t December 31, 2020, Martinez Corporation has the following account balances: Bonds payable, due January 1, 2029 $2,500,000 Discount on bonds payable 92,000 Interest payable 82,000 Show how the above accounts should be presented on the December 31, 2020, balance sheet, including the proper classifications.
Q: Burris Corporation is authorized to issue $720,000 of 7% bonds. Interest on the bonds is payable…
A: Accrued interest = Face value of bonds x rate of interest x no. of months / 12 months
Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…
A: Discount on bonds payable is first calculated which is the difference of Bonds par value and the…
Q: Polk Incorporated issued $251,000 of 10% bonds on July 1, 2019, for $260,122.33. The bonds were…
A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS Par value of bonds = $251,000 Semi-annual interest…
Q: On January 1, 2019, LEMON Company purchased bonds with face amount of ₱6,000,000 for ₱6,309,000. The…
A: Bonds:- A bond is a fixed income instrument that shows the loan amount paid by the investor to…
Q: Consider the following independent situations: a. On March 1, 2020, Heide Co. issued at 103 plus…
A: Step 1: a. Compute the net amount of cash received as follows:
Q: The December 31, 2021, statement of financial position of Bordeaux Corporation includes the…
A:
Q: Temple Company has $500,000 of 9% bonds that pay interest on June 30 and December 31 and have an…
A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…
Q: At December 31, 2020, Crane Corporation has the following account balances: Bonds payable, due…
A: Bonds payable are referred to long-term debts of the business, issued to various lenders known as…
Q: In the statement of financial position of Leblanc Company as of December 31, 2020, the following…
A: Redemption of the bonds = Face value of Bonds Payable x Redemption value / 100 = P1,000,000 x 98/100…
Q: Polk Incorporated issued $242,000 of 7% bonds on July 1, 2019, for $251,421.19. The bonds were dated…
A: Given, Face value = $242,000 Issue price = $251,421.19 Coupon rate = 7%/2 = 3.5% Market rate = 6%/2…
Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…
A:
Q: n Jan 1, 2020, Liezel Company issued 10% bonds in the face amount of P5,000,000 that mature on Jan…
A: Solution Given Face value 5000000 Issue price 4580000 Coupon rate 10%…
Q: On July 1, 2020, Wheeler Company purchased $4,000,000 of Duggen Company's 8% bonds, due on July 1,…
A: Amount of interest revenue for the year ended December 31, 2020: = Amount paid on bonds purchased x…
Q: At December 31, 2020, Hyasaki Corporation has the following account balances: Bonds payable, due…
A: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: On January 1, 2019, Gates Corporation issued $100,000 of 5-year bonds due December 31, 2023, for…
A: A bond is type of legal paper or in accounting terms investment securities wherein an investor lends…
Q: On January 2, 2020, Lucan Company issued 9% bonds in the amount of P10,000,000 which mature on…
A: Discount on bonds payable = Par value of bonds - Issue price of bonds Interest expense = Issue price…
Q: On September 1, 2021, ETC Company received P1,032,880 for P1,000,000 face amount, 12% bonds, a price…
A: If the issue price of a bond exceeds its face value then the bond is said to be issued at a premium.
Q: Windsor, Inc. has issued three different bonds during 2019. Interest is payable annually on each of…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: On August 31, 2021, BEAST Company issued at 104 plus accrued interest, three thousand 10% bonds with…
A: A. Prepare all necessary journal entries for the calendar year 2021. Date Particulars Post Ref…
Q: On January 1, 2021, Lh Company was authorized to issue 12% bonds with a face amount of ₱5,000,000.…
A:
Q: If the company issued RO 100,000 , 5% interest, 10-year bonds at 98 on January 1, 2021, which of the…
A: Answer Bond issued = RO98 Face value per BOND = RO100 Discount price per BOND = (RO100 - RO98) = RO2…
Q: On January 1, 2020, CAB Co. issued 9% bonds in the amount of P2,500,000, which mature on January 1,…
A: Interest payment on June 30, 2020 = Face value of bonds x rate of interest x 6/12 =2500000*9%*9/12 =…
Q: On August 31, 2021, BEAST Company issued at 104 plus accrued interest, three thousand 10% bonds with…
A: Since we answer only upto three sub-parts, we shall answer the first three. Please resubmit a new…
Q: On January 1, 2020, Concord Company purchased at face value, a $1060, 10% bond that pays interest on…
A: The interest earned during period but not received during period is recorded as interest receivable.…
Q: Polk Incorporated issued $242,000 of 7% bonds on July 1, 2019, for $251,421.19. The bonds were dated…
A: Journal entries to record the issue of the bonds on July 1, 2019, and the interest payments on…
Q: At December 31, 2017, Hyasaki Corporation has the following account balances: Bonds payable, due…
A: Workings: Bonds payable due = $ 2000000
Q: On January 1, 2020, Crane Company purchased at face value, a $1110, 10% bond that pays interest on…
A: Bonds are instruments acknowledging the debt due from one person to another person to be paid on…
Q: On May 1, 2022, Cucumber Corporation issued $860,000, 12%, 5-year bonds at face value. The bonds…
A: Since you have posted a question with multiple sub-parts , we will do the first three sub-parts of…
Q: Lasa Corporation issued 5,000, 9%, 5-year, RM1,000 bonds dated January 1, 2020, at 100 (a) Prepare…
A: Journal entries are accounting transactions used to record various accounting transactions in the…
Q: On October 1, 2020, Shane Company issued 5,000 12% bonds with face amount of P1,000 per bond at 110.…
A: Note: As per the policy, we are supposed to solve one question at a time. Kindly repost the further…
Q: On March 1, 2021, FLAXSEED Inc. issued at 97, including accrued interest, 2,550 of its 10%, ₱1,000…
A: Bonds are a form of debt or loan that is issued by the corporation, on which interest needs to be…
Q: Al Jabel Corporation is preparing financial statement for the year ended December 31, 2019. For each…
A: A current liability is a liability for an entity that is payable within the next financial year…
Q: On July 1, 2019, Cyclic Inc issued $1,000,000 in principal of 6% bonds due in July 2024. The bond…
A: Bond :— It is one of the source of capital which gives fixed rate of interest and maturity value at…
Q: On January 1, 2020, Entity A issues a debt instrument for a price of P1,250,000. The principal…
A: Interest will be provided at the rate specified in the agreement . Interest will be charged on the…
Q: At December 31, 2020, Coronado Corporation has the following account balances: Bonds payable, due…
A: Total liabilities = Current Liabilities + Non-Current Liabilities
Q: Polk Incorporated issued $231,000 of 11% bonds on July 1, 2019, for $239,209.53. The bonds were…
A: Amortization Schedule:- It is a statement prepared for the premium and discount over the investment…
Q: JR Company showed the following balances in connection with its noncurrent liabilities on December…
A: Bond Payable: Bonds payable are the long term debt ,the amount owed to bond holders by the issuer…
Q: The following section is taken from Ohlman Ltd.'s. statement of financial position at December 31,…
A: Bond is a financial instrument which helps the entity in arranging funds so that the work of entity…
Q: loyd Limited had the following transactions pertaining to debt investments. Jan. 1, 2020 Purchased…
A: Interest = Bond x Interest rate x Time
Q: The December 31, 2021, statement of financial position of Bordeaux Corporation includes the…
A: Bonds payable is a form of liability for the business, on which regular interest payments needs to…
Q: Interlink Company was authorized bonds with face amount of P8,000,00 January 1, 2020, and interest…
A: Journal entry is the practice of recording commercial transactions for the first time in the books…
Q: 5 In the statement of financial position of Magnolia, Inc. as of December 31, 2019, the following…
A: Amount paid on redemption = Face value of bonds x Redemption rate/100 = P1,000,000 x 96/100 =…
Q: On April 1, 2019, Ellison Co. issued 4-year, 7%, $100,000 face value bonds. The bonds were issued at…
A:
Q: On April 1, 2020, Greg Company issued, at 99. plus accrued interest, 4,000 8% bonds with face amount…
A: Given: No. of 8% bonds issued=4000Face value of bonds =P1000Bonds issued at =99 plus accrued…
Q: Compute the December 31, 2020, amount of equity. Compute the debt to assets ratio at December 31,…
A: Hi student Since there are multiple questions, we will answer only first question. For first…
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: Devers Corporation issued $400,000 of 6% bonds on May 1, 2020. The bonds were dated January 1, 2020,…
A:
Q: Included in Vulnerable Corporation's liability account balances at December 31, 2020, were the…
A: Solution: Interest payable at the end of 2020 = (P500,000*8%*3/12) + (P900,000*10%*9/12) +…
At December 31, 2020, Martinez Corporation has the following account balances:
Bonds payable, due January 1, 2029 | $2,500,000 | |
Discount on bonds payable | 92,000 | |
Interest payable | 82,000 |
Show how the above accounts should be presented on the December 31, 2020, balance sheet, including the proper classifications.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Disclosure of Debt On May 1, 2019, Ramden Company issues 13% bonds with a face value of 2 million. The bond contract calls for retirement of the bonds in periodic installments of 200,000, starting on May 1, 2020, and continuing on each May 1 thereafter until all bonds are retired. Required: How would the preceding information appear in Ramdens balance sheets on December 31, 2019, and 2020?Frost Company has accumulated the following information relevant to its 2019 earningsper share. 1. Net income for 2019: 150,500. 2. Bonds payable: On January 1, 2019, the company had issued 10%, 200,000 bonds at 110. The premium is being amortized in the amount of 1,000 per year. Each 1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted. 3. Bonds payable: On December 31, 2017, the company had issued 540,000 of 5.8% bonds at par. Each 1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted. 4. Preferred stock: On July 3, 2018, the company had issued 3,800 shares of 7.5%, 100 par, preferred stock at 108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid. 5. Common stock: At the beginning of 2019, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock. 6. Compensatory share options: Options to acquire common stock at a price of 33 per share were outstanding during all of 2019. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compens Frost Company has accumulated the following information relevant to its 2019 earnings ns is 5 per share. 7. Miscellaneous: Stock market prices on common stock averaged 41 per share during 2019, and the 2019 ending stock market price was 40 per share. The corporate income tax rate is 30%. Required: 1. Compute the basic earnings per share. Show supporting calculations. 2. Compute the diluted earnings per share. Show supporting calculations. 3. Indicate which earnings per share figure(s) Frost would report on its 2019 income statement.Wilbury Corporation issued 1 million of 13.5% bonds for 985,071.68. The bonds are dated and issued October 1, 2019, are due September 30, 2020, and pay interest semiannually on March 31 and September 30. Assume an effective yield rate of 14%. Required: 1. Prepare a bond interest expense and discount amortization schedule using the straight-line method. 2. Prepare a bond interest expense and discount amortization schedule using the effective interest method. 3. Prepare adjusting entries for the end of the fiscal year December 31, 2019, using the: a. straight-line method of amortization b. effective interest method of amortization 4. If income before interest and income taxes of 30% in 2020 is 500,000, compute net income under each alternative. 5. Assume the company retired the bonds on June 30, 2020, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: a. straight line method of amortization b. effective interest method of amortization 6. Compute the companys times interest earned (pretax operating income divided by interest expense) for 2020 under each alternative.
- Refer to the information in RE13-5. Assume that on December 31, 2019, the investment in Smith Corporation bonds has a market value of 12,500. Prepare the year-end journal entry to record the unrealized gain or loss.Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premiumShort-Term Debt Expected to Be Refinanced On December 31, 2019, Excello Electric Company had 1 million of short-term notes payable due February 7, 2020. Excello expected to refinance these notes on a long-term basis. On January 15, 2020, the company issued bonds with a face value of 900,000 for 882,000. On January 22, 2020, the proceeds from the bond issue plus additional cash held by Excello on December 31, 2019, were used to liquidate the 1 million of short-term notes. The December 31, 2019, balance sheet is issued on February 12, 2020. Required: Prepare a partial balance sheet as of December 31, 2019, showing how the 1 million of short-term notes payable should be disclosed. Include an appropriate footnote for proper disclosure.