A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the amount of cash received from the sale of the bonds greater or less than $26,000,000? (b) Identify the following amounts as they relate to the bond issue: (1) face amount, (2) market or effective rate of interest, (3) contract rate of interest, and (4) maturity amount.

Q: Hoover Corp., a wholesaler of music equipment, issued $3,690,000 of 20-year, 11% callable bonds on…

A: Semiannual interest payment = face value of bonds x interest rate x 6/12 = 3690000*11%*6/12 =…

Q: A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the amount…

A: the amount related to the bond issue : 1) Face amount is $26,000,000

Q: Webb Company had outstanding a 7%, 10-year bond payable with face amount of P5,000,000. The bond was…

A: The carrying amount of the bond payable was P5,250,000 Less : The face value of 7% bond…

Q: On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000.…

A: Bonds are the units of the corporate debt issued through the companies as well as tradeable assets,…

Q: On January 1, 20x1, an entity issues 14%, 3-year, P5,000,000 bonds at a price that reflects a yield…

A: Par value (FV) = P  5,000,000 Coupon rate = 14% Annual coupon amount (C) = 5,000,000*0.14 = P…

Q: 4. A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7%. (a) Was the…

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

Q: Hoover Corp., a wholesaler of music equipment, issued $17,850,000 of 25-year, 10% callable bonds on…

A: Answer -    The journal entry for bond issuance varies depends on the type of issuance; whether it…

Q: Bonds Payable has a balance of $1,137,000 and Discount on Bonds Payable has a balance of $13,644. If…

A: Bonds: Bonds is a long-term liability of a company where it has to repay the principal amount  along…

Q: Bonds Payable has a balance of $900,000 and Premium on Bonds Payable has a balance of $10,000.  If…

A: Redemption of Bonds: The process of repaying the sale amount of bonds to bondholders at the time of…

Q: A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7% (hint: market…

A: Bonds are the liability for the company on which a specific interest has to be paid overtime. It is…

Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…

A: Cash proceeds = $206,948 Par value = $200,000 Premium = 206,948-200,000 = $6,948

Q: n April 1, year 1, Cricket Corporation issues $56 million of 8%, 14-year bonds payable at par.…

A: An interest expense refers to the cost of borrowing money. Interest expense is a non-operating item…

Q: McNeil Corporation issued $660,000 of 7​% ​10-year bonds. The bonds are dated and sold on January​…

A: While using Effective Interest Method we recognize interest expenses on the basis of effective…

Q: Please I want answer for these questions of multiple choice. Big thanks

A: Hey, Since there are multiple questions posted, we will answer first question. If you want any…

Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay…

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

Q: Bonds Payable has a balance of $908,000 and Premium on Bonds Payable has a balance of $9,988. If the…

A: Introduction: Bonds payable are recorded when a company issues bonds to make income. Because it is a…

Q: Aye Company is authorized to issue P5,000,000 of 6%, 10-year bonds dated July 1, 2021 with interest…

A: Formula: Interest amount = Bond authorized value x Interest rate x Time period.

Q: On January 1, 20x1, an entity issues 9%, 3-year, P3,000,000 bonds at a price that reflects a yield…

A: Where a Bond is issued at a price lower than it's face value it is said to be issued at a discount.

Q: Brazzle Inc. issued $ 200,000 face value bonds at a discount and received $ 185,000 . At the end of…

A: Net liability at year end = face value of bonds - Discount on Bonds Payable

Q: 3. Terry Company is authorized to issue P5,000,000 of 6%, 10- year bonds dated July 1, 2011 with…

A: Face value of bond: P5,000,000 Cash received by the company: P5,150,000 Interest rate: 6% Discount…

Q: Bonds Payable has a balance of $1,000,000, and Discount on Bonds Payable has a balance of $15,500.…

A: Bonds payable are kind of long term debt generally issued by governments and corporations. The…

Q: On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P4,800,000. The bonds…

A: As per PFRS 9 Financial instruments ,Issue of bond will be considered as Financial instruments as it…

Q: Bonds Payable has a balance of $962,000 and Premium on Bonds Payable has a balance of $10,582. If…

A: A bond is basically an interest-bearing loan instrument that is issued by the companies in order to…

Q: A company paid $33,800 to acquire 11% bonds with a $36,000 maturity value. The company intends to…

A: The cash proceeds from the bond that the company receives at maturity is the face value or maturity…

Q: A corporation issues $40,000,000 of 6% bonds to yield an effective interest rate of 8%. Was the…

A: SOLUTION- BONDS ARE DEBT INSTRUMENT ISSUED BY A BORROWER COMPANY TO IT LENDERS.BONDS ARE ISSUED AT A…

Q: During 20x9, Oceanic Co. Issued 3,000 of its 9%, ₱1,000 face value bonds at 1011/2. In connection…

A: During 20x9, Oceanic Co. issued 9% 3000 bonds. Issued price = P101.5 Issued price of bonds = P101.5…

Q: A company issued 432 $1,000 bonds at 116, and each bond was issued with one detachabl

A: Solution  Market value of bond= 432 * $1000 * 1.04= 449280   Issue price = 432 * $1000 * 1.16=…

Q: 2. On Janury 1, 20x1, an entity issues bonds with face amount of P8,000,000 for P8,600,000. The…

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

Q: A Co. is authorized to issue P5,000,000 of 6%, 10 year bonds dated July 1, 2021 with interest…

A: The premium on bonds payable refers to the amount received from the bondholders over the face value…

Q: A corporation issues for cash $1,000,000 of 10%, 20-year bonds, interest payable annually, at a time…

A: Bond discount or premium: if a bond issued value is higher than its original value is called Premium…

Q: On April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including…

A: A per PFRS 9 Financial instruments an issue of bond is a financial liability which can be accounted…

Q: On January 1, 20x1, an entity issues bonds with a face amount of P8,000,000 for P8,600,000. The…

A: Introduction:- Bonds are a sort of investment that is utilized in mutual funds and private…

Q: On January 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P4,800,000. The bonds…

A: Journal Entry: Any transactions either economic or non-economic are recorded through  journal entry…

Q: A company received cash proceeds of $426,525 on a bond issue with a par value of $400,000. The…

A: Bond is a financial instrument issued by a company in order to raise funds. In exchange for funds,…

Q: Anne Corp. issued $600,000, 5% bonds.Required:Prepare the necessary journal entries to record the…

A: Sno Account Titles and Explanation  Debit   Credit  A Cash  $ 600,000     5% Bonds Payable    $…

Q: A corporation issues for cash $1,000,000 of 10%, 20 year bonds, interest payable annually, at a time…

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

Q: The company has outstanding bonds payable with a total face value of $100,000. On July 1, the…

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

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: Bonds Payable has a balance of $1,091,000 and Discount on Bonds Payable has a balance of $13,092. If…

A: Step 1: Calculate the carrying amount of bonds payable on the redemption rate.

Q: compute the cash proceeds from bond issues under the following terms. for each case, indicate…

A: a. Compute cash proceeds from Pear Inc. issued bonds as shown below:

Q: Bonds Payable has a balance of $5,000,000, and Discount on Bonds Payable has a balance of $150,000.…

A: Calculate gain or loss on the redemption of the bonds payable.

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…

Q: When the market rate of interest was 11%, Christopher Corporation issued $100,000 of five-year, 12%…

A: The Selling price of the bond will be Present Value of the Interest Amount to be Received for…

Q: A corporation issues $40,000,000 of 6% bonds to yield an effective interest rate of 8%. a. Was the…

A: Bonds: Bonds are the debt instruments issued by the borrower company to its lenders. Bonds are…

Q: On January 1, $954,000, 5-year, 10% bonds, were issued for $925,380. Interest is paid semiannually…

A: Discount = Face value - Issued amount = $954000-925380 = $28620 Term of bonds = 5 years i.e 10…

Q: A corporation issues for cash $1,000,000 of 8%, 20-year bonds, interest payable annually, at a time…

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

Q: Eli Inc. issued $110,000 of 9% annual, 5-year bonds for $112,900. What is the total amount of…

A: Interest formulae  =face value of bond* interest