MacBride Enterprises sold $200,000 of bonds on December 31, 2018. A portion of the amortization table appears below. Period Cash Payment (Credit) Interest Expense (Debit) Premium on Bonds Payable (Debit) Premium on Bonds Payable Balance (Credit) Bond Payable Carrying Value (Credit) At issue             $6,457   $206,457   06/30/19 $9,000   $8,465   $535   5,922   205,922   12/31/19 9,000   8,443   557   5,365   205,365   06/30/20 9,000   8,420   580   4,785   204,785   12/31/20 ?   ?   ?   ?   ?     Required: 1.  Indicate the stated annual interest rate on these bonds. % 2.  Calculate the effective annual interest rate on these bonds. (Note: Round to the nearest 0.1%.)

Q: Mitchell Inc. issued 240, 6%, $1,000 bonds on January 1, 2020. The bonds pay cash interest…

A: Bond Amortization: When bonds are issued at a price less than the face value, it is called bonds…

Q: On January 1, 2018, West Company purchased $600,000 of 6%, 5-year bonds, as an available-for-sale…

A: Following is the given information:

Q: Determining the present value of bonds payable and journalizing using the effective-interest…

A: Present value is the current value of a future amount that is to be received or paid out.Future…

Q: Oriole Company issued $760,000, 7%, 10-year bonds on January 1, 2022, for $815,933. This price…

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

Q: On January 1, 2022, Sheridan Company issued $2,060,000 face value, 8%, 10-year bonds at $1,927,796.…

A: Part a:

Q: Oriole Company sold $3,250,000, 9%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: journal entry        Date  Account titles & explanations  Debit  Credit…

Q: Volunteer Inc. issued bonds with a $600,000 face value, 8% interest rate, and a 4-year term on July…

A: Given Information: Bonds issued at face value       $600,000 Amount received…

Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Ivanhoe Company issued $530,000, 10-year, 8% bonds at 103. (a)     Prepare the journal entry to…

A: Issue value of the bonds = Face value of bonds x issue price/100 = $530,000 x 103/100 = $545,900

Q: Assume bonds payable are amortized using the straight-line amortization method unless stated…

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

Q: RHODHA Corporation was authorized to issue P3,000,000 of 12% face value bonds on April 1. 2011.…

A: Under straight-line amortization, the discount or premium on the issue of a bond is amortized…

Q: Crane Electric sold $6,240,000, 10%, 10-year bonds on January 1, 2022. The bonds were dated January…

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

Q: On July 1, 2022, Mercurial Company issued at 98 plus accrued interest 2,500 of its 11%, P1,000 face…

A: Solution : Given Face value of bond         =P1000 Issue price                        =98%…

Q: Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July…

A: Annual interest payment = Face value of bonds x rate of interest x 1 years = $500000 x 10% x 1 =…

Q: Logan Inc issued a $1,600,000, 6% 10 year bond at 88 on January 1, 2018. 1. Journalize the issuance…

A: Bonds are the debts of an issuing company that is repayable after a specific period of time, it may…

Q: Determining the present value of bonds payable and journalizing using the effective-interest…

A: Requirement 1:Calculate the amount that company receive upon the issuance of bonds.

Q: Required Scenario 1: 1.  Prepare the journal entry assuming the bonds are issued at 103.5 on May 1,…

A: Journal entry:- Journal entry is an entry that we make for our business transactions to know the…

Q: Cullumber Company sold $2,000,000, 4%, 10-year bonds on January 1, 2022. The bonds were dated…

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

Q: On January 1, 2016, Knorr Corporation issued $800,000 of 6%, 5-year bonds dated January 1, 2016. The…

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

Q: On January 1, 2016, Knorr Corporation issued $1,400,000 of 6%, 5-year bonds dated January 1, 2016.…

A: The initial measurement of the bonds shall be made at fair value. Fair value = Present value of cash…

Q: Analyzing and journalizing bond transactions On January 1, 2018, Electricians Credit Union (ECU)…

A: 1.

Q: Pharoah Company issued $560,000, 10-year, 6% bonds at 103. Prepare the journal entry to record the…

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

Q: Superior drive ins Ltd borrowed money by issuing $5500,000 of 6% bonds payable at 93.5 on July…

A: solution : given : face value of bond       =$5500,000 coupon rate                   =6% issue price…

Q: Sandhill Co. issued $480,00O, 9%, 15-year bonds on December 31, 2016, for $460,800. Interest is…

A: Journal entry to record the transactions are as under:

Q: Monica Corporation has $4,000,000 of 8 percent, 25-year bonds dated May 1, 2016, with interest…

A: 1) Journal entry Date account and explanation Debit credit May 1,2011 Cash (4000000*103.5/100)…

Q: Crane Company redeemed $178,000 face value, 17.5% bonds on June 30, 2022, at 98. The carrying value…

A: Premium on Bonds = Carrying value of the bonds - Face value of bonds = $190,000 - $178,000 = $12,000

Q: Oriole Company sold $3,250,000, 9%, 10-year bonds on January 1, 2022. The bonds were dated January…

A: Bonds are the instrument used in financial market as a debt instrument to borrow the fund from the…

Q: [The following information applies to the questions displayed below.] Alexi Co. issued $3.30…

A: Under horizontal model, effect of all the transactions is being recognised and analysis on all the…

Q: Diaz Company issued $139,000 face value of bonds on January 1, 2018. The bonds had a 7 percent…

A: Concept:

Q: Required information [The following information applies to the questions displayed below.] Alexi Co.…

A: Calculate the discount on bonds payable.

Q: Ivanhoe Co. sells $396,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and…

A: The price of bond and ammortization schedule is as follows : NOTE :  ONLY THE AMMORTIZATION SCHEDULE…

Q: Volunteer Inc. issued bonds with a $550,000 face value, 12% interest rate, and a 4-year term on July…

A: Interest expense= Bond face value* Interest rate = $ 550000*12% = $ 66000 Premium= $ 600000-$550000=…

Q: On May 1, 2018, ABC Corporation purchased $1,500,000 of 12% bonds, interest payable on January 1 and…

A: A bond is an instrument of raising funds. It has a fixed interest rate which is the paid by the…

Q: Determining the present value of bonds payable and journalizing using the effective-interest…

A: Compute the issue price of bond payable as shown below: Present value factor (6%÷2) at 3% for 12…

Q: Determining the present value of bonds payable and journalizing using the effective-interest…

A: The presnt value of bond is $ 311580the compnay received $ 311580 as cash.

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: Adcock Company issued $276,000, 8%, 20-year bonds on January 1, 2015, at 105. Interest is payable…

A: Bonds: When a corporation wants to raise money for financing its operations, Bonds issue is one of…

Q: Flint Corporation sold $3,050,000, 6%, 5-year bonds on January 1, 2022. The bonds were dated January…

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

Q: On March 1, 2021, RED Corporation issued at 103 plus accrued interest, 1,000 of its 9%,₱1,000 bonds.…

A: Solution: Accrued Interest for 2 months of Jan and Feb = 1000*1000*9%*2/12 = 15,000 Net cash…