Entries for issuing and calling bonds; lossAdele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 20Y1, at their face amount, withinterest payable on March 1 and September 1. The fiscal year of thecompany is the calendar year. Journalize the entries to record thefollowing selected transactions: 20Y1   Mar. 1. Issued the bonds for cash at their face amount. Sept. 1. Paid the interest on the bonds. 20Y5   Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)

Q: Entries for issuing and calling bonds; lossAdele Corp., a wholesaler of music equipment, issued…

A: Solution:- Preparation of journal entries as follows under:-

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $650,000, 10%, 10-year…

A: Bond :— It is a type of Debt source of financing that gives fixed periodical interest and principal…

Q: On January 1, 20x1, Faith Co. issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on…

A: Calculation of Interest: Particulars Amount (P) Cash Proceeds (Issue Price) 2,206,168 Less:…

Q: a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable…

A: Journal entries : To keep track of financial transactions, journal entries are utilised. You enter…

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

A: Bonds   Bond is a long-term financial instrument issued by a company for which the company pays…

Q: On January 1, Remington Corp issued $500,000 of 15-year, 10% bonds payable, yielding an effective…

A:

Q: Prepare a bond amortization table for the bond. Journalize the following entries Issue of the…

A: Solution:- Given, Augusta corporation issued 5,000,000 of 4% 10 year bonds paying interest semi…

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: 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 January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $300,000, 9%, 10-year…

A:

Q: On March 1, Sullivan Inc. issued $700,000 of 10-year, 11% bonds at an effective interest rate of…

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

Q: Entries for bonds payable, including bond redemptionThe following transactions were completed by…

A: SOLUTION- BONDS-  BONDS ARE LONG TERM PROMISSORY NOTES THAT ARE ARE REPRESENTED BY THE COMPANY WHILE…

Q: On the first day of the fiscal year, a company issues a $2,000,000, 3.5%, 5-year bond that pays…

A: Journal entry means the entry in prime book with chronological order. Journal entry should have…

Q: On July 1, Year 1, Khatri Industries Inc. issued $43,200,000 of 10-year, 4% bonds at a market…

A: Journal entries means the entries to be recorded in the accounting books of the business for all the…

Q: 2. On January 1, 20x1, Faith Co. issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on…

A: As per the IFRS 9, the transaction cost incurred on the issue of bond will be reduced from proceeds…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries are used to record accounting transactions of the business and involves an debit in…

Q: Fireside, Inc. had the following bond issue: Date of issue/sale May 1, 20-A Principal amount:…

A: Journal entry is a record of financial transaction in the books of accounts maintained by an…

Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…

A: Number of half years=Number of years×2=5×2=10 half-years

Q: On September 30, Jose’s Jalapenos Inc., issued $1,000,000 of 10-year 9% bonds sated September 30,…

A: Journal entries are prepared to record the financial and non financial transactions of the business.

Q: On January 1, 20x1, Faith Co. Issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on…

A: Working note: Premium amortization schedule:

Q: Emerald, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries is a process of recording various transactions in a chronological order. It is…

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

A:

Q: On July 1, 20Y1, Danzer Industries Inc. issued $50,000,000 of 10-year, 8% bonds at a market…

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

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

Q: On January 1, Year 1, Bell Corporation issued $203,000 of 10-year, 6 percent bonds at their face…

A: Introduction:- A journal entry is the act of recording or keeping track of any financial or…

Q: On the first day of the current fiscal year, $200,000 of 10-year, 7% bonds, with interest payable…

A: Bonds   Bond is a long-term financial instrument issued by a company for which the company pays…

Q: On the first day of the fiscal year, a company issues a $6,800,000, 8%, 10-year bond that pays…

A: Bonds are the instruments that are being issued for the purpose of raising finance. These are the…

Q: On September 1, Deutsch Limited issues 8%, 5-year bonds payable with a maturity value of OR 20,000.…

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

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: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording…

A: Introduction: Bonds: Bonds are debt instrument issued by the company or other legal bodies to…

Q: iaz Company issued $107,000 face value of bonds on January 1, Year 1. The bonds had a 7 percent…

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

Q: On July 1, 20Y1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market…

A: Interest expense = Issue price * Market rate * Time

Q: On the first day of its fiscal year, Ebert Company issued $23,000,000 of 5-year, 8% bonds to finance…

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

Q: Matt Perry, Inc. had outstanding $6,000,000 of 11% bonds (interest payable July 31 and January 31)…

A: Step 1: Journal entry for recording the issuance of bonds: The above entry is recorded for the…

Q: The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:…

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

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Bonds: Bonds are securities issued by a company to raise money from the public. It is as good as…

Q: The following transactions were completed by Montague Inc., whose fiscal year is the calendar year:…

A: Since, only the 2nd and 3rd requirement are mentioned they are answered. Bonds: Bonds are long-term…

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

A: Semiannual interest payment = Face value of bonds x rate of interest x 6 months/12 =…

Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

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

Q: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000…

A: Given information is: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a…

Q: 17,062 on Jan 1. Market rate is 6%. Prepare journal entries for the following. a. Sale on Jan 1 b.…

A: A journal entry is a record of a commercial transaction in a organization's accounting system. When…

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

A: Working note: (1.) Premium amortized = 1,914,936/5*6/12 = 191,494 (2.) Interest expense recorded =…

Q: Franklin corporation issues $86,000, 10%, 5 year bonds on January 1st for $89,900. Interest paid…

A: When interest is paid semi-annually, rate would become half.

Q: A company issued $1,000,000 of 30-year, 8% callable bonds on April 1, with interest payable on April…

A: Interest on Bonds Payable is payable semi-annually.   Interest on Bonds Payable = ($1,000,000*8%)…

Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…

A: Premium on bonds to be amortized = Cash received – Face value of bond…

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

A: Bonds payable are one of the source of finance and is shown as liability. If the interest rate is…

Q: transactions for the current year: a.  Issuance of the bonds. If an amount box does not require an…

A: Given Information:  Bond Payable Issued = $1300,000   Interest = 9%  Term= 20 years  Cash Received =…

Q: On the first day of its fiscal year, Ebert Company issued $25,000,000 of 5-year, 9% bonds to finance…

A: Solution a:       Journal Entries - Ebert Company Date Particulars Debit Credit Jan 1, Year 1…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: Journal entries are used to record various transactions which was performed by the business during…

Q: Larkspur, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due…

A: We shall answer the first question since the exact question wasn't specified. Please resubmit a new…