, Journal entry worksheet: 1. Record the bond issue. (Jan. 01, 2021) 2. Record the first semiannual interest payment. (June 30, 2021) 3. Record the second semiannual interest payment. (Dec. 31, 2021)
Q: On January 1, 2018, Harvey Inc. issued $1,000,000 of 10 years, 6% bonds when the market 10%. The…
A: solution 1: Computation of bond price Table values are based on: n= 20 i= 5.00%…
Q: Super Splash issues $870,000, 7% bonds on January 1, 2021, that mature in 15 years. The market…
A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $870,000 x…
Q: Required: Determine the price of the bonds at January 1, 2021. (Enter your answer in whole dollars.)…
A: Issuance of bonds is one of the sources of financing, bonds are long-term debt for the company…
Q: Price Company issues $400,000, 20-year, 7% bonds at 101. Prepare the journal entry to record the…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Q: The following section is taken from Swifty Corporation’s balance sheet at December 31, 2021.…
A: Loss on redemption of bonds = Redemption value - Face value of bonds = (549500*104/100) - 549,500 =…
Q: Provide the journal entry that Bella will make to record the second bond interest payment on…
A: Meaning of Bonds Bonds are fixed debt instruments where a company issues bonds to the lenders. The…
Q: [The following information applies to the questions displayed below.] Hillside issues $4,000,000 of…
A: The bonds payable are issued at premium when market rate is lower than the coupon rate of bonds…
Q: On January 1, 2019 Sandhill Corporation issued $550,000, 7%, 5-year bonds at face value. Interest is…
A: Introduction: Journal entries serve as the primary building blocks for answering these and other…
Q: Requirements- Journalize the following transactions for Zillow. Include an explanation for each…
A: solution : given face value of bond = $140,000 coupon rate =10% interest payable…
Q: Stanford issues bonds dated January 1, 2019, wi 3%, and interest is paid semiannually on June 30…
A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…
Q: On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest…
A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…
Q: prepare colons journal entries for (a) the january insurance (b) the july 1 interest payment, and…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing…
Q: Sheridan Company issued $311,500 of 7%, 10-year bonds on January 1, 2020, at face value. Interest is…
A: Answer: Date Particulars Debit ($) Credit ($) January 1, 2021 Interest on Bonds A/c 21,805…
Q: On August 1, 2022, Blue Spruce Corp. issued $481,200, 7%, 10-year bonds at face value. Interest is…
A: Note payable: Note payable is an instrument through which borrower obtains money from lender and…
Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: Prepare the necessary journal entries in general journal form on the following. a. August 1, 2021,…
A: As per our protocol we provide solution to the first three sub-parts only but as you have asked…
Q: Valdez issues $450,000 of 13%, four-year bonds dated January 1, 2019, that pay interest semiannually…
A: Since there are multiple sub parts, the calculation will be given for first three sub parts. To get…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2021, that pay interest…
A: Bonds are the highly secured debt instruments for which the bondholders are paid in consideration to…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…
A: The question is based on the concept of the issue of securities. As per Bartleby guidelines we are…
Q: Required: Assuming the market interest rate on the issue date is 9%, the bonds will issue at…
A: Date Particulars Debit Credit Jan 1, 2021 Cash Account Dr. $370000…
Q: Pharoah Inc. issues $4,500,000, 5-year, 14% bonds at 104, with interest payable annually on January…
A: Computation of premium on bond payable: Premium on bond…
Q: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $410,000. Record…
A: Date Particulars Debit Credit Jan 1, 2021 Cash Account Dr. $410000…
Q: On January 1, 2019, Calvert Company issues 10%, $200,000 face value bonds for $207,259.79, a price…
A: journal entry is the act of keeping or making records of any transactions that is listed on the…
Q: Hillside issues $4,000,000 of 6%, 15-year bonds dated January 1, 2019, that pay interest…
A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…
Q: Brussels Enterprises issues bond as par dated January 1, 2019 that have a 2,900,000 par value…
A: The question is based on the concept of Journal Entry.
Q: The Kingbird Company issued $240,000 of 8% bonds on January 1, 2020. The bonds are due January 1,…
A: Bonds are the instrument by which company raises the money for a fixed interest payment as finance…
Q: On January 1, 2020, Concord Company purchased at face value, a $1060, 10% bond that pays interest on…
A: The interest earned during period but not received during period is recorded as interest receivable.…
Q: During 2018 and 2019, Kale Co. completed the following transactions relating to its bond issue. The…
A: Bond issue refers to the debt instrument issued by government organizations to raise money. The…
Q: On January 1, 2020, Crane Company purchased at face value, a $1110, 10% bond that pays interest on…
A: Bonds are instruments acknowledging the debt due from one person to another person to be paid on…
Q: 1. Determine the carrying amount of the bonds payable on December 31, 2021. The interest method of…
A: Interest Method of amortizing Bond Discount Under this method, Bond discount is amortized using the…
Q: On August 1, 2022, Martinez Corp. issued $489,600, 6%, 10-year bonds at face value. Interest is…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: Required a) Explain, including calculations, how the issue of the bond would be accounted for by…
A: On 1st January 2021 Corgi Ltd. issued bonds of £5 million at par value, the bonds are redeemable on…
Q: Crane Corporation issued 2,100, 9%, 5-year, $1,000 bonds dated January 1, 2020, at 100. Interest is…
A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…
Q: Golden Inc. issues $4,000,000, 5-year, 10% bonds at 102, with interest payable annually on January…
A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…
Q: On January 1, 2020, Sheridan Company issued $351,500, 6%, 5-year bonds at face value. Interest is…
A: Interest expense = Par value of bonds x Interest rate = $351,500 x 6% = $21,090
Q: The Colson Company issued $300,000 of 10% bonds on January 1, 2020. The bonds are due January 1,…
A: Step 1: a. Journal entry for the issuance of bonds: The above entry is recorded for the issuance of…
Q: On January 1, 2020, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest…
A: SOLUTION- JOURNAL ENTRIES…
Q: September 1, 2021, Imperial Corporation issued $1,000,000, 6%, 10-year bonds. Interest is payable…
A: "Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: Some of the questions are in the screenshots to make it easier! The following…
A: a. Record general entry for payment of bond interest as shown below:
Q: For ABC Co. answer the following independent requirements: a. Prepare the necessary journal entry on…
A: “Since you have posted a question with many sub-parts, we will solve three sub-parts for you. To get…
Q: The following amortization and interest schedule reflects the issuance of 10 year bonds by CMA…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: The following section is taken from Bramble Corp.’s balance sheet at December 31, 2021. Current…
A: Accrual of interest on December 31, 2022 = Face value of bonds x rate of interest x period =…
Q: Prepare the liabilities section of the balance sheet at December 31, 2018 and 2019. Prepare an…
A: Following entries will be posted in the books of Kale Co. related to bonds: 2018 Mar-01…
Q: An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid…
A: A bond amortization schedule refers to the presentation of complete payments over the maturity…
Q: Green Corporation issued a P4, 000,000 of 6% bonds on May 1, 2019. The bonds were dated January 1,…
A: Accrued interest refers to the interest amount that has been incurred but has not yet paid out.…
Q: On September 31, 2021, an entity issues bonds with face amount of P8,000,000 for P9,105, 022…
A: Cash proceeds P9,105,022 Accrued Interest (P8,000,000 *9 /12 * 9%) (P540,000) Face Value of…
Q: SC is paid each January 1 and July 1, a May 1, 2019, Jewels retired $100, December 31, 2018, was…
A: Solution: correct answer is a credit to cash for $ 104,000
Q: On October 31, 2021, Flowing Wind Company issued a $3,500,000, 10-year bond at 7% when the market…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
8,
1. Record the bond issue. (Jan. 01, 2021)
2. Record the first semiannual interest payment. (June 30, 2021)
3. Record the second semiannual interest payment. (Dec. 31, 2021)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?! Required information [The following information applies to the questions displayed below.] On January 1, 2024, Coney Island Entertainment issues $1,500,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assume that the market interest rate is 7% and the bonds issue at a discount. 2a. Calculate the issue price of a bond. 2b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1, FVA of $1, and PVA of $1)Required information (The following information applies to the questions displayed below.) Mi-T-M Corporation is a leading designer and manufacturer of high quality industrial equipment. Mi-T- M Corporation issues $540,000 of 7% bonds on January 1, 2021 to finance operations. The bonds are due in 10 years. Interest is paid semiannually on June 30 and December 31. 3. If the market interest rate is 6%, the bonds will issue at $580,169. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Reguired" in the first account field. Round your answers to the nearest dollar amount.) View transaction list Journal entry worksheet 2 3 > ces Record the bond issue. Note: Enter debits before credits Date General Journal Debit Credit January 01, 2021 Required information (The following information applies to the questions displayed below.)…
- 57 On January 1, 2024, Reyes Recreational Products issued $100,000, 11%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,895 to yield an annual return of 12%. Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate. 2. Prepare an amortization schedule by the straight-line method. 3. Prepare the journal entries to record interest expense on June 30, 2026, by each of the two approaches. 5. Assuming the market rate is still 12%, what price would a second investor pay the first investor on June 30, 2026, for $12,000 of the bonds? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 5 Prepare an amortization schedule that determines interest at the effective interest rate. Note: Enter your answers in whole dollars.…! Required information [The following information applies to the questions displayed below.] On January 1, 2024, Coney Island Entertainment issues $1,500,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assume that the market interest rate is 5% and the bonds issue at a premium. 3a. Calculate the issue price of a bond. 3b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1, FVA of $1, and PVA of $1)! Required information [The following information applies to the questions displayed below.] On January 1, 2024, Coney Island Entertainment issues $1,500,000 of 6% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. Assume that the market interest rate is 6% and the bonds issue at face amount. Required: 1a. Calculate the issue price of a bond. 1b. Complete the first three rows of an amortization schedule. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
- I need help on part B. Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $4,100,000 of 8-year, 11% bonds at a market (effective) interest rate of 8%, receiving cash of $4,816,617. Interest is payable semiannually on April 1 and October 1 B. Journalize the entry to record the first interest payment on October 1, 20Y1, and ammortization of bond premium for six months, using the straight-line method. Round to the nearest dollarSuperior Drive-Ins Ltd. borrowed money by issuing $4,500,000 of 6% bonds payable at 96.5 on July 1, 2018. The bonds are 10-year bonds and pay interest each January 1 and July 1. Requirements 1. How much cash did Superior receive when it issued the bonds payable? Journalize this transaction. 2. How much must Superior pay back at maturity? When is the maturity date? 3. How much cash interest will Superior pay each six months? 4. How much interest expense will Superior report each six months? Use the straight-line amortization method. Journalize the entries for the accrual of interest and amortization of discount on December 31, 2018, and the payment of interest on January 1, 2019.Quick Lane Auto Service issued $50,000, 10-year bonds on January 1, 2021. The stated rate of interest on the bonds is 8% payable annually on 12/31. Provide the requested information for the bonds immediately after issuance (January 1, 2021) under each of the three independent scenarios described below. Bonds Payable, net is the same terminology as carrying value discussed in class. Hint - if you are having trouble figuring out what 100, 104, and 98 mean, please consult the Gary Worksheet or the reading of this chapter on Canvas. a) b) c) Bonds Payable Unamortized Premium or Discount Bonds Payable, net Case 1 Bonds sold at 100 50,000 0 Case 2 Bonds sold at 104 50,000 Case 3 Bonds sold at 98 50,000
- Required information [The following information applies to the questions displayed below.] On January 1, 2021, White Water issues $600,000 of 7% bonds, due in 10 years, with interest payable annually on December 31 each year. Assuming the market interest rate on the issue date is 6%, the bonds will issue at $644,161. 2. Record the bond issue on January 1, 2021, and the first two interest payments on December 31, 2021, and December 31, 2022. (If no entry is required for a particula transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 1 2 3 Record the bond issue. Date January 01, 2021 Note: Enter debits before credits. General Journal Debit CreditBoyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $74,000,000 of three-year, 9% bonds at a market (effective) interest rate of 13%, with interest payable semiannually. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. $ fill in the blank 2 The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ fill in the blank 3 The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ fill in the blank 4 The amount of the bond interest expense for the first year. Round your answer to the nearest dollar. $ fill in the blank 5tELLiy, you must enter your ID number on the first sheet! On January 1, 2020 Omsk Corporation issued Bonds pay interest each July 1 and January 1. 150,000 of 5 % bonds, due in 17 years 12 % market rate of interest. Assume Requirements (Round to 0 decimals, Rounding errors do not matter): 1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 6. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021