Maymay Company trial balance has the following selected accounts: Cash (includes P100,000 in bond sinking 500,000 fund for long term bond payable) Accounts receivable 200,000 Allowance of uncollectible accounts 50,000
Q: lendar year. Required: For all journal entries: If an amount box does not require an entry, leave…
A: Given Danzer Industries Inc. issued $56,000,000 of 20-year, 11% bonds at a market (effective)…
Q: The Hayden Corporation issues 1,000, 10-year, 8%, $2,000 bonds dated January 1 at 92. The journal…
A: Journal: Recording of a business transaction in a chronological order.
Q: On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays…
A: Solution: Discount on issue of bond = Face value - Issue price = $946,000 - $889,240 = $56,760…
Q: On the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays…
A: Interest expense = Cash interest paid - premium amortized semi annually
Q: The Kaplan Group sold $200,000 of 10-year bonds for $190,000. The face rate on the bonds was 8% and…
A: Interest paid on December 31 = Face value of bonds x rate of interest x no. of years = $200000 x 8%…
Q: Current Portion of Long-Term Debt Long-Term Investments 4,000 8,320 Marketable Securities 5,040…
A: Balance Sheet- An financial statement prepared at the end of each year, showing the financial…
Q: The company Milly works for has issued $110,000, 9%, three-year bonds at 102. Milly has been asked…
A: Formula: Total cash to be paid to bondholders = Face value of bond + Interest amount
Q: A company issues bonds with a face value of $5,000,000 and receives cash proceeds of $5,500,000 from…
A: Journal entries are prepared to record the financial and non financial transactions of the business…
Q: A company issues €1 million of bonds at face value. When the bonds are issued, the company will…
A: Introduction: A cash flow statement is a part of each company’s financial statements along with…
Q: Journalize the entry to record the issuance of the bonds.
A: Journal entry: It is a systematic record of a financial transaction of an organization recorded in…
Q: On the first day of the fiscal year, a company issues a $8,000,000, 9%, 10-year bond that pays…
A: Bonds are kinds of loan with regular interest payment and mature after certain period of times.
Q: On January 1, 2021, Bank Nizwa. issued RO 90,000, five-year, 12% bonds at (100% of face value). The…
A: At the time of issue of the bond, interest is not recorded. It is recorded when the amount becomes…
Q: On the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays…
A:
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 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: Make a journal entry to record the issuance of a bond with a face amount of $1,000,000 sold at 98.
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On April 1, 2011, Gina Company issued at 99 plus accrued interest, 2,000 of its 8% P1,000 face value…
A: Net cash received from bonds issue = Issue price of the bonds + Accrued interest on the bonds where,…
Q: The balance in the Bonds Payable account is a credit of $67,000. The balance in the Discount on…
A: Bond's carrying amount = Bonds payable - Discount on bond payables…
Q: Determine the net amount of cash received from the bond issuance , In each case On October 1. 2021.…
A: Bonds payable is a form of liability for the business. When bonds are issued along with accrued…
Q: If bond interest expense is $800,000, bond interest payable increased by $8,000 and bond discount…
A: Solution: Cash paid for bond interest = Bond interest expense - Increase in bond payable - Decrease…
Q: Federer Corporation issued $540,000 in bonds for $498,600. The bonds had a stated rate of 12% and…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond that pays…
A: Premium on issue of bonds = Cash received - Par value of bonds = $2,379,360 - $2,250,000 = $129,360
Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…
A: Under straight line amortisation, the bond discount is amortised equally in each year.
Q: On June 1, 2021, Conundrum Company purchased at 101 a $300,000 face value bond paying 6%, with…
A: The debt is the type of securities issued by the corporation to raise funds. The company pays a…
Q: On the first day of the fiscal year, a company issues a $4,200,000, 10%, five-year bond that pays…
A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.…
Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…
A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue of bond…
Q: A company received cash proceeds of $206,948 on a bond issue with a par value of $200,000. The…
A: The difference between the par value received on bonds issued and the premium on bonds payable…
Q: first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays semiannual…
A: Solution: When the face value of bond is higher than issue price of bonds then that represents that…
Q: On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays…
A: Discount on Bonds Payable = Face value of the bonds - Issue value of the bonds = $1,450,000 -…
Q: On December 31, 20X5. Cobb issued 2,000 of its 10%, $1,000 bonds at 99. The issuance price…
A: Bond issue costs are those costs incurred to facilitate the insurance of the bonds. All these costs…
Q: -year term to maturity. The bonds sold at 96. Interest is payable in cash on December 31 of each…
A: Bonds are issued at discount or premium to the face value of bond and that discount is amortized…
Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…
A: Solution a: Journal Entries - Smiley Corporation Date Particulars Debit Credit 1-Apr-20Y1…
Q: On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays…
A: Journal entry A journal entry is used to record a business transaction within the accounting…
Q: City Slicker Corporation pays $55,000 into a bond sinking fund each year for the future redemption…
A: Sinking Fund- It refers to the separate fund which company uses to create to reduce the outstanding…
Q: If $639,000 of 10% bonds are issued at 95, the amount of cash received from the sale is
A: A bond is an instrument of indebtedness to the holders which can be of municipal bonds and corporate…
Q: On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays…
A: Bond issuance: It is the way the company raises money. It is a type of loan between the investor and…
Q: On March 1, 2006, Cain Company issued at 103 plus accrued interest 4,000 of its 9% P1,000 face value…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are…
Q: Gunnison Insurance has reported the following balance sheet (in thousands): Assets…
A: Here, Assets…
Q: How do I jernalize it
A: Bond issuance is defined as the process in which firms raise their money by taking loans from the…
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: A $1,000,000 bond issue on which there is an unamortized premium of $71,600 is redeemed for…
A: Gain (loss) on redemption of the bonds = Face value of the bonds + unamortized premium - amount…
Q: rst day of the fiscal year, a company issues a $868,000, 9%, 10-year bond that pays semiannual…
A: Solution: Amortization for bond premium under straight line method is computed as dividend total…
Q: Five thousand bonds with a face value of $2000 each, are sold at 112. The entry to record the…
A: Bonds are a form of loan taken by the company, on which business has to pay regular interests. When…
Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…
A: Formula: Interest amount = Bond value x Time period x Interest rate
Q: Five thousand bonds with a face value of $2000 each, are sold at 89. The entry to record the…
A: Given: Face value of the bond = $ 2000 Price of the bond = $ 89
Q: On July 1, Year 1, Danzer Industries Inc. issued $24,000,000 of 20-year, 11% bonds at a market…
A: Bonds are those units of the corporate debt that is issued through the companies as well as…
Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Firs step in…
Q: On the first day of the fiscal year, a company issues a $621,000, 11%, 10-year bond that pays…
A: vv
Q: Assume that on January 1, First Union Co. purchases for cash a $400,000 of Medford City 5% bond at…
A: Total amount paid for investment = Investment + Accrued interest = $400,000 + $4,500 = $404,500
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- Create a balance sheet with the following information. Create a balance sheet for the following information. Bank Accoutns recievable Equipement Accounts payable Long-term debt Capital Retained earning Withdrawis msi in ^ 00 C 4 I P JOOOOL K V B m 2050 6100 900 150 2000 5000 10900 9000 0 ALTOR inIf the Net Realisable Value of Accounts Receivable = $35,000 and the balance of Accounts Receivable = %3D $42,300, then the balance of Allowance for Doubtful Debts must be: Select one: a. $12,900 O b. $13,100 O c. $7,300 O d. $12,400On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:Accounts Debit CreditCash $ 58,700Accounts Receivable 25,000Allowance for Uncollectible Accounts $ 2,200Inventory 36,300Notes Receivable (5%, due in 2 years) 12,000Land 155,000Accounts Payable 14,800Common Stock 220,000Retained Earnings 50,000Totals $ 287,000 $ 287,000During January 2021, the following transactions occur:January 1 Purchase equipment for $19,500. The company estimates a residual value of $1,500…
- Use the following information from financial statements of Hamilton Inc. Information from Balance Sheet Accounts: 12/31/2020 12/31/2021 Accounts receivable, gross Allowance for uncollectible accounts 5,000 70,000 90,000 Advances from customers 1,600 600 Information from Income Statement Accounts: Revenue (gross) carned during 2021 277,000 Bad debt expense in 2021 5,200 Other Information: Accounts receivable of 3,900 were written off during the year 2021.LOL Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5%loan with a bank. The entity was also assessed by the bank a finance charge of 6% on thetransaction and is paid up front. What amount should be recorded as a gain or loss on thetransfer of accounts receivables? A. PO B. P240,000 loss C. P100.000 gain D. P150,000 gainOn January 1, 2021, the general ledger of Big Blest Fireworks includes the following account balances: Accounts Debit Credit Cash Accounts Receivable Allowance for Uncollectible Accounts $ 23, 300 48, e00 $ 4, 580 Inventory Land Accounts Payable Notes Payable (6%, due in 3 ycars) 37, 200 72,188 28,980 37,000 63, 0ee 39, 0ee Common Stock Retained Earnings Totals $172,400 $172,480 The $37,000 beginning balance of inventory consists of 370 units, eoch costing $100. During Janusry 2021, Big Blast Fireworks had the following inventory transections: January 3 Purchase 1,62e units for $168, 800 on account ($1es cach). January 8 Purchase 1,7e8 units for $187,800 on account ($118 cach). January 12 Purchase 1,88e units for $207, 8ee on account ($115 cach). January 15 Return 135 of the units purchased on January 12 because of defects. January 19 Sell 5,200 units on account for $780,eee. The cost of the units sold is deternined using a FIFO perpetual inventory systen. January 22 Receive $753, eee…
- Adobo Company assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5% loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the transaction and is paid up front. What amount should be recorded as a gain or loss on the transfer of accounts receivables?1. On December 31, 2020, the accounts receivable control account of nana Company had a balance of P8,200,000. An analysis of the accounts receivable account showed the following:Subscription receivable due in 30 days 2,200,000Advance payments to creditors on purchase orders 400,000Advances to affiliated companies 1,000,000Interest receivable on bonds 400,000Trade accounts receivable – unassigned 2,000,000Customers’ accounts reporting credit balances arising from sales returns ( 600,000)Trade accounts receivable – assigned (Finance Company’s equity inassigned accounts is P500,000) 1,500,000Trade installments receivable due 1-18 months, including unearnedfinance charge of P50,000 850,000Trade accounts receivable from officers, due currently 150,000Trade accounts on which post-dated checks are held (no entries were made on receipt of checks) 200,000Accounts known to be worthless 100,000Total 8,200,000The correct balance of trade accounts receivable on December 31, 2020 is_________.VKS Co. assigned P 4,000,000 of accounts receivables as collateral for a P1,500,000 5% loan with a bank. The entity was also assessed by the bank a finance charge of 6% on the transaction and is paid up front. What amount should be recorded as a gain or loss on the transfer of accounts receivables?
- On January 1, 2021, the general ledger of Big Blast Fireworks includes the following account balances:Accounts Debit CreditCash $ 21,900Accounts Receivable 36,500Allowance for Uncollectible Accounts $ 3,100Inventory 30,000Land 61,600Accounts Payable 32,400Notes Payable (8%, due in 3 years) 30,000Common Stock 56,000Retained Earnings 28,500Totals $150,000 $150,000The $30,000 beginning balance of inventory consists of 300 units, each costing…Consider the following balance sheet for Northern Highland Credit Union (NHCU) before answering parts (i) through (v). Assets ($ million) $ Liabilities ($ million) $ Cash 30 Overnight interbank borrowing (7.00%) 160 T-notes 2 month (7.05%) 60 2-year CD (5%) 20 T-notes 3 months (7.25%) 80 7 year fixed rate Subordinated debt (8.55%) 150 T-notes two-year (7.50%) 60 Equity 25 T-notes 10-year (8.96%) 100 Corporate bonds (>5 years to maturity) 25 Total assets 355 Total liabilities and Equity 355 What is the repricing (funding) gap over the 0-to-6 months maturity bucket?On January 1, 2021, the general ledger of ACME Fireworks includes the following account balances:Accounts Debit CreditCash $ 25,100Accounts Receivable 46,200Allowance for Uncollectible Accounts $ 4,200Inventory 20,000Land 46,000Equipment 15,000Accumulated Depreciation 1,500Accounts Payable 28,500Notes Payable (6%, due April 1, 2022) 50,000Common Stock 35,000Retained Earnings…
