The following data relate to a $2,000,000, 8% bond issued for a selected semiannual interest period: Bond carrying amount at beginning of period                $2,125,000Interest paid during period                                                160,000 Interest expense allocable to the period                           148,750 (a) Were the bonds issued at a discount or at a premium? (b) What is the unamortized amount of the discount or premium account at the beginningof the period? (c) What account was debited to amortize the discount or premium?

Q: Required For each of the following situations, calculate the amount of bond discount or premium, if…

A: Formulas used; If Issue price is greater than face value then the resultant value will be premium.…

Q: A $294,000 bond was redeemed at 104 when the carrying value of the bond was $349,000. The entry to…

A: Par value of the bond = $294,000 Redemption value = $294,000 * 104% = $305.760 Carrying value of the…

Q: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $110,000…

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Q: On the first day of the current fiscal year, $1,500,000 of 8%, 10-year bonds, with interest payable…

A: Journal entries are the initial reporting of the transactions in the books of an entity.

Q: On January 1, 20XX, Cisco Corporation issued a $600,000, 9%, 5-year bond for $576,834. The bonds…

A: Bond's discount or premium is caused due to difference between market rate and couporate.

Q: On the first day of the fiscal year, a company issues an $8,000,000, 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: On January 1, 2021, Carrow Company issued 11% bonds in the face amount of P1,000,000 that mature on…

A: Bonds are a form of loan or debt that is being taken by the business, on which regular interest…

Q: On June 30, Jameson Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: A BOND IS A DEBT SECURITY UNDER WHICH THE BOND ISSUER OWES THE BOND HOLDER A DEBT INCLUDING INTEREST…

Q: Present entries to record the selected transactions described below: Required: a. Issued $2,750,000…

A: The journal entries are as follows. (a) Cash A/C dr.                $2667,500 Discount A/C dr.…

Q: On January 1, Hurley Corporation issues $1,000,000, 5-year, 12% bonds at 96 with interest payable on…

A: Bonds are a form of debt taken by the company. When bonds are issued at a discount or premium, then…

Q: On January I, Bramble Corp. issued 10 year, S6,000,000,9% bonds for $6,842,830. The market rate of…

A: Introduction: A loan that amortizes is one with monthly payments that go toward the principle.…

Q: On January 1, 2018, Parker Company issued bonds with a face value of $63,000, a stated rate of…

A: Amortization means decrease in the amount of debt over a period of time by paying some amount…

Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…

A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…

Q: Assume the bonds are issued for $6,940,000 on January 1 to yield an effective interest rate of 6…

A: Interest Payments  Interest payments on government debt, such as long-term bonds, long-term loans,…

Q: On December 31, a $1,000,000 bond issue on which there is an unamortized discount of $71,600 is…

A: Journal entry is the primary step to record the transaction in the books of accounts. The debit and…

Q: A $276,000 bond was redeemed at 98 when the carrying amount of the bond was $269,100. The entry to…

A: Solution:- Introduction:- The following data given as follows:- Bond = $276,000 redeemed at = 98…

Q: On January 1, 20X1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for…

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

Q: On the first day of the fiscal year, a company issues an $988,000, 9%, five-year bond that pays…

A: On amortization of bond discount using the straight-line method, the discount is amortized…

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: A $294,000 bond was redeemed at 98 when the carrying amount of the bond was $286,650. The entry to…

A: Proceeds from redemption  = $294,000 * 98/100 = $288,120

Q: On June​ 30, Danver Limited issues 7%​, ​20-year bonds payable with a face value of $120,000. The…

A: Amount received on issue of bonds = Face value of bonds x Selling price of bonds / 100 = $120,000 x…

Q: Investco issued $30,000 of 6.25% bonds on January 1 at a discount of $2,107. Interest expense…

A: The book value of the bond is calculated by subtracting the unamortized discount from the face value…

Q: On January 1, 2018, Parker Company issued bonds with a face value of $63,000, a stated rate of…

A: Since we are entitled to answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: n January 1, 20X1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for…

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

Q: On the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays…

A: Since it is a semiannual bond interest will be paid in 10 installments  ( 5 years × 2 )  The bond is…

Q: Paulson Company issues 7%, four-year bonds, on January1 of this year, with a par value of $91,000…

A: Solution 1: Date Particulars Debit Credit 01-Jan Cash A/c Dr  $84,447     Discount on Bond…

Q: On the first day of the fiscal year, a company issues an $994,000, 7%, 5-year bond that pays…

A: Total discount on bonds issue =  Face value of the bonds - Issue value of the bonds = 994000-934400…

Q: The notes to the Thorson Ltd. financial statements reported the following data on December 31, Year…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: On January 1, Year 1, Kenneth Cole Inc. issued $2,000,000, 5%, 10-year bonds, with interest payable…

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

Q: On June 30, Jameson Company issued $2,500,000 of 10-year, 8% bonds, dated June 30, for $2,580,000.…

A: Issue of Bond: The bond may be issued at par value, premium & discount with annually or…

Q: On 31 December 20X7, a company has the following bond on the statement of financial position: Bond…

A: Bonds are one of the types of finance where government and private institutions, corporations etc…

Q: On March 31, 20x7, KEEPU issued for P1,774,000, P2,000,000 face amount of its 10%, P1,000 bonds. The…

A: Interest method to amortize bond discount is a process in which the discount on issue of bond is…

Q: On the first interest date, using the effective-interest method, the debit entry to Interest Expense…

A: Given information is: On January 1, Vaughn Manufacturing issued $4300000, 7%, 5-year bonds with…

Q: On May 1, Holiday Company issued $200,000, 9%, 10-year bonds for $213,591 when the market rate was…

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

Q: A $300,000 bond was redeemed at 104 when the carrying amount of the bond was $316,000. The entry to…

A: Total amount paid for bond redemption  = $300,000×104% =$312,000

Q: On 1/1/21, Ehrlich Co. issued 4 year bonds with a face value of $700,000. The stated (bond) rate is…

A:

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 January 1 of the current year, the Queen Corporation issued 12% bonds with a face value of…

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

Q: On January 1, 2018, Wawatosa Inc. issued 10-year bonds with a face value of $200,000 and a stated…

A: When the interest rate on the bond is higher than the market interest rate, they are always issued…

Q: On May 1, Saxophone Corp. issued $300,000, 9%, 10-year bonds for $281,307 when the market rate was…

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

Q: he entry to record the redemption would include a

A: The correct option is: d.gain on bond redemption of $12,240. Gain on bond redemption is calculated…

Q: If the amount of a bond premium on an issued 11%, four-year, $100,000 bond is $12,928, the annual…

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

Q: On the first day of the fiscal year, a company issues a $3,200,000, 6%, 5-year bond that pays…

A: Bond :— Bond is a type of security which is issued to the party for the purpose of Enhance of…