1. Cash paid to purchase long-term investments would be reported in the statement of cash flows in a.the cash flows from financing activities section. b.the cash flows from investing activities section. c.a separate schedule. d.the cash flows from operating activities section.   2. On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171. Journalize the first interest payment and the amortization of the related bond discount/premium using the straight-line method. Round answers to the nearest dollar.

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Q: On the first day of the fiscal year, a company issues a $2,000,000, 10%, 9-year bond that pays…

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Q: first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual…

A: Solution: When straight line Amortization is followed, the bond premium is based on total amount of…

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A: Bond Premium is amortized can be amortized through Straight line method and Effective interest rate…

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

Q: On the first day of the fiscal year, a company issues a $3,600,000, 9%, 4-year bond that pays…

A: The bonds are issued at discount when market rate is lower than the coupon rate of bonds payable.…

Q: The total interest expense over the 5-year life of the bonds is $100,000. How will the issuance of…

A: Cash Flow Statement has 3 sections :1. Cash flow from Operating activities2. Cash flow from…

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A: Cash outflow is an amount paid as interest less discount on issue of bonds every year. This amount…

Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…

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Q: Journalize the first interest payment and the amortization of the related bond discount. Round to…

A: A bond is said to be issued at a discount when the buyer pays an amount which is less than the par…

Q: On January 1, the first day of the fiscal year, a company issues a $2,400,000, 4%, five-year bond…

A: Annual Interest=2,400,000×4%=96,000

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A:

Q: On January 1, the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond…

A: I am answering the first question out of multiple questions submitted by the student as per bartleby…

Q: On the first day of the fiscal year, a company issues a $2,050,000, 9%, five-year bond that pays…

A: Bond: It is  long-term financial instrument issued by a company. Interest is paid to bond holders…

Q: On the first day of the fiscal year, a company issues a $8,900,000, 8%, 5-year bond that pays…

A: Premium on bonds payable:  It occurs when the bonds are issued at a high price than the face value.

Q: Liab. + Equity Rev. − Exp. = Net Inc. A. NA = NA

A: If company bonds mature, then the cash and bond liability decrease by 50000. In statement cash flow…

Q: On January 1, the first day of the fiscal year, a company issues an $1,350,000, 11%, five-year bond…

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Q: Doyle Company issued $390,000 of 10-year, 8 percent bonds on January 1, Year 2. The bonds were…

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Q: The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar…

A: Year1       July        1   Cash                                       $69,552,279…

Q: Classifying Bond Transactions- Direct Method Cambell Inc. issued $180,000, 6%, 10-year bonds on…

A: The cash payment of interest is a cash outflow in the operating activities. It will reduce the total…

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 $3,300,000, 12%, 6-year bond that pays…

A: The bonds payable are the financial instruments that are used to raise money from the market or…

Q: On June 1, $50,000 of bonds were purchased between interest dates. The brokerage commission was…

A: Total Cost of bonds includes cost, brokerage, commission, etc.

Q: On the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays…

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Q: ay of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays semiannual interest…

A: Solution: Semiannual interest amount = $800,000*6%*6/12 = $24,000 Discount amortization = ($800,000…

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Q: On the first day of the fiscal year, a company issues a $1,450,000, 5%, five-year bond that pays…

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Q: Prepare Natura Company's journal entries to record the following transactions involving its…

A: Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Doyle Company issued $390,000 of 10-year, 8 percent bonds on January 1, Year 2. The bonds were…

A: 1. Income Statement2. Balance Sheet3. Statement of Cash FlowThe first statement shows the income…

Q: On the first day of the fiscal year, a company issues a $8,400,000, 12%, 8-year bond that pays…

A: Premium on bonds Payable = Issue price - Face value of bonds = $8,839,411 - $8,400,000 = $439,411

Q: On January 1, the first day of its fiscal year, Jacinto Company issued $6,500,000 of six-year, 7%…

A:

Q: On January 1, Year 1, Kenneth Cole Inc. issued $2,000,000, 5%, 10-year bonds, with interest payable…

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A: Financial statements include the preparation of balance sheet that reflects the financial position…

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A: Given is: Majestic Corporation holds an investment in Cromwell bonds that pays interest eachOctober…

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A: Introduction Bonds issued with discount: Bonds are financial instrument which represents company’s…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 7%, 10-year bond that pays…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: On January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond…

A: Total premium on bonds issue = Issue value - Face value of bonds = $2,379,360 - $2,250,000 =…

Q: On January 1, the first day of the fiscal year, a company issues an $1,800,000, 4%, five-year bond…

A: Journal: Recording of a business transactions in a chronological order.