Barnett Industries, Inc., issued $600,000 of 8% bonds on January 1, 2019. The bonds pay interest semiannually on July 1 and January 1. The maturity date on these bonds is December 31, 2028. The firm uses the effective interest method of amortizing discounts and premiums. The bonds were sold to yield an effective interest rate of 9%. Barnett incurred legal and investment banking fees of $22,000 in issuing the bonds and amortizes these costs annually on a straight-line basis. Required: 1. Calculate the selling price of the bonds. 2. Prepare journal entries for the issuance of the bonds and debt issuance costs.

Q: Chowan Corporation issued $100,000 of 10% bonds dated January 1, 2019, for $96,832.72 on January 1,…

A: Journal entry: It is prepared to record the financial and non-financial transactions of the business…

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Q: On January 1, 2020, Marin Company purchased 6% bonds, having a maturity value of $550,000 for…

A: When the business model for the investment is to earn periodic income and capital gain, the…

Q: Chowan Corporation issued $198,000 of 8% bonds dated January 1, 2019, for $191,470.07 on January 1,…

A: Journal is a place where accounting transactions are listed in the book keeping system before ledger…

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A: Face value=$3,000,000 Coupon rate=10% Bond value at the time of sale, when interest rate=12%…

Q: On December 31, 2019, the liability section of Antonio Company's statement of financial position…

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A: The financial instruments can be recorded at fair or amortized value depending upon the accounting…

Q: On January 1, 2019, Garfield AG made an investment in €70,000 of the 9%, 5-year bonds of Chester…

A: Journal entries          Date      Accounts and…

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

Q: On March 31, 2018, Wins Corporation issued $2,000,000 of its 6%, 10-year bonds for $1,758,200…

A: S.No. Date Particulars Debit Credit 1 March 31, 2018 Cash  $  1,758,200.00       Discount on…

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A: A bond is a long-term financing debt. Interest (called a coupon) is paid periodically on the bond to…

Q: Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2019, for $111,283.65 on January 1,…

A:

Q: On July 1, 2020, Riverbed Company purchased $3,840,000 of Duggen Company’s 8% bonds, due on July 1,…

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

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A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

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A: Compute cash interest on the bonds up to April 1, 2019 as shown below:

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A: Cash Interest=Face Value×Interest rate=$560,000×3%=$16,800

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A: So here in this case, When bond is purchased for less than its face value of bond then bond is known…

Q: On July 31, 2018, Snowday Corporation issued $100,000, 5%, 20-year bonds for $88,443 when the market…

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

Q: On January 1, 2019, Hyde Corporation purchased bonds with a face value of $300,000 for $308,373.53.…

A: A journal entry is used to document any commercial transaction in the accounting records of a…

Q: On January 1,2019, DEF Company purchased 456B Corporation, 9% bonds with a face value of P 4,000,000…

A: Interest revenue for the year 2019 = Bond investment * Effective interest rate

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A: The debt investment can be defined as the money lent by the investor to firms expecting that the…

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A: Bonds Payable: Bonds Payable are the financial instruments that are issued with a promise or…

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A: Solution 1:             Period Changes during the period Ending bond liability balances Interest…

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A: The carrying value is calculated by deducting the amortized expense from the original cost of an…

Q: On July 1, 2019, Cyclic Inc issued $1,000,000 in principal of 6% bonds due in July 2024. The bond…

A: Bond :— It is one of the source of capital which gives fixed rate of interest and maturity value at…

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A: Given: ABC purchased bonds based on the purpose of both that includes the contractual cash flows…

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A: Number of bonds=Total valueIssue price=$450,000$100=4,500

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A: Bond is an investment security which provides a regular interest income at fixed rate to the bond…

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A: Given information is: Spurrier Corp. has 10-year bonds with a face value of $400,000 and a carrying…

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A: Required: 1. Prepare the journal entry to record interest on June 30, 2021 (the first interest…

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A: Bond conversion refers to the procedure of converting a bond into stock. It is entirely dependent on…

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A: A bondholder is someone who invests in or owns debt securities issued by corporations and…

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A: Interest: The money charged by the lender for using lender’s funds is referred to as interest. So,…

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A: Solution-   Date Interest Expense 5% Cash Interest   4% Discount Amortized Carrying Value of…

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

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A: Hi student Since there are multiple questions, we will answer only first question. If you want…

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

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A: Bond discount is the amount by which the selling price (or issue price or market price) of the bond…