Redemption of bonds payable A $1,200,000 bond issue on which there is an unamortized premium of $63,956 deemed for $1,250,000. Journalize the redemption of the bonds.
Q: Ellis & Co. issued the following bonds at a discount: Date of issue and sale: April 1, 20-1…
A: Bonds: Bonds are the financial debt instruments issued by the corporations to raise capital for the…
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: Bonds Payable Sold at a Premium; Effective Interest Amortization On December 31, Coffey Company…
A: Financial statement means the records of the company which includes balance sheet, income statement…
Q: miley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley…
A: Journal entry records the transactions of the business into the books of accounts of the entity and…
Q: Bonds Issued at a Premium, Redeemed at a Loss Plantation Company issued the following bonds at a…
A: (1)
Q: Entries for Bonds Payable, including bond redemption The following transactions were completed by…
A: Bonds Bonds are referred to as the fixed-income instrument which represents a loan made by an…
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: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: Price Company issued a $700,000, 8%, 10-year bond payable at face value on January 1, 2018 Interest…
A: A bond refers to fixed income instrument that represents a loan made by an investor to a borrower…
Q: 3. On September 1, 20x1, an entity issues bonds with face amount of P8,000,000 for P9,105,022,…
A: Accrued interest on September 1, 20x1 = Face value of bonds x rate of interest x No. of months/12 =…
Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…
A: The issuance of bonds will increase the cash balance and the bonds payable balance of the company.…
Q: Al-Teeb Company issued OR 40,000, 3.5%, 15-year bond payable at 104 on January 1, 2018 Required:…
A: Issue value of Bonds = Face value of bonds x issue price = 40,000 x 104/100 = 41,600
Q: A $1,500,000 bond issue on which there is an unamortized discount of $70,100 is redeemed for…
A: The journal entries are prepared to keep the record of day to day transactions of the business.…
Q: Keaubie Co. issued $250,000, 6%, 10-year bonds payable at a price of 102, on Jan. 1a.Journalize the…
A: A bond is one of the sources of debt financing that is generally issued by companies in order to…
Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…
A:
Q: On April 1, 20x1, an entity issues bonds with face amount of P5,000,000 for P5,415,183, including…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
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: Entries for Bonds Payable, including bond redemption The following transactions were completed by…
A: Journalize the entries are as follows: Date Accounts title and explanation Debit $ Credit…
Q: a. On January 1, Cardano Berhad issued RM1,200,000, 6%, 5-year bonds at face value. Interest is…
A: Since you have posted two different question, we will do the first one for you. To get the other…
Q: An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000.…
A: Bonds Payable carrying value - $ 800,000 Add : Premium on Bonds Payable = $ 57,000 Less : Cash…
Q: Culver Corporation issued 2,800 9%, 7-year, $1,000 bonds dated January I, 2022, at face value.…
A: A journal entry is being used to record a commercial transaction in the accounting records of a…
Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Favreau Corporation…
A: Given that, Face value of bonds issued = $3900000 Issue rate = 12% and market-rate = 11% Cash…
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…
A: If the market rate of interest is less than the Coupon rate stated on the issue of Bonds, the bonds…
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Favreau Corporation…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…
A: Given, Issue price =$8,900,000 Cash received =$10,399,742 a. Journalize the entry to record the…
Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…
A: 1.
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…
A: Semiannual interest payment = Face value of bonds xrate of interest x no.of months / 12 =…
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: 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 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: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…
A: Amortization of Bond premium on straight line method =9,654,106-8,500,0008×2=1,154,10616=$72,132
Q: On August 1, 2022, Bridgeport Corp. issued $483,600, 7%, 10-year bonds at face value. Interest is…
A: given that, Bridgeport Corp. issued bonds worth $483600 Rate of interest = 7% life of bond = 10…
Q: Redemption of Bonds Payable An $800,000 bond issue on which there is an unamortized premium of…
A: A BOND is a type of securities issued by company. These are type of loan that are taken. A bond…
Q: Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $8,700,000, 7%,…
A: Bonds are issued at premium when the issue price of the bond is more than the face value of the…
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…
A: Journal entry: A journal entry is used to record day-to-day transactions of the business by…
Q: On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000.…
A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Favreau Corporation…
A: Premium on bonds payable = Cash amount - Bonds payable Semiannual amortization period for six years…
Q: Carla Vista Corporation issued 2,800, 6%, 5-year, $1,000 bonds dated January 1, 2022, at 100.…
A: Introduction: Bonds are issued with the assistance of governments and enterprises in order to raise…
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: Bob Co issued $1,000 of 5%, 5-year bonds, paid semiannually. The bonds were issued at 96. Prepare…
A: Issue price = $1,000*96% Issue price = $960 Number of periods = 5*2 = 10
Q: Redemption of Bonds Payable On December 31, a $1,950,000 bond issue on which there is an…
A: Redemption of bonds is a situation on which an entity redeem their bonds before its maturity date…
Q: Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation…
A: Bonds of $1,900,000 issued at a premium of $284,848 ($2,184,848 - $1,900,000). This premium will be…
Q: Issuing Bonds at a Premium On January 1, the first day of the fiscal year, a company issues an…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On January 1, 20x1, Company A issues bonds with face amount of P5,000,000 for P5,773,129. The bonds…
A: The journal entries are prepared to record day to day transactions of the business. The bonds are…
Redemption of bonds payable
A $1,200,000 bond issue on which there is an unamortized premium of $63,956 deemed for $1,250,000. Journalize the redemption of the bonds.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- BONDS ISSUED AT A DISCOUNT, REDEEMED AT A GAIN Ellis Co. issued the following bonds at a discount: REQUIRED Prepare journal entries for: (a) Issuance of the bonds. (b) Interest payment and discount amortization on the bonds on September 30, 20-1. (c) Year-end adjustment on the bonds for 20-1. (d) Reversing entry for the beginning of 20-2. (e) Redemption of 50,000 of the bonds on April 1, 20-4, at 96.BONDS ISSUED AT FACE VALUE Ramona Arroyo Co. issued the following bonds: REQUIRED Prepare journal entries for: (a) Issuance of the bonds. (b) Interest payment on the bonds on September 30, 20-1. (c) Year-end adjustment on the bonds for 20-1. (d) Reversing entry for the beginning of 20-2. (e) Interest payments on the bonds for 20-2 (March 31 and September 30). (f) Redemption at maturity.BONDS ISSUED AT FACE VALUE Ito Co. issued the following bonds REQUIRED Prepare journal entries for: (a) Issuance of the bonds. (b) Interest payment on the bonds on September 30, 20-1. (c) Year-end adjustment on the bonds for 20-1. (d) Reversing entry for the beginning of 20-2. (e) Interest payments on the bonds for 20-2 (March 31 and September 30). (f) Redemption at maturity.
- A Redemption of bonds payable A $1,500,000 bond issue on which there is an unaumortized discount of $70,100 is redeemed for $1,455,000. Journalize the redemption of the bonds.Redemption of bonds payableAn $800,000 bond issue on which there is an unamortized premium of $57,000 isredeemed for $785,000. Journalize the redemption of the bondsA Redemption of bonds payable A $1,500,000 bond issue on which there is an unamortized discount of$70,100 is redeemed for $1,455,000. Journalize the redemption of thebonds.
- Redemption of Bonds Payable A $1,900,000 bond issue on which there is an unamortized premium of $101,264 is redeemed for $1,979,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank.An $800,000 bond issue on which there is an unamortized premium of $57,000 is redeemed for $785,000. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles.Redemption of Bonds Payable On December 31, a $1,950,000 bond issue on which there is an unamortized discount of $70,500 is redeemed for $1,908,400. Required: Journalize the redemption of the bonds. Refer to the chart of accounts for the exact wording of the account titles. JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4
- Redemption of Bonds Payable A $950,000 bond issue on which there is an unamortized premium of $78,000 is redeemed for $802,000. Journalize the redemption of the bonds. If an amount box does not require an entry, leave it blank. accounts payable/bonds payable/cash/discounts on bonds payable/interest expense/premium on bonds payable/interest payable/discounts on bonds premium/gain on redemption of bonds/notes payableInstructions On December 31, a $1,000,000 bond issue on which there is an unamortized discount of $71,600 is redeemed for $948,500. Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Journal Journalize the redemption of the bonds. Refer to the Chart of Accounts for exact wording of account titles. 1 2 3 4 DATE DESCRIPTION JOURNAL I POST. REF. DEBIT CREDIT ACCOUNTING ASSETS LIABILITA $540,000 bond issue on which there is an unamortized discount of $45,000 is redeemed for $446,000. Required: Journalize the redemption of the bonds.