR value Deduction of PAR value from Sell price of bonds…

Q: Quatro Co. issues bonds dated January 1, 2019, with a par value of $400,000. The bonds’ annual…

A: 1. What is the amount of the premium on these bonds at issuance? When a company issues bonds at the…

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: Xonic Corporation issued 8 million of 20 year, 8 percent bonds on April 1, 2018, at 102. Interest is…

A: a. Following is the journal entry of issuance of bonds:

Q: Romero issues $3,400,000 of 10%, 10-year bonds dated January 1, 2019, that pay interest semiannually…

A: As posted multiple sub parts we are answering only first three sub parts kindly repost the…

Q: On January 1, 2021, Nebraska Company issued a 3-year bond with face value of P1,500,000 and a 9%…

A: Gain on retirement of bonds is the difference between the net carrying value of the bond on the date…

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: 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, 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: Sterling Company issued $100,000 of its 8%, five-year bonds on January 1, 2017, at 98. Interest is…

A: Compute cash interest on the bonds up to April 1, 2019 as shown below:

Q: On January​ 1, 2018​,  Lane Unlimited issues 15​%, 10​-year bonds payable with a face value of…

A: 1) Premium on bonds payable = 1800 bonds * $5 = $9,000 It has to be amortised over the life of bonds…

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

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

Q: On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-year bonds. The bonds pay interest…

A: Prepare journal entries as follows: Result:

Q: On June 1, 2019, Bramble Company sold $3,120,000 in long-term bonds for $2,736,600. The bonds will…

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

Q: On May 1,2020, ABC Corporation issued a 5-year, 10%, 1,000 of the P 5,000 face value bonds with a…

A: We know that the current carrying value of the bond is the present value of all the cash payments to…

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 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: 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: Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2019. The bonds pay interest…

A: Bonds represent a contract containing interest charges indicating a method of raising funds that…

Q: On January 1, 2018, Ellison Co. issued 8-year bonds with a face value of $300,000 and a stated…

A: The value of bonds are determined and based on the market rate of interest. Sometimes, the…

Q: On July 1, 2021, Swifty Satellites Corporation issued $1,400,000 of 10-year, 9% bonds to yield a…

A: The question is based on the concept of Financial Accounting.

Q: Gomez issues $240,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest semiannually on…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

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

A: Premium on bonds at the time of issuance = Issue price of bonds - Face value of bonds

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…