Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January 1, 20X5. Interest on these bonds are payable semi-annually on July 1 and January 1 of each year. P7,000,000 face value bonds were sold on April 1, 20X5 at 106. The corporation amortizes premium only at the end of the fiscal year, using the straight-line method. On April 1, 20x8 P4,000,000 face value bonds were purchased and retired at 99 plus accrued interest. Required: 1. Give all the necessary journal entries for the year 20X5-20X6 including adjustments relating to the bond issuance. Use memorandum approach. Give all the necessary journal entries for the year 20X8 including adjustments relating to the retirement of the bonds.

Q: Trog Industries pays and records the semiannual interest on its $520,000, 10-year, 6% bonds…

A: Here in this question, we are required to make journal entry for interest payment and discount…

Q: AAA Inc. purchased P400,000 of BBB Corp. ten-year bonds with a stated interest rate of 8 percent…

A: GIVEN   AAA Inc. purchased $400,000 of BBB Corp. ten-year bonds with a stated interest rate of 8%…

Q: n December 1,2018, the Emerald Corporation issued five-year, non-convertible P 5,000,000 face value…

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

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

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A: Under the Effective interest method, the premium on the issue of bonds shall be written off over the…

Q: On June 30, 2006, Naruto Company had outstanding 9%, P5,000,000 face value bonds maturing on June…

A: Bond: Bond is the financial security which allows the investors to have the fixed interest income…

Q: On December 31, 2020, Fame Company sold a 12% serial bond issue with face amount of P7,000,000 for…

A: Bond Payable The main sources of generation liquidity into the business entity to raise the issue of…

Q: Triple V Corporation was authorized to issue P10,000,000 face value, 10%, 10 year bonds on January…

A: SOLUTION- BONDS ARE INVESTMENT SECURITIES WHERE IN INVESTOR LENDS MONEY TO A COMPANY OR A GOVERNMENT…

Q: On January 2, 2020, Progresso Inc. purchased $150,000 of Cambells Corporation bonds at a discount of…

A: When the stated interest rate of the bond is less than the market interest rate then the bond is…

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: Cupola Fan Corporation issued 10%, $600,000, 10-year bonds for $570,o00 on June 30, 2021. Debt issue…

A: Bonds refers to the fixed income debt which represents loan made by an investor to a borrower. It is…

Q: On January 1, 2020, Latvia Company issued 3-year bonds with face amount of 5,000,000 at 98.…

A: Effective interest method is method used to recognise the interest expense for the year, when…

Q: On January 1, 2020, Latvia Company issued 3-year bonds with face amount of 5,000,000 at 98.…

A: On 01.01.2020, Latvia Company's Issued 3 years bonds with face value = 5000000 Issued price = 98…

Q: On June 1, 2021, VIXEN Company received ₱1,077,200 plus accrued interest for 12% bonds with a face…

A: SOLUTION- BOND  IS A FIXED OBLIGATION TO PAY  THAT IS ISSUED BY A CORPORATION OR GOVERNMENT ENTITY…

Q: An entity issued ten-year P1,000,000 debenture bonds at the beginning of the current year. The bonds…

A: The annual stated interest rate refers to the rate applied to the par value for the periodic…

Q: On January 1, $932,000, 5-year, 10% bonds, were issued for $904,040. Interest is paid semiannually…

A: Solution: Discount on issue of bond = $932,000 - $904,040 = $27,960 Nos of semiannual periods = 5*2…

Q: On January 1, $925,000, 5-year, 10% bonds, were issued for $897,250. Interest is paid semiannually…

A:

Q: Alpha Corporation sold and issued to Beta Corporation $400,000 of 8% (cash payable semiannually on…

A: Bond: It is a fixed income asset reflecting a loan to any borrower issued by an investor.

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…

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

Q: On January 1, 2021, RANCY Company received ₱107,720 for a ₱100,000 face amount, 12% bond, a price…

A: Semiannual interest payment = face value of bonds x rate of interest x 6/12 = 100000*12%*6/12 =…

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

A:

Q: On June 1, 2021, VIXEN Company received P1,077,200 plus accrued interest for 12% bonds with face…

A: "Since you have asked multiple question we will solve the first three sub part question for you.  If…

Q: On April 30, CHIA-SEED Company issued 7,000 of 15% P1,000 bonds at 95. The bonds have a five- year…

A: Y/2 = (I + (F - NI)/n)/((F + P)/2)

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: n January 1, 2020, Mariel Company issued bonds payable with face amount of P8,000,000 and 10% stated…

A: When bond trades or the market price of the bond is below $1000 or par value it is called a discount…

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: On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: INTEREST EXPENSE IS THE COST INCURRED BY AN ENTITY FOR THE BORROWED FUNDS .

Q: On May 31, 2020, BLUE Company issued 6% bonds with face amount of ₱4,000,000 for net proceeds of…

A: Period Interest Payment Interest Expense Discount Amortization Bond Amortized Cost May 31, 2020…

Q: On June 1, 2019, Vape Inc. issued P12,000,000 of 10% bonds to yield 12% effective rate. Interest is…

A: The carrying value of a bond is the the net amount between the bond's face value plus any…

Q: On January 1, $858,000, 5-year, 10% bonds, were issued for $832,260. Interest is paid semiannually…

A: When the issue price is less than the face value of bonds the bonds are said to be issued on…

Q: On January 1, $2,000,000, 5-year, 10% bonds, were issued for $1,960,000. Interest is paid…

A: Bond is a financial instrument used by financial institutions to raise funds. It is a security for…

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…

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A: Bond is an investment security with low risk and low return. A fixed rate of interest is attached…

Q: CityMall Inc had an outstanding P5, 000,000 of 11% bonds (interest payable July 31 and January 31)…

A: Given that, Outstanding 11% bonds value = P5000000 New issue of 10% bonds value = P7000000 Total…

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A: Once a bond is issued at a premium, the amount will be amortized over the years through to its…

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

Q: On January 1, $877,000, five-year, 10% bonds, were issued for $850,690. Interest is paid…

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

Q: Marshalls Corporation completed a $680,000, 7 percent bond issue on January 1, 2021. The bonds pay…

A: SOLUTION-   BOND  IS A FIXED OBLIGATION TO PAY THAT IS ISSUED BY A CORPORATION OR GOVERNMENT ENTITY…

Q: RCM Corporation, a calendar-year firm, is authorized to issue $200,000 of 10 percent, 20-year bonds…

A: Solution...   Issue price = $200,000  RATE OF INTEREST = 10%  Interest expenses accrued on April 1 =…

Q: On July 1, Year 2, MODESTA Company purchased P10 million of West Company’s 8% bonds due on July 1,…

A:

Q: On January 1, $834,000, 5-year, 10% bonds, were issued for $808,980. Interest is paid semiannually…

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

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

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Q: Elizabeta Corporation, a calendar year entity, issued bonds with the following terms: Face value of…

A: This is an amortization method is used to amortize discounts, premiums and bond issue costs in the…

Q: On September 15, 2020, the Corporation sold bonds with an aggregate principal amount of $500,000,000…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

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: 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…