Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $42,975 on January 1. The market interest rate for bonds of similar risk and maturity is 6%. Salt Foods receives interest semiannually on June 30 and December 31.   1. & 2. Record the necessary entries regarding the bonds.

Q: On July 1, Year 1, Khatri Industries Inc. issued $18,000,000 of 10-year, 5% bonds at a market…

A: Coupon rate = 5%/2 Coupon rate = 2.5%   Market rate = 6%/2 Market rate = 3%   Number of periods =…

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: On September 1, Deutsch Limited issues 8%, 5-year bonds payable with a maturity value of OR 20,000.…

A: Journal entries are the transactions that are recorded in the primary book. They are chronological…

Q: On July 1, Year 1, ABC Corp purchased 6.00% bonds having a maturity value of $100,000 for $105,079.…

A: Correct option is a. $142 Unrealized gain or loss recorded under OCI under December 31 year 1 is…

Q: On January 1, Splash City issues $310,000 of 7% bonds, due in 15 years, with interest payable…

A: Bonds are a form of loan or debt issued by the company, on which regular interest payments needs to…

Q: On the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to…

A: a.

Q: Walker Corporation issued 10%, 5-year bonds with a par value of $10,000,000 on January 1, 2005.…

A: Bonds are a form of liability for the business, for which regular interest payments needs to be made…

Q: On June​ 30, Power Company issues 5%​, five​-year bonds payable with at face value of $60,000. The…

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

Q: XYZ Corporation issues $1.000,000 of face value bonds that mature in 20 years at a discount on…

A: Interest accrued = face value of bonds x rate of interest x no. of months/12 = 1000000*6%*12/12 =…

Q: Assume that the bonds were classified as debt investments at fair value through profit or loss.…

A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…

Q: Franklin Corporation issues $98,000, 10%, five-year bonds on January 1 for $102,400. Interest is…

A: Compute the unamortized premium as of July 1.   Unamortized premium as of July 1 = Issue price of…

Q: On January 1, Year 1, A Company purchased P500,000, 12% bonds of Erika Company for P464,882, a price…

A: Working Notes :-                                  Discount on purchase of…

Q: On the first day of its fiscal year, Ebert Company issued $20,000,000 of 5-year, 11% bonds to…

A: Under the Effective interest method, the Bond issue shall be valued at the present value of Bond…

Q: On January 1, Year 1, Wayne Company issued bonds with a face value of $635,000, a 5% stated rate of…

A: Income statement is prepared with a view to ascertain the earnings of an entity over a specific…

Q: On January 1, Year 1, Grow Company purchased P 1,000,000, 12% bonds of Glow Company for P 1,063,394,…

A:

Q: Franklin corporation issues $81,000, 8%, 5-year bonds on January 1, for $84,650. Interest is paid…

A: BOND IS A SECURITY UNDER WHICH THE DEBT PRINCIPAL AMOUNT IS REPAID ALONG WITH INTEREST OVER A…

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $40,000 on…

A: Interest received = Face value of Investment x rate of interest x no. of months /12 =…

Q: On June 30th dogwood limited issues 8%, 20 year bonds payable with a face value of $100,000. The…

A: Here,it is assumed that face value per bond is $ 100. Therefore number of bonds issue=$100,000/$100…

Q: b. Record the entry for the purchase of the bonds by West Company on July 1. Date Account Name…

A:

Q: On April 1, 2018, Western Communications, Inc., issued 12% bonds, dated March 1, 2018, with face…

A: 1.

Q: Ratzlaff Company issues $2 million, 10-year, 8% bonds at 97 (i.e. at 97% of face value), with…

A: The journal entry would be as under : Particulars Debit ($) Credit ($) Cash 1,940,000…

Q: On the first day of its fiscal year, Chin Company issued $19,500,000 of five-year, 6% bonds to…

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

Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley…

A: a. Prepare the journal entry to record the issuance of bonds on April 1.

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on…

A: Cash received = Face value of Investment x rate of interest x no. of months /12 = $(1000*40)*7%*6/12…

Q: On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at pa…

A: Interest amount needs to be properly recorded in the books of the company as and when it was accrued…

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $37,282 on…

A: Cash received = Face value of Investment x rate of interest x no. of months /12 = $(1000*40)*7%*6/12…

Q: Salt Foods purchases thirty $1,000, 6%, 10-year bonds issued by Pretzelmania, Inc., for $27,868 on…

A: Interest revenue = Carrying value of Investment x market rate of interest x no. of months /12 =…

Q: On January 1, 20x6, SAM COMPANY. issued 3-year bonds with a face value of P3,000,000 for P2,850,756.…

A: The interest expense is the cost which a firm is required to pay for the amount borrowed in the form…

Q: On the first day of its fiscal year, Ebert Company issued $23,000,000 of 5-year, 8% bonds to finance…

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

Q: On July 1 of the current year, West Company purchased for cash, 40, $10,000 bonds of North…

A: SOLUTION-   WORKING- 1- PRESENT VALUE OF PRINCIPLE AT 3% AND 6 PERIODS = 40 *10000*0.8375…

Q: On January 1, Year 1, Tina Company purchased bonds with face value of P4,000,000 for P4,206,000. The…

A: As per IFRS 9, Financial instruments, if any financial asset is held to collect the contractual cash…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

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

Q: Falcon Company purchased 10% bonds with a face value of $200,000 at par plus accrued interest on…

A: Correct option with explanation are as follows

Q: n May 1, Knox Inc. purchases $100,000 of 10-year, 6% Madison Corporation bonds dated March 1 at 100…

A: Interest on May 1 = Face value of bonds x rate of interest x no. of months / 12 = $100,000 x 6% x…

Q: Salt Foods purchases forty $1,000, 7%, 10-year bonds issued by Pretzelmania, Inc., for $40,000 on…

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

Q: On April 1, year 1, Opera Corporation issues P60 million of 12%, 10-year bonds payable at par.…

A: Introduction: Interest amount: Interest is a charge levied on the principal amount. Interest is…

Q: On February 1, Hansen Company purchased $84,000 of 5%, 10-year Knight Company bonds at their face…

A: Accrued interest=Face value*coupon rate*n/12

Q: Record the entry for the purchase of the bonds by West Company on July 1.

A: Computation of bond price  Present value of bond = Cash inflow for each period x PVIFA ( i, t) +…

Q: Pinkerton Inc. purchased 3-year bonds from Beam Ltd. on January 1, 20X0. Bonds have a face value of…

A:

Q: Franklin Corporation issues $50,000, 10%, 5-year bonds on January 1, for $52,100. Interest is paid…

A: Total amount on premium on bonds issue = Issue price - Face value of bonds = $52,100 - $50,000 =…

Q: On February 1, Hansen Company purchased $120,000 of 5%, 20-year Knight Company bonds at their face…

A: Calculate the amount of interest received on $120,000 from February 1 to July 1 (5 months).

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued…

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

Q: n July 1 of the current year, West Company purchased for cash, 8, $10,000 bonds of North Corporation…

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, Year 1, Tina Company purchased P500,000, 12% bonds of Erika Company for P464,882, a…

A: Working Notes :-                       Company intended to collect the principal and…