Which of the following can be said about the journal entry?
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Q: Please I want answer for these questions of Multiple Choice Thanks
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Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…
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Q: Eddie industries issue 861000 of bonds at 102. The amount of cash received from the sale is
A: Bonds are kind of instrument which is issued by company to raise or borrow funds from the market. It…
Q: A $485,000 bond issue on which there is an unamortized discount of $35,000 is redeemed for $470,000.…
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Q: THIS QUESTION WILL ALSO BE CHECKED MANUALLY (to make adjustments for typos). QUESTION 9 On the first…
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A: Gain (loss) on redemption of the bonds = Face value of the bonds + unamortized premium - amount…
Q: Prepare journal entries to record the following transactions involving short-term debt investments.
A: Required journal entries are:
Q: The following information pertains to BARU NUTS Company's issuance of bonds on July 1, 2021: WHAT…
A: Interest=Face amount×Stated interest rate2=1,000,000×8%2=40,000
Q: Mission Furniture issued $500,000 in bonds payable at par. The journal entry to record asemiannual…
A: Correct answer is d Interest payment on bond is recorded as follows. Interest expenses Dr. Cash…
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A: If the Bonds are issued at less then face value the the bonds are discount bonds.
Q: On the first day of the fiscal year, a company issues a $621,000, 11%, 10-year bond that pays…
A: vv
Q: If the bonds payable account has a balance of $900,000 and the discount on bonds payable account has…
A: The correct option is A.$828,000 Please see the next step for the solution
Q: Five thousand bonds with a face value of $1000 each, are sold at 105. The entry to record the…
A: 5000 bonds having face value of $1000 issued at 105 which means that bonds are issued at 105% of…
27 -
…/…/201. . (Debit) .(Credit)
780 Financial Expenses xxx
304 Bond Principal Debt Installments and Interests xxxx
360 Taxes and Funds Payable Account xxx
Which of the following can be said about the
A) It is the journal entry for the interest payment of the bonds.
B) It is a journal entry for the sale of bonds through the bank.
C) It is the journal entry for the issuance of the bond.
D) It is the journal entry for the interest accrual of the bonds.
E) It is a journal entry for long-term installments to become short-term.
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Solved in 2 steps
- On the first day of the fiscal year, a company issues a $950,000, 10%, five-year bond that pays semiannual interest of $47,500 ($950,000 × 10% × 1/2), receiving cash of $884,174. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSGeneral Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312…On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays semiannual interest of $39,200 ($980,000 × 8% × 1/2), receiving cash of $884,177. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 310…If $457,000 of 8% bonds are issued at 94, what is the amount of cash received from the sale? Select the correct answer. A. $420,440 B. $457,000 C. $429,580 D. $493,560
- A $1,600,000 bond issue on which there is an unamortized premium of $70,500 is redeemed for $1,645,900. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331…On the first day of the fiscal year, a company issues a $2,050,000, 9%, five-year bond that pays semiannual interest of $92,250 ($2,050,000 × 9% × ½), receiving cash of $2,006,440. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321…Mission Furniture issued $500,000 in bonds payable at par. The journal entry to record asemiannual interest payment on these bonds woulda. debit Cash and credit Interest Payable.b. debit Cash and credit Interest Expense.c. debit Interest Expense and credit BondsPayable.d. debit Interest Expense and credit Cash.
- A $485,000 bond issue on which there is an unamortized discount of $35,000 is redeemed for $470,000. Required: Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSGeneral Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales 610 Interest Revenue 611 Gain on Redemption of Bonds EXPENSES…If $467,000 of 7% bonds are issued at 98, the amount of cash received from the sale is a. $434,310 b. $457,660 c. $467,000 d. $499,690If $949,000 of 8% bonds are issued at 102 3/4, the amount of cash received from the sale is a.$1,024,920 b.$711,750 c.$949,000 d.$975,098
- If bonds with a face value of $208,000 are issued at 94, the amount of cash proceeds is A. $207,906 B. $208,000 C. $195,520 D. $183,040On the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays semiannual interest of $13,300 ($380,000 × 7% × 1/2), receiving cash of $357,200. Required: Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable…On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual interest of $175,000 ($5,000,000 × 7% × ½), receiving cash of $5,400,000. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSGeneral Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 191 Land 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 232 Interest Payable 241 Notes Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 315 Treasury Stock 321 Preferred Stock 322 Paid-In Capital in Excess of…
