The balance sheet of Indian River Electronics Corporation as of December 31, 2015, included 12.25% bonds having a face amount of $90 million. The bonds had been issued in 2008 and had a remaining discount of $3 million at December 31, 2015. On January 1, 2016, Indian River Electronics called the bonds before their scheduled maturity at the call price of 102. Required: Prepare the journal entry by Indian River Electronics to record the redemption of the bonds at January 1, 2016.

Q: On January 1, 2014, Dubai Corporation purchased 12% bonds, having a maturity value of $600,000, for…

A: Bonds receivable: It is an investment in bonds of an organization which pays a fixed rate of…

Q: On January 1, 2018, Darnell Window and Pane issued $18 million of 10-year, zero-coupon bonds…

A: 1.

Q: On January 1, 2015, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000,a…

A: Amortization Schedule: An amortization schedule is a table that shows the details of each loan…

Q: On October 1, 2016, Blue Corp. issued $732,000, 8%, 10-year bonds at face value. The bonds were…

A: Interest expense shall be recorded foe 3 months is 2016 and for 9 months in 2017

Q: The balance sheet of Indian River Electronics Corporation as of December 31, 2017, included 12.25%…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On January 1, 2016, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds…

A:

Q: On January 1, 2018, Surreal Manufacturing issued 550 bonds, each with a face value of $1,000, a…

A: An amortization bond schedule is that in which the yearly principal amount is reduced with the…

Q: (Debt Securities) Presented below is an amortization schedule related to Spangler Company’s 5-year,…

A: Prepare the journal entries (a to f)

Q: On January 1, 2017, the board of directors of Papermaker Inc. issued 9-year, 2% bonds with a par…

A: A journal entry is used to record day-to-day transactions of the business by debiting and crediting…

Q: Grocery Corporation received $300,328 for 11 percent bonds issued on January 1, 2015, at a market…

A: Table presentation of each account Account (a) Financial Statement (b) Issuance (c ) Interest…

Q: Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2017, at 84.95 to yield 12%.…

A: a. Date Account Title and Explanation Debit Credit 1-Jan Cash ($800,000*119.792%) $958,336…

Q: On January 1, 2016, Darnell Window and Pane issued $18 million of 10-year, zero-coupon bonds for…

A: 1.

Q: The Gorman Group issued $900,000 of 13% bonds on June 30, 2016, for $967,707. The bonds were dated…

A: 1.

Q: On January 1, 2016, Broker Corporation issued $3,000,000 par value 12%, 10-year bonds which pay…

A: Issue Price of Bond=Present Value of Maturity amount+Maturity value of Interest payment   Present…

Q: Global Company issued $1,200,000, 10-year bonds for $1,361,042 on January 1, 2012. The stated…

A: Bond: A bond is a financial instrument in the which borrower would pay the periodic interest to the…

Q: Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July…

A:

Q: On January 1, 2006, Naruto Company issued 9% bonds in the amount of P5,000,000, which mature on…

A: To answer above question, following bond amortization table will be compiled till 30 June, 2006:…

Q: Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on…

A: Bond is a financial instrument to raise funds. The company issues bonds to raise an amount of money…

Q: On January 1, 2018, Surreal Manufacturing issued 560 bonds, each with a face value of $1,000, a…

A: Cash Interest=Face Value×Interest rate=$560,000×3%=$16,800

Q: Danner Company sold $500,000 of 8 percent, 20-year bonds on April 1, 2014, at 105. The semiannual…

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

Q: Shaw Company issued P5,000,000, 12% bonds on January 1, 2012. The principal of the bonds were paid…

A:

Q: The December 31, 2017, balance sheet of Ming Inc. included 12% bonds with a face amount of $107…

A: Solution: Journal entry is as under: Particulars Debit Credit Bond payable 107000000   Loss…

Q: The balance sheet at December 31, 2016, for Nevada Harvester Corporation includes the liabilities…

A: Reasoning behind classifications: Bonds are classified as current liability. The debt is currently…

Q: n January 1, 2006, Naruto Company issued its 10% bonds in the face amount of P5,000,000, which…

A: Adjusted unamortized bond premium at year end = Total bond premium - amortized bond premium for the…

Q: The long-term liability section of Eastern Post Corporation’s balance sheet as of December 31, 2017,…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: On March 1, 2016, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $160…

A: 1.Working notes:

Q: AI Tool and Dye issued 8% bonds with a face amount of $160 million on January 1, 2018. The bonds…

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

Q: Laurance Corporation issued P 400,000, 7%, 20-year bonds on January 1, 2017, for P 360,7217 This…

A: Date Account Titles Debit Credit a )January 1, 2017 Cash $360,7217     Discount on Bonds Payable…

Q: Polk Incorporated issued $213,000 of 9% bonds on July 1, 2016, for $220,918.63. The bonds were dated…

A: Concept: The amortization is defined as the accounting techniques that are used to lowering the book…

Q: Ajax issued $2,500,000 in bonds on January 1, 2014 at a stated rate of 4% and a yield of 5%.…

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

Q: On February 1, 2016, Strauss-Lombardi issued 9% bonds, dated February 1, with a face amount of…

A: 1.

Q: On January 1, 2017, the board of directors of Papermaker Inc. issued 9-year, 2% bonds with a par…

A: 2. Discount on Bonds Payable  = Face value of bonds x (100 - issue price) = $600,000 x (100 - 97%) =…

Q: In order to finance Plywood Company’s planned expansion, 10%, P5,000,000 face value bonds were…

A: The gain or loss on the early extinguishment of debt would be computed by deducting the amount from…

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: The long-term liability section of Eastern Post Corporation’s balance sheet as of December 31, 2015,…

A: Bond is an instrument which represent the amount of loan raised by the borrower from the lender. It…

Q: On January 1, 2015, Glover Corporation issued $2,400,000 of 5-year, 8% bonds at 95. The bonds pay…

A: a). Face value of bond = $2,400,000 (24,000 bonds)                                   = $120,000…

Q: On January 2, 2016, Concrete Master Construction, Inc. issued $500,000, 10-year bonds for $574,540.…

A: Bonds refer to the borrowing security that is issued by the company to raise finds from the market…

Q: Wildhorse Co. issued 10%, 6-year, $2,739,400 par value bonds that pay interest semiannually on…

A:

Q: On January 1, 2015, Loop Raceway issued 600 bonds, each with a face value of $1,000, a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Clem Company issued $800,000, 10-year, 5 percent bonds on January 1, 2015. The bonds soldfor…

A: In this question, we have required to pass the journal entry of issue of the bond issue and the…