Wayne Company issued bonds with a face value of $1,020,000, a 10% stated rate of interest, and a 10-year term. The bonds were issued on January 1, Year 1, and Wayne uses the straight-line method of amortization. Interest is paid annually on December 31.   Assuming Wayne issued the bonds for 106, what is the carrying value of the bonds on the December 31, Year 1 balance sheet?

Q: On January 1 of the current year, Barton Corporation issued 8% bonds with a face value of $91,000.…

A: When bonds are issued at a price less than the face value, then it means bonds are issued at a…

Q: The Levi Company issued $100,000 of 12% bonds on January 1 of the current year at face value. The…

A: When bonds issued at par, there is no amortization of discount or premium required.

Q: On January 1, Elias Corporation issued 7% bonds with a face value of $94,000. The bonds are sold for…

A: Bonds will pay fixed amount of interest on face value of the bond on monthly/ quarterly/ half…

Q: Renfro Company issued $300,000 of 8%, 10-year bonds at 102. Interest is paid annually, and the…

A: We have the following information: Renfro Company issued $300,000 of 8%, 10-year bonds at 102%…

Q: Manly Company issued $400,000 of 9%, 10-year bonds at 102. Interest is paid annually, and the…

A: Bonds are defined as financial instruments used by companies to raise additional funds from the…

Q: On January 1, Remington Corp issued $500,000 of 15-year, 10% bonds payable, yielding an effective…

A:

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

A: When the bonds are issued at coupon rate lower than market rate, they are usually issued at…

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: The Levi Company issued $80,000 of 6% bonds on January 1 of the current year at face value. The…

A: Lets understand the basics. When bond is issued at face value then for calculating interest expense,…

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

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, Elias Corporation issued 9% bonds with a face value of $88,000. The bonds are sold for…

A: Capital raising sources are: Issue of shares Issue of debt securities Raise funds from financial…

Q: On January 1, Year 1, Young Company issued bonds with a face value of $111,000, a stated rate of…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.

Q: The Levi Company issued $78,000 of 11% bonds on January 1 of the current year at face value. The…

A: Semi-annual interest=Face value of bonds×Coupon rate×6 months12 months

Q: The Levi Company issued $94,000 of 8% bonds on January 1 of the current year at face value. The…

A: Semiannually interest payment = Face value of bonds x rate of interest x 6/12 = $94000 x 8% x 6/12 =…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries are used to record accounting transactions of the business and involves an debit in…

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, Elias Corporation issued 8% bonds with a face value of $74,000. The bonds are sold for…

A: Interest expense 1st year= face value *8% = $74, 000 *8% =$5920

Q: Emerald, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries is a process of recording various transactions in a chronological order. It is…

Q: The Levi Company issued $70,000 of 11% bonds on January 1 of the current year at face value. The…

A: Formula: Interest amount = Principal amount x interest rate x Number of days. Interest is a charge…

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 6% bonds, with interest payable…

A: Premium on Bonds Payable = Issue price of bonds - Face value of bonds = $2,125,000 -$2,000,000 =…

Q: Coffman Company sold bonds with a face value of $1,000,000 for $880,496. The bonds have a coupon…

A: Bonds Payable - Bonds is the amount payable at fixed interest rate at fixed period. It is the long…

Q: On January 1, Year 1, Hanover Corporation issued bonds with a $46,500 face value, a stated rate of…

A: Straight line method  amortization= Premium or discount/ number of period bond is outstanding.…

Q: Moss Co. issued $101,000 of five-year, 12% bonds, with interest payable semiannually, at a market…

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

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

A: Bond issued = $50,000 Interest rate on bond = 10% Number of years = 5 year Cash received = $52,100

Q: On January 1, when the market interest rate was 9 percent, Seton Corporation completed a $150,000, 8…

A: Interest Expense : Carrying value x 9% Cash Paid : 150,000 x 8% Discount Amortized : Interest…

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: Milan Company issued bonds with a face value of $275,000 on January 1, Year 1. The bonds had a 7…

A: Answer:- a: Total amount of interest Interest paid on December 31 = 275000 x 7% =$19,250

Q: a.  Journalize the entries to record the following: Issuance of the bonds. First semiannual…

A: Given: Price of the bond issued = $ 10,000,000 Rate of the bond = 7 % Interest rate = 8 % Cash…

Q: On the first day of its fiscal year, Chin Company issued $15,300,000 of five-year, 8% bonds to…

A:

Q: On January 1, Year 1, Hart Company issued bonds with a face value of $150,000, a stated rate of…

A: Amortisation Table Date Cash Payment Interest Expense Premium Amortization Carrying Value…

Q: On January 1 of Year 1, Congo Express Airways issued $2,500,000 of 5% bonds that pay interest…

A: Bonds Payable: They are financial instruments representing the company's commitment to pay back a…

Q: On January 1, 20x1, Kageyama Corporation issues P1,500,000 of 10% bonds at 97 due December 31, 2x10.…

A: Introduction:- A bond is a form of instrument in which the issuer (the debtor) owes the holder (the…

Q: On January 1 of the current year, a company paid $200,000 cash to purchase 10%, 10-year bonds, with…

A: Journal entry shows the recording of transactions during an accounting year and every transaction…

Q: On January 1, Year 1, Hart Company issued bonds with a face value of $103,000, a stated rate of…

A: The bonds are issued at premium means the bonds are issued at more value than face value of bonds.

Q: On January 1, a company issues bonds dated January 1 with a par value of $560,000. The bonds mature…

A: Interest expense is the amount of interest recompensed in a period. It is the amount paid as return…

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: On January 1 of the current year, the Barton Corporation issued 11% bonds with a face value of…

A: Semiannnual interest expense = Semiannual interest payment + Semiannual discount amortization

Q: The Levi Company issued $200,000 of 12% bonds on January 1 of the current year at face value. The…

A:

Q: On January 1, Year 1, a company issues $460,000 of 5% bonds, due in 15 years, with interest payable…

A: When the bonds are issued at price which is equal to the face value, they are said to be issued at…

Q: On January 1, Elias Corporation issued 7% bonds with a face value of $79,000. The bonds are sold for…

A: Working Note: 1. Discount on Bonds Payables will be = Face Value - Issue Price = $79,000-$76,630 =…

Q: Franklin corporation issues $86,000, 10%, 5 year bonds on January 1st for $89,900. Interest paid…

A: When interest is paid semi-annually, rate would become half.

Q: On January 1, a company issued and sold a $390,000, 4%, 10-year bond payable, and received proceeds…

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

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 6% bonds, with interest payable…

A: Given: Value of the bond = $ 2,000,000 Bond rate = 6 % Price of the bond = $ 2,125,000

Q: On the first day of its fiscal year, Chin Company issued $26,400,000 of five-year, 5% bonds to…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries are used to record various transactions which was performed by the business during…

Q: On January 1 of the current year, the Barton Corporation issued 6% bonds with a face value of…

A: A bond is a borrowing security issued by a company to raise funds from the market by making an…

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: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…