Please explain how you got the answers with fill calculations. Thank you. E10-11 Recording Bond Issue and First Interest Payment with Premium (with Premium Account) LO10-3On January 1 of this year, Bochini Corporation sold a $10 million, 8.25 percent bond issue. The bonds were also dated January 1, had ayield of 8 percent, pay interest each December 31, and mature 10 years from the date of issue. Use Table 9C.1. Table 9C.2.Required:1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No Journalentry required" in the first account field. Round time value factor to 4 decimal places. Enter your answers in dollars not in millionsrounded to the nearest whole dollar.)View transaction listNo1View journal entry worksheetDateJanuary 01CashGeneral JournalDebitCreditⒸ 2. Prepare the journal entry to record the interest payment on December 31 of this year. Use effective-interest amortization and apremium account. (If no entry is required for a transaction/event, select "No journal entry required" In the first account fleld. Roundtime value factor to 4 decimal places. Enter your answers in dollars not in millions rounded to the nearest whole dollar.)View transaction listJournal entry worksheet< 1Record payment of annual interest and amortization of premium for 12 monthsNote: Enter debits before credits.DateDecember 31Record entryStatement of earnings:General JournalClear entryStatement of financial positionLong-term liabilities:BOCHINI CORPORATIONFinancial StatementsFor year ended December 313. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for this year.(Enter your answers in dollars not in millions rounded to the nearest whole dollar.)Debit$CreditView general journal0

Bond is a financial instrument which is used for the purpose of borrowing by the company. The one…

3. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for this year. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Statement of earnings: BOCHINI CORPORATION Financial Statements For year ended December 31 Statement of financial position Long-term liabilities: $ 0

3. Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for this year. Enter your answers in dollars not in millions rounded to the nearest whole dollar.) Statement of earnings: BOCHINI CORPORATION Financial Statements For year ended December 31 Statement of financial position Long-term liabilities: $ 0

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 96PSB

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On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000 are to be made annually. If the company received proceeds of $112,300, how would the bonds issuance be quoted? A. 1.123 B. 112.30 C. 0.890 D. 89.05
a. on january 1, 20x1, your firm issues a $10,000, 5-year, 10% bond with interest payable annually for $10,389. at the time of the issuance, market rates are 9%. journalize the issuance of the bond. debit credit date xix b. journalize the first annual interest payment on december 31, 20x1. debit credit date xix c. journalize the amortization of the premium/discount on december 31, 20x1. (if necessary, round to the nearest dollar.) date debit credit xix d. on january 1, 20x2, the bonds are called at 99. journalize this transaction. debit credit date xix
ke: Practice! Issuing Bonds at a Premium 1 pt Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $3,800,000, 8%, 9-year bond that pays semiannual interest of $152,000 ($3,800,000 x 8% x 2), receiving cash of $4,050,604. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Submit Answer Try Another Version
Problem #2 Ellis issues $250,000, 6.5%, 5-year bonds dated January 1, 2023. The bonds pay interest semi-annually on June 30 and December 31. The bonds were issued at $255,330. Record the journal entry to issue the bonds on January 1, 2023. a. Record the journal entry to pay the semi-annual interest payment and amortize the premium on June 30, 2023. Record the journal entry to pay the semi-annual interest payment and amortize the premium on Dec. 31, 2023. On September 1, 2026, Ellis calls the bonds at 99. Record the journal entry to call the bonds. What is the total interest expense for the bonds for: One full year? The entire 5-year life of the bond? (if the bond had been held until maturity) What is the carrying value of the bonds on: December 31, 2023? December 31, 2024?
Knowledge Check 01 On January 1, Duffy Enterprises issued $100,000 in bonds that mature in 10 years. The bonds were issued at face value. The bonds have a stated interest rate of 8% and pay interest once per year on December 31. Prepare the appropriate journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) - View transaction list View journal entry worksheet No 1 Transaction A Gain on Bond Retirement Interest Expense General Journal Debit 104,000 Credit 8,000 Ⓒ
Problem #2 Assume that the Valenzuela Corporation issues P1,000,000, 5-year, 12% bonds on March 2020. bonds, dated January 2, 2020, pay interest semiannually on January 2 and July 1. Requirement(s) Compute the amount of interest accrued on March 1 and its corresponding journal entry. Compute the amount of interest accrued on July 1 and its corresponding journal entry.
e: Practice! Issuing Bonds at a Discount 10 Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,700,000, 6%, 4-year bond that pays semiannual interest of $141,000 ($4,700,000 x 6% x 2), receiving cash of $4,538,462. Journalize the entry to record the issuance of the bonds. If an anmount box does not require an entry, leave it blank. Submit Answer Try Another Version Save and Exit Subrt Assigroentfor
a. On January 1, 20X1, your firm issues a $15,000, 4-year, 5% bond with interest payable annually for $13,056. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond. DATE Debit Credit XIX b. Journalize the first annual interest payment on December 31, 20X1. DATE Debit Credit XIX c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.) DATE Debit Credit XIX d. On January 1, 20X2, the bonds are called at 99. Journalize this transaction. DATE Debit Credit XIX
PROBLEM 3: EXERCISES 1. On January 1, 20x1, Sixty Hours Co. issued 1,000, P2,000, 10% bonds for P1,903,927. Principal is due on December 31, 20x3. while interest is due annually every year-end. The effective interest rate is 12%. Requirement: Provide the journal entries over the life of the bonds.
Brief Exercise 10-08 Metlock, Inc. issues $264,000, 10-year, 10% bonds at 99. Prepare the journal entry to record the sale of these bonds on March 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Enter an account title enter a debit amount enter a credit amount Enter an account title enter a debit amount enter a credit amount Enter an account title enter a debit amount enter a credit amount
On January 1, the first day of the fiscal year, a company issues a $250,000, 10%, 10-year bond that pays semiannual interest of $12,500 ($250,000 × 10% × ½ year), receiving cash of $250,000. (a) Journalize the entry to record the issuance of the bonds. fill in the blank 11be4501efcd079_2 fill in the blank 11be4501efcd079_4 (b) Journalize the entry to record the first interest payment on June 30. fill in the blank ae99bfffefd2073_2 fill in the blank ae99bfffefd2073_4 (c) Journalize the entry to record the payment of the principal on the maturity date. fill in the blank ec463dfa2fbd050_2 fill in the blank ec463dfa2fbd050_4
Please answer the following. Thank you so much <3 1. On January 1, 20x1, Sixty Hours Co. issued 1,000, P2,000, 10% bonds for P1,903,927. Principal is due on December 31, 20x3 while interest is due annually every year-end. The effective interest rate is 12%. Requirement: Provide the journal entries over the life of the bonds. 2. On January 1, 20x1, Faith Co. issued 1,000, P2,000, 12% bonds for P2,206,168. Principal is due on December 31, 20x3, while interest is due annually every year-end. Faith Co. incurred transaction costs of P106,694 on the issuance. The effective interest rates are 8% before adjustment for transaction costs and 10% after adjustment for transaction costs. Requirement: Provide the journal entries over the life of the bonds.