Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the folowwing selected transactions.
Q: Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on…
A: Prepare the journal entry to record the issuance of bonds at face amount on March 1.
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: Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen…
A: SOLUTION- GIVEN THAT , BOND ISSUED = $33100000 INTEREST = 4% TENURE = 20 YEARS
Q: On the first day of its fiscal year, Chin Company issued $17,000,000 of five-year, 11% bonds to…
A: Discount on Bonds Payable = Face value of bonds - Issue price = $17,000,000 - $15,777,966 =…
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: Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen…
A: Given that Bonds issued = $18,00,000 Interest = 4% Tenure = 20 years
Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $300,000, 9%, 10-year…
A:
Q: Rushton Corp., a wholesaler of music equipment, issued $15,710,000 of 20-year, 8% callable bonds on…
A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: Hoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on…
A: Interest expense = Face value of bonds x rate of interest x no. of month/12 = $32,700,000 x 6% x…
Q: On the first day of the fiscal year, a company issues a $2,000,000, 3.5%, 5-year bond that pays…
A: Journal entry means the entry in prime book with chronological order. Journal entry should have…
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, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market…
A: 1.
Q: On the first day of its fiscal year, Chin Company issued $20,300,000 of five-year, 11% bonds to…
A: Bonds is one of the important liability of the business, on which regular interest payments needs…
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.
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A: Journal entries are prepared to record the financial and non financial transactions of the business.
Q: Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen…
A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen…
A: Journal entry is the process of recording business transactions in the books of accounts for the…
Q: Rushton Corp., a wholesaler of music equipment, issued $11,000,000 of 20-year, 9% callable bonds on…
A: Bonds are the method of raising finance for the business entity. It is considered as a cheaper…
Q: Campbell Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $87,000,000 of…
A: As posted multiple subparts we are answering only first three sub parts kindly repost the unanswered…
Q: 20Y1 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the…
A: Bonds are one way for companies to raise capital. A bond is a loan between an investor and 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: a. Journalize the entries to record the following: Issuance of the bonds. First semiannual…
A: Given: Price of the bond issued = $ 10,000,000 Rate of the bond = 7 % Interest rate = 8 % Cash…
Q: On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued…
A: 1.Prepare journal entry to record the amount of cash proceeds from the issuance of the bonds on July…
Q: On the first day of its fiscal year, Chin Company issued $15,300,000 of five-year, 8% bonds to…
A:
Q: Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on…
A: Bonds are a form of loan or debt that is being issued by the business organisation, on which regular…
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A:
Q: On July 1, Year 1, Khatri Industries Inc. issued $18,000,000 of 10-year, 5% bonds at a market…
A: Introduction Bonds issued with discount: Bonds are financial instrument which represents company’s…
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A: The journal entries are prepared to keep the record of day to day transactions of the business. The…
Q: Hoover Corp., a wholesaler of music equipment, issued $16,700,000 of 15-year, 11% callable bonds on…
A: Bonds are kind of loan on which interest is paid and redeemed after certain period of time.
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: [The following information applies to the questions displayed below.] On April 1, year 1, Cricket…
A: Bonds are a form of debt or loan issued by the company. Business has to make regular interest…
Q: On the first day of its fiscal year, Chin Company issued $17,000,000 of five-year, 11% bonds to…
A: Discount on Bonds Payable = Face value of bonds - Issue price = $17,000,000 - $15,777,966 =…
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: Rushton Corp., a wholesaler of music equipment, issued $11,000,000 of 20-year, 9% callable bonds on…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
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A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…
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A: Journalizing transactions is the practise of maintaining a record of all your company's transactions…
Q: Hoover Corp., a wholesaler of music equipment, issued $11,200,000 of 20-year, 9% callable bonds on…
A: Journal entries are prepared to record the financial and non-financial transactions of the business…
Q: On the first day of its fiscal year, Chin Company issued $27,500,000 of five-year, 8% bonds to…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Hoover Corp., a wholesaler of music equipment, issued $29,700,000 of 20-year, 6% callable bonds on…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: On the first day of its fiscal year, Jacinto Company issued $14,700,000 of five-year, 8% bonds to…
A: As posted multiple sub-parts we are answering only first three-day sub-parts kindly repost the…
Q: On January 1, the first day of the fiscal year, a company issues a $700,000, 5%, 10-year bond that…
A: Bonds are the highly secured securities for which the bondholders receive interest as per the…
Q: On January 1, the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7%…
A: A.
Q: Hoover Corp., a wholesaler of music equipment, issued $11,200,000 of 20-year, 9% callable bonds on…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year.
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- Hoover Corp., a wholesaler of music equipment, issued $32,700,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. 20Y2 Mar. Sept. 20Y4 Sept. 1 1 Issued the bonds for cash at their face amount. Paid the interest on the bonds. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)Hoover Corp., a wholesaler of music equipment, issued $20,000,000 of 20-year, 6% callable bonds on March 1, 20Y2, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the transactions for the 20Y2. Refer to the Chart of Accounts for exact wording of account titles. Chart of Accounts 20Y2 Mar. 1 Issued the bonds for cash at their face amount. Sept. 1 Paid the interest on the bonds. 20Y4 Sept. 1 Called the bond issue at 102, the rate provided in the bond indenture. (Omit entry for payment of interest.)Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $25,100,000 of five-year, 5% bonds at a market (effective) interest rate of 3%, receiving cash of $27,414,835. Interest is payable semiannually on April 1 and October 1. Required: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles. 1. Issuance of bonds on April 1, Year 1. 2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) b. Explain why the company was able to issue the bonds for $27,414,835 rather than for the face amount of $25,100,000. Chart of Accounts CHART OF ACCOUNTS Smiley Corporation General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes…
- Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $18,00,000 of 20-year, 4% callable bonds on May 1, Year 1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Year 1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Year 5 Nov. 1 Called the bond issue at 99, the rate provided in the bond indenture. (Omit entry for payment of interest.)Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley Corporation issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. Required: A. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles. 1. Issuance of bonds on April 1. 2. First interest payment on October 1 and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar.) B. Explain why the company was able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000.Rushton Corp., a wholesaler of music equipment, issued $29,700,000 of 20-year, 6% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Required: Journalize the entries to record the following selected transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 20Y1 Mar. 1. Issued the bonds for cash at their face amount. Sept. 1. Paid the interest on the bonds. 20Y5 Sept. 1. Called the bond issue at 105, the rate provided in the bond indenture. (Omit entry for payment of interest.)
- Mia Breen Corp. produces and sells wind-energy-driven engines. To finance its operations, Mia Breen issued $33,100,000 of 20-year, 4% callable bonds on May 1, Year 1, at their face amount, with interest payable on May 1 and November 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Year 1 May 1 Issued the bonds for cash at their face amount. Nov. 1 Paid the interest on the bonds. Year 5 Nov. 1 Called the bond issue at 98, the rate provided in the bond indenture. (Omit entry for payment of interest.) Chart of Accounts CHART OF ACCOUNTS Mia Breen Corp. General Ledger ASSETS 110 Cash 111 Petty Cash 121 Accounts Receivable 122 Allowance for Doubtful Accounts 126 Interest Receivable 127 Notes Receivable 131 Merchandise Inventory 141 Office Supplies 142 Store Supplies…Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $24,200,000 of five-year, 11% bonds at a market (effective) interest rate of 9%, receiving cash of $26,114,936. Interest is payable semiannually on April 1 and October 1. Required: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles. 1. Issuance of bonds on April 1, 20Y1. 2. First interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) b. Explain why the company was able to issue the bonds for $26, 114,936 rather than for the face amount of $24,200,000.Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $23,100,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $24,036,717. Interest is payable semiannually on April 1 and October 1. Required: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles. 1. Issuance of bonds on April 1, 20Y1. 2. First interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) B. Explain why the company was able to issue the bonds for $24,036,717 rather than for the face amount of $23,100,000. The bonds sell for more than their face amount because the market rate of interest is the contract rate of interest. Investors willing to pay more for bonds that pay a higher rate of interest (contract rate) than the rate they could earn on similar bonds…
- Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following: Required: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles. 1. Issuance of bonds on April 1, Year 1. 2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) b. Explain why the company was able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000.Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Year 1,Shunda Corporation issued $22,000,000 of five-year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $23,829,684. Interest is payable semiannually. Shunda Corporation’s fiscal year begins on January 1. The company uses the interest method.a. Journalize the entries to record the following:1. Sale of the bonds.2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar.3. Second semiannual interest payment, including amortization of premium. Round to the nearest dollar.b. Determine the bond interest expense for the first year.c. Explain why the company was able to issue the bonds for $23,829,684 rather than for the face amount of $22,000,000.Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $23,100,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $24,036,717. Interest is payable semiannually on April 1 and October 1. Required: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles. 1. Issuance of bonds on April 1, 20Y1. 2. First interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) b. Explain why the company was able to issue the bonds for $24,036,717 rather than for the face amount of $23,100,000. C. The bonds sell for more than their face amount because the market rate of interest is______________ the contract rate of interest. Investors ____________ willing to pay more for bonds that pay a higher rate of interest (contract rate) than the rate…