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Mission Furniture issued $500,000 in bonds payable at par. The
semiannual interest payment on these bonds would
a. debit Cash and credit Interest Payable.
b. debit Cash and credit Interest Expense.
c. debit Interest Expense and credit Bonds
Payable.
d. debit Interest Expense and credit Cash.
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- 1. Journalize the entries to record the transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles. 2. Indicate the amount of the interest expense in (a) 20Y1 and (b) 20Y2. 3. Determine the carrying amount of the bonds as of December 31, 20Y2. (Refer to image, thank you!)On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance of the bonds will include O a credit to Bonds Payable for $104081500. a credit to Interest Expense for $3031500. O a credit to Premium on Bonds Payable for $3031500. O a debit to Cash for $101050000.The balance in the Bonds Payable account is a credit of $67,000. The balance in the Discount on Bonds Payable account is a debit of $3350. What is the bond's carrying amount?
- True or False: The balance in the Bonds Payable account is a credit of $16,500. The balance in the Premium on Bonds Payable account is a credit of $1,000. The balance sheet will report the bond balance as $15,500.Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober 31. Majestic’s balance sheet at December 31 should reporta. interest expense.b. interest revenue.c. interest payable.d. interest receivable.Bond premium, entries for bonds payable transactions Rodgers Gridiron Co. produces and sells football equipment. On July 1, 20Y1, Rodgers issued $75,900,000 of 10- year, 13% bonds at a market (effective) interest rate of 12%, receiving cash of $80,252,470. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries, if an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. 20Y1 July 1 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. 20Y1 Dec. 31 b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the straight-line method. Round to the nearest dollar. 20Y2 June 30 3.…
- Bonds Payable has a balance of $802,000 and Discount on Bonds Payable has a balance of $9,624. If the issuing company redeems the bonds at 98, what is the amount of gain or loss on redemption?A$1,000,000 bond is issued on 7/1. The transaction is recorded on 7/1 by the UCF Bicycle Vending Machine Company as: (Select ALL that apply) O Credit to Current Portion Long-term Debt O Credit to Accounts Receivable O Debit to Cash O Debit to Accounts Receivable O Debit to Current Portion Long-term Debt O Credit to Cash Q Debit to Bonds Payable O Credit to Bonds Payable ASUS f4 f10 f11 f6 E3 f9 团 f5 & 4 5 8. R T Y U 1O F G 因 6 图 %24A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The difference petween par value and issue price for this bond is recorded as a: O Credit to Interest Income O Credit to Premium on Bonds Payable O Credit to Discount on Bonds Payable O Debit to Premium on Bonds Payable O Debit to Discount on Bonds Payable
- Help me1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 20Y1. 2a. Journalize the entry to record the first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the straight-line method.Compute the price of $42,601,480 received for the bonds by using the present value tablesIn each separate situation, show how bonds payable is reported in the long-term liabilities section of the December 31 balance sheet. (Amounts to be deducted should be entered with a minus sign.) 1. Bonds payable with a par value of $10,000 and a premium on bonds payable of $240. 2. Bonds payable with a par value of $30,000 and a discount on bonds payable of $500. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Bonds payable with a par value of $10,000 and a premium on bonds payable of $240. Long-term liabilities Liabilities Section of Balance Sheet December 31