x Premium Amortization On the first day of the fiscal year, a company issues a $8,500,000, 9%, 10-year bond that pays semiannual interest of $382,500 ($8,500,000 × 9% × ½), receiving cash of $9,077,589. Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.   Interest Expense  fill in the blank  fill in the blank    Premium on Bonds Payable  fill in the blank  fill in the blank    Cash

Q: Premium Amortization On the first day of the fiscal year, a company issues a $4,400,000, 7%, 8-year…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: JUImpany issueu $200,000, 10-year mortgage bonds to X Company at Par value. The bonds bear a…

A: Solution: Issue price is the present value of semiannual interest on bond plus present value of bond…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $1,900,000, 8%, 4-year…

A: Since interest payments will be made on semiannual  5 years × 2 = 10 payments to be made 8% / 2 = 4%…

Q: Issuing Bónds at a Premium On the first day of the fiscal year, a company issues a $5,300,000, 8%,…

A: Bonds are issued by companies for collecting economic resources for working. They pay a certain…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $1,800,000, 11%, 8-year…

A: Bonds are the form of loan or debt that is being issued by the company and on which regular interest…

Q: On the first day of the fiscal year, a company issues a $8,600,000, 11%, 10-year bond that pays…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $4,500,000, 7%, 6-year…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,300,000, 10%,…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $4,600,000, 8%,…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: Question 4 On Dec 31, 2020, ABC Corp issued 4-year, 7% bonds with $3,000,000 as par value ABC Corp…

A: The bond premium is calculated as difference between issue price and face value of bonds payable.…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $1,500,000, 9%, 6-year…

A: The bonds are issued at discount when market rate is higher than the coupon bonds.

Q: Discount Amortization On the first day of the fiscal year, a company issues a $4,200,000, 10%,…

A:

Q: On the first day of the fiscal year, a company issues a $8,600,000, 10%, 6-year bond that pays…

A: Since, the bond have been issued at a price more than the face value, they have been issued at a…

Q: Problem 1: On January 1, 2022, Smith Corp. issued 5-year 12% bonds with face amount of P5,000,000 at…

A: Gain or loss on the early retirement of bond will be equal to the difference between the amount paid…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,900,000, 8%,…

A: Discount amortization on bond: Bond discount amortization is the process of writing off a bond's…

Q: Premium Amortization On January 1, the first day of the fiscal year, a company issues an…

A: Bonds: It is also known as fixed-income security, which is a debt instrument created for the purpose…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%,…

A:

Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…

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

Q: Premium Amortization On the first day of the fiscal year, a company issues a $5,300,000, 8%,…

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

Q: Question: On January 1 of Year 1, Congo Express Airways issued $3, 650, 000 of 8% bonds that pay…

A: Given that, Congo express airways issued $3650000 of 8% bonds  The interest payment is semi-annual -…

Q: Problem 4: DONNER Company issued 3-year, 12% bonds with face amount of P4,000,000. Interest is…

A: The bonds are issued at premium when market rate is higher than the face value of bonds.

Q: On the first day of the fiscal year, a company issues a $9,000,000, 11%, 7-year bond that pays…

A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $8,600,000, 10%,…

A:

Q: Premium Amortization On the first day of the fiscal year, a company issues a $6,600,000, 11%, 8-year…

A: Premium on bonds payable: It occurs when the bonds are issued at a higher price than the face value.…

Q: Premium Amortization On the first day of the fiscal year, a company issues a $9,000,000, 9%, 8-year…

A: Premium on bonds payable: It occurs when the bonds are issued at a high price than the face value.…

Q: Premium Amortization On the first day of the fiscal year, a company issues an $8,000,000, 11%,…

A: Solution: Journal entry for Issuance of Bonds Date Particulars Debit Credit   Cash A/c…

Q: "Ace Company issued P100,000 face of 6%, 10 year-bonds, with interest payable semi-annually. Ace…

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

Q: Discount Amortization On the first day of the fiscal year, a company issues a $1,700,000, 9%,…

A: The following transaction is journalized to record the first-year interest expense on bonds.

Q: On the first day of the fiscal year, a company issues a $5,100,000, 8%, 5-year bond that pays…

A: Total Premium on bonds = Issue price - Face value of bonds = $5,312,072 -  $5,100,000 = $212,072

Q: Bond premium, entries for bonds payable transactionsCampbell Inc. produces and sells outdoor…

A: 1 and 2) Journal Entry: S no Date Account Title and Explanation Debit Credit 1 July 1, 20Y1…

Q: Discount Amortization On the first day of the fiscal year, a company issues a $4,600,000, 7%, 6-year…

A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.

Q: Premium Amortization On the first day of the fiscal year, a company issues a $3,500,000, 6%, 9-year…

A: When bonds in the business are sold at a value more than its face value, then it means bonds are…

Q: Problem #4 On February 1, 2021 Leslie's Linguine Ltd. purchased 630, 10-yr, $1,000 bonds for an…

A: Computation of Purchase Price of Bond Period Interest @2.6% PV factor@2.5% Present Value 1 26…

Q: Bond Premium Amortization Fields Company sold an issue of $800,000, 10%, 10-year bonds for $852,032…

A: