On the first day of its fiscal year, Chin Company issued $13,300,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 10%, resulting in Chin receiving cash of $12,786,458. a.  Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.) Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)

Q: On July 1, Year 1, Danzer Industries Inc. issued $48,800,000 of 10-year, 9% bonds at a market…

A: Bonds defined as the units of the corporate debt issued through the companies as well as securitized…

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 the first day of its fiscal year, Chin Company issued $27,500,000 of five-year, 8% bonds to…

A: Formula: Interest expense = Bond face value x Interest rate x Time period

Q: The Levi Company issued $100,000 of 12% bonds on January 1 of the current year at face value. The…

A: When bonds issued at par, there is no amortization of discount or premium required.

Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd Co. issued…

A: Solution: A bond is a financial debt instrument so it requires its issuing company to pay periodic…

Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…

A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300

Q: Issuance of the bond  First annual interest payment (record as separate entry from premium…

A: Working: Premium on Bonds Payable = Issue price of bonds - Face value of bonds = $2,125,000…

Q: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…

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

Q: On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to…

A: When the bonds are issued at coupon rate lower than market rate, they are usually issued at…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

A: Total amount of premium = Issue price - Face value = $1,050,000 - $1,000,000 = $50,000

Q: On April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bonds at a market interest…

A: a. Issuance of the bonds on April 1, Year 1: Date Accounts title and explanation Debit ($) Credit…

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

A:

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

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

Q: On January 1 of the current year, the Barton Corporation issued 10% bonds with a face value of…

A: A bond is a fixed income instrument that represents a loan made by an investor to a borrower. Bonds…

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 July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued…

A: Hey, since there are multiple sub-parts are posted, we will answer first three sub-parts. If you…

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: On the first day of its fiscal year, Ebert Company issued $20,000,000 of 5-year, 11% bonds to…

A: Under the Effective interest method, the Bond issue shall be valued at the present value of Bond…

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 the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…

A: Prepare journal entry for issuance of bonds payable.

Q: On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that…

A: Requirement a:Prepare the journal entry to record issuance of the bonds.

Q: On the first day of the fiscal year, a company issues a $888,000, 6%, 10-year bond that pays…

A:

Q: Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued…

A:

Q: Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $30,000,000 of…

A: The Net Present Value(NPV) is the difference between the present value of cash inflow and the…

Q: On the first day of its fiscal year, Chin Company issued $21,300,000 of five-year, 4% bonds to…

A: Interest expense= Issue value of the Bonds x market interest rate x no. of months / 12 Interest…

Q: the current fiscal year (for the issuer’s books):   (a) Issuance of the bonds. (b) First annual…

A: No. Particulars  Debit Credit a         Cash 2125000     Premium on bonds payable   125000…

Q: Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co.…

A:

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: On the first day of its fiscal year, Chin Company issued $15,300,000 of five-year, 8% bonds to…

A:

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $250,000, 10%, 10-year…

A: A bond is a liability on which a specific percentage of interest has to be paid over the maturity of…

Q: On the first day of the fiscal year, a company issues a $2,500,000, 4%, five-year bond that pays…

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

Q: On the first day of its fiscal year, Simon Company issued $2,500,000 of 5-year, 10% bonds to finance…

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

Q: On the first day of its fiscal year, Chin Company issued $12,700,000 of five-year, 11% bonds to…

A: Journal entries are defined as recording of the business transactions into the books of accounts of…

Q: On January 1, the Elias Corporation issued 10% bonds with a face value of $50,000.  The bonds are…

A: The total interest expense for an organization's payable bonds over the course of a reporting period…

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 the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays…

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

Q: Wayne Company issued bonds with a face value of $1,020,000, a 10% stated rate of interest, and a…

A: Working: Issue price of the bond=$1,020,000×1.06=$1,081,200 Face value = $1,020,000 Premium on bond…

Q: O’Halloran Inc. produces and sells outdoor equipment. On July 1, Year 1, O’Halloran Inc. issued…

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

Q: b. First interest payment on October 1, Year 1, and the amortization of bond premium for 2 months,…

A: Bonds:   Bonds are the financial debt instruments issued by the corporations to raise capital for…

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

A: The bonds are issued at price less than the face value of the bonds therefore the bonds are issued…

Q: On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $6,600,000…

A: Answer 1:   Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…

Q: On the first day of the fiscal year, Lisbon Co. issued $1,000,000 of 10-year, 7% bonds for…

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

Q: The Levi Company issued $200,000 of 12% bonds on January 1 of the current year at face value. The…

A:

Q: On July 1, Year 1, Danzer Industries Inc. issued $37,400,000 of 10-year, 11% bonds at a market…

A: Bonds defined as the units of the corporate debt issued through the companies as well as securitized…

Q: The Square Foot Grill, Inc. issued $230,000 of 10-year, 9 percent bonds on January 1, Year 2, at…

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 of the current year, Barton Corporation issued 10%, 5-year bonds with a face value of…

A: Discount on bonds payable = $200,000 - $191,000 Discount on bonds payable = $9,000   Number of…

Q: On the first day of the fiscal year, a company issues an $609,000, 10%, five-year bond that pays…

A: Record the first interest payment and amortization on Discount on payable

Q: On the first day of its fiscal year, Chin Company issued $26,400,000 of five-year, 5% bonds to…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

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

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