Sarasota Corp. retires its $928000 face value bonds at 105 on January 1, following the payment of annual interest. The carrying value of the bonds at the redemption date is $962750. The entry to record the redemption will include a debit of $34750 to Premium on Bonds Payable. credit of $11650 to Gain on Bond Redemption. credit of $34750 to Loss on Bond Redemption. debit of $46400 to Premium on Bonds Payable.

Q: On June 30, Jamison Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: Payment of interest on December 31 = Face value of bonds x rate of interest x no. of months /12…

Q: On 09-01-15, O issued $8,000,000 of its 6%, 5-year callable term bonds dated 09-30-15. The bonds pay…

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

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

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: Hill Corporation issued $1,500,000 of 11% bonds at 98 on January 2, 2019. Interest is paid…

A: Workings:

Q: Oriole Company retires its $540000 face value bonds at 102 on January 1, following the payment of…

A: The company is paying value of the bonds is $519,750  And bonds carrying value is  $540,000*102% =…

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, 2017​, Delaney Corporation issued five​-year, 10​% bonds payable with a face value of…

A: Dear student, we can not solve more than three sub-parts of a question if a question has more than…

Q: Franklin Corporation issues $91,000, 10%, five-year bonds on January 1 for $95,100. Interest is paid…

A: Bonds are a form of debt or loan issued by the company. Regular interest payments needs to be made…

Q: On January 1, 2021, Luyang Company issued 3-year bonds with face amount of P5,000,000 at 98.…

A: Bonds payable is a liability account that holds the amount that the issuer owes to bondholders.…

Q: DEF Company was authorized to issue 12%, 10-year bond with face amount of P20,000,000 on January 1,…

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 April 30, one year before maturity, Middleton company retired $200,000 of its 9% bonds payable at…

A: The retirement amount on bond is $202,000. The book value of bond is $196,000.

Q: On March 31, 2018, Wins Corporation issued $2,000,000 of its 6%, 10-year bonds for $1,758,200…

A: S.No. Date Particulars Debit Credit 1 March 31, 2018 Cash  $  1,758,200.00       Discount on…

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, 2020, Fergus Corporation issued $800,000, 10%, 5-year bonds. Thebond interest is…

A: The correct option is option “d”.

Q: Whispering Company issued $480,000 of 10%, 20-year bonds on January 1, 2020, at 102. Interest is…

A: JOURNAL ENTRIES (1). Issue of bonds: DATE  PARTICULARS  DEBIT  CREDIT 1/1/20 Cash (480,000 /…

Q: Hill Corporation issued $1,200,000 of 7% bonds at 99 on January 2, 2019. Interest is paid…

A: Reacquisition of a bond refers to the repayment of the amount borrowed by issuing the bonds in the…

Q: . Prepare the entry to record the redemption of the bonds.

A: Solution:- Journal Debit Credit Bonds Payable $500,000   Loss on retirement…

Q: On January 1, 2022, Nine Company sold 12% bonds with a face value of P500,000. The bonds mature in…

A: A bond is a long-term financing debt. Interest (called a coupon) is paid periodically on the bond to…

Q: Jen Corporation retires its P 500,000 face value bonds at 105 on January 1, following the payment of…

A: Bonds when redeemed at more than the carrying value of the bonds they record loss .

Q: On January 1, 2021, LACEA COMPANY issued 7% term bonds with a face amount of P1,000,000 due January…

A:

Q: On January 2, 2012, Tamarisk Corporation issued $1,650,000 of 10% bonds at 96 due December 31, 2021.…

A: First step is to compute the total discount on the issue of bonds on jan 2012.This will be computed…

Q: Godwin corporation retired its bonds at 105 on january 1 after the payment of interest. The face…

A: Bond retirement refers to the cancellation or repurchase of bonds that were earlier issued. The…

Q: On January 1, 2020, Laudon Corporation issued $5,000,000 of 10% bonds at 102 due December 31, 2029.…

A: The bond issued at 102 means the bond has issued at premium & issue price is 102% of face value.…

Q: Josselle Corporation retires its bonds at 106 on January 1, after the payment of interest.The face…

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

Q: On January 1, 2021, Masbate Company issued 5-year bonds with face amount of P5,000,000 at 110. The…

A: Amortization is the total time taken to repay a mortgage fully. So it denotes the total period of…

Q: On January 1, 2020, Jupiter Company reported 9% bonds payable of P4,000,000 less unamortized…

A: Bonds refer to borrowing security that is issued by the company in order to raise funds from the…

Q: Hillis Corporation issued $600,000 of 13% bonds on January 1, 2019, for $614,752.24. The bonds are…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Kingbird, Inc. issued $430,000 of 5-year, 7% bonds at 97 on January 1, 2020. The bonds pay interest…

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

Q: . Dechow, Inc., issued $250,000 of 8%, 15-year bonds at 97 on July 1, 2009. Interest is payable…

A: a.Prepare journal entry to record issuance of bonds payable and the retirement of the bonds.

Q: (a) Novak Co. sold $2,080,000 of 12%, 10-year bonds at 105 on January 1, 2020. The bonds were dated…

A: Bond discount is the amount by which the selling price (or issue price or market price) of the bond…

Q: Matt Perry, Inc. had outstanding $6,000,000 of 11% bonds (interest payable July 31 and January 31)…

A: Step 1: Journal entry for recording the issuance of bonds: The above entry is recorded for the…

Q: Ellison Corporation issued $300,000, 8%, five-year bonds on January 1, 2019, for$325,591 when the…

A: Given, Carrying Value of bond = $325,591 Interest Rate = 6%

Q: On January 1, 2018, Nebal Manufacturing Corporation issued $5,000,000, 10%, 6-year bonds dated…

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

Q: On January 1, 2021, Solo Inc. issued 1,300 of its 8%, $1,000 bonds at 97.7. Interest is payable…

A: The carrying value of the bond as on December 31, 2021 = Net Proceeds + First year discount…

Q: Nasreen Company issues $2,000,000, 10-year, 8% bonds at 97, with interest payable each January 1.…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current…

A: During retirement of a bond, if its book value is more than the cash paid to the bond holders it…

Q: Lahey Corporation retires its $800,000 face value bonds at 105 on January 1, following the payment…

A: 1. Redemption of Bonds - In the current case, the company holds bonds with a face value of $100 of…

Q: On April 30, one year before maturity, Middleton Company retired $200,000 of its 9% bonds payable at…

A: Introduction: The issuer acknowledges a loss on retirement if the price paid to retire a bond…

Q: On January 1, 2022, Huff Co. sold P1,000,000 of its 10% bonds for P885,296 to yield 12%. Interest is…

A: The bonds are the financial instruments for the business that are issued by business to raise money…

Q: Eaton Company issued $600,000 of eight percent, 20‑year bonds at 106 on January 1, 2013. Interest is…

A: Issue Price of Bonds: 600,000 x 106/100 = $636,000 Face value of Bonds = $600,000 Premium on Bonds =…

Q: On January 1, 2020, Whispering Corporation redeemed $510,000 of bonds at 98. At the time of…

A: When the bonds are issued at premium, the premium on bonds amortised needs to be carried forward and…

Q: On January 1, 2010, Halston Enterprises issued 8%, 20-year bonds with a face amount of $5,000,000 at…

A: Interest=Face amount×Interest rate2=$5,000,000×8%2=$200,000

Q: On march 1,2020, perseverance company issued bonds with a face amount of 5,000,000 for 4,730,000.…

A: Bond is a fund raising instrument which is issued by the companies in order to raise fund. The…

Q: On July 31, 2018, Hummbug Corporation issued $100,000, 5%, 20-year bonds for $113,678 when the…

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

Q: On January 1, 2019, Electro Inc. issued $740,000 of 7.5%, four-year bonds that pay interest…

A: Journal entry is record of a transaction in accounting system

Q: On January 1, 2020, Naples Co. issued $280,000 of 10-year bonds at 96. The bonds pay 6% cash…

A: Total discount on bonds  retired on June 1, 2020 = Total amount of bonds issued x % of bonds retired…

Q: On January 1, 2020, Henderson Corporation redeemed $500,000 of bonds at 99. At the time of…

A: Calculate the amount of cash paid to redeem the bond.