Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a $750,000, 7%, 10-year bond that pays semiannual interest of $26,250 ($750,000 × 7% × ½ year), receiving cash of $750,000. (a)  Journalize the entry to record the issuance of the bonds.                 (b)  Journalize the entry to record the first interest payment on June 30.                 (c)  Journalize the entry to record the payment of the principal on the maturity date.

Q: On January 1, the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond…

A: Bonds: Bonds can be defined as the debt securities issued for the purpose of raising capital for the…

Q: Bond Discount, Entries for Bonds Payable Transactions On July 1, 20Y1, Livingston Corporation, a…

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

Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays…

A: When an event occurs in the business and it can be measured and expressed in terms of money, it…

Q: Entries for Bonds Payable, including bond redemption The following transactions were completed by…

A: In this question , the requirement asked is of accounting for bonds in books of Montague Inc. which…

Q: On April 1, Year 1, Greenway Corporation issues $20 million of 10%, 20-year bonds payable at par.…

A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…

Q: On January 1, the first day of the fiscal year, Jefferson Company issues a $1,000,000, 6%, five-year…

A:

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

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

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,800,000, 6%,…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

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

A: Interest expense is the expense incurred by the company on the borrowed amount.

Q: Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a…

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed by…

Q: 1.  Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on…

A: Bonds Price will the Present Value of the interest to be paid over the period of the bonds and also…

Q: On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays…

A: Solution: Discount on issue of bond = Face value - Issue price = $946,000 - $889,240 = $56,760…

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: Grayco issued $2,000,000 of 10 year, 6% bonds on March 1 of the current year at face value, with…

A: SOlution: Date Particulars Debit Credit 01-Mar Cash 2000000           To bonds payable…

Q: On 1 April, year 1, Happy Corporation issues $50 million of 10%, 30-year bonds payable at par.…

A: Journal entry to record first cash payment to bondholders:

Q: On January 1, the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond…

A: I am answering the first question out of multiple questions submitted by the student as per bartleby…

Q: On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market…

A: 1.

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…

Q: On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays…

A:

Q: ABC Co. issued $900,000 of 10-year, 7% bonds on May 1 of the current year at face value, with…

A:

Q: Bond Discount, Entries for Bonds Payable Transactions On July 1, 20Y1, Livingston Corporation, a…

A: Discount on bond payable = 46,000,000 - $42,309,236                                              =…

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: On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays…

A: Discount on Bonds Payable = Face value of the bonds - Issue value of the bonds = $1,450,000 -…

Q: On January 1, the first day of the fiscal year, a company issues a $1,800,000, 4% , five-year bond…

A: When the issue price of the bonds is more than the face value of the bonds the bonds are issued at…

Q: On January 1, the first day of the fiscal year, a company issues a $550,000, 8%, 10-year bond that…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley…

A: a. Prepare the journal entry to record the issuance of bonds on April 1.

Q: Issuing bonds at a discountOn the first day of the fiscal year, a company issues a $3,500,000, 6%…

A: Premium (discount) on bonds issue =   Issue value - face value of bonds = $3,350,000 - $3,500,000 =…

Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley…

A: Semiannual interest payment = Face value of bonds x rate of interest x 6/12 = $20,000,000 x 9% x…

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

A: The journal entries for the above transactions are recorded below:

Q: On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $2,500,000…

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

Q: On the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond that pays…

A: Since bond has been issued at discount, difference between face value and issue price will be…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,800,000, 11%,…

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

Q: a)  Journalize the entry to record the issuance of the bonds. If an amount box does not require an…

A: Bonds are the loan issued by Companies.

Q: On January 1, the first day of the fiscal year, a company issues a $700,000, 7%, 10-year bond that…

A: Formula: Interest amount = Bond amount x Time period x Interest rate

Q: Bond Discount, Entries for Bonds Payable Transactions On July 1, 20Y1, Livingston Corporation, a…

A: Given information Contract rate = 10% Market interest rate = 11% Bond is issued at discount Bond…

Q: On January 1, Marigold Corp. issued $270,000, 7%, 10-year bonds at face value. Interest is payable…

A: Accrual of interest on December 31 = Face value of bonds x rate of interest x period = $270000*7%*1…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…

A: Journal Entry is Record of a transaction in accounting system of Company

Q: Instructions On the first day of the fiscal year, a company issues a $2,750,000, 8%, five-year bond…

A: Bonds payable is one of the liability of the business, on which regular interest payments needs to…

Q: Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a…

A:

Q: Instructions On January 1, the first day of the fiscal year, a company issues a S300.000, 9%,…

A: Bonds payable = $ 300000 Semi - annual Interest  = 300000 * 9% *1/2 = $ 13500

Q: On January 1, the first day of the fiscal year, a company issues a $700,000, 5%, 10-year bond that…

A: Bonds are the highly secured securities for which the bondholders receive interest as per the…

Q: Entries for Bonds Payable, including bond redemption The following transactions were completed by…

A: Premium on bonds payable=Cash received-Bonds payable=$62,817,040-$55,000,000=$7,817,040

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 the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays…

A: Introduction: Accounting journal entries are employed in the books of accounts to record banking…

Q: The first day of the fiscal year, a company issues a $350,000, 6%, 10-year bond that pays semiannual…

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

Q: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…

A: Interest expense  for 6 months = 3000000×8%×1/2 = $120,000