Citywide Company issues bonds with a par value of $150,000. The bonds mature in five years and pay 10% annual interest in semiannual payments. The annual market rate for the bonds is 8%. 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the bonds’ issuance.

Q: On January 1, DDD issued ten-year bonds with a face amount of P1,000,000 and a stated interest rate…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: January 1, a company issues bonds dated January 1 with a par value of $390,000. The bonds mature in…

A: The bonds are issued at premium when market rate is lower than the contract rate of bonds.

Q: A ten-year bond has a face value of $10,000, a face interest rate of 11 percent, issued at $10,400.…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: On January 1, Applied Technologies Corporation (ATC) issued $600,000 in bonds that mature in 10…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: The Merchant Company issued 10-year bonds on January 1. The 8% bonds have a face value of $106,000…

A: Introduction: The cost of borrowing money is represented by an entity's interest expenditure. On the…

Q: On January 1, Year 1, Parker Company issued bonds with a face value of $70,000, a stated rate of…

A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…

Q: Brin Company issues bonds with a par value of $540,000. The bonds mature in 6 years and pay 9%…

A: Bonds are issued by the companies to acquire the funds required for meeting their business needs.…

Q: of 6% were sold at par value. The bonds were dated January 1, 20x6. Interest will be paid twice a…

A: The company issues bonds for the expansion of capital investment. The bonds were for a long period.…

Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 7% bonds, with interest payable…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On the first day of the current fiscal year, $1,500,000 of 10-year, 8% bonds, with interest payable…

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

Q: Medhurst Corporation issued $86,000 in bonds for $83,400. The bonds had a stated rate of 8% and pay…

A: Interest expense is a non-operating expense shown on the income statement. It represents interest…

Q: what will be the issuance price (approximate) of the bonds?

A: Interest payable on the bond for every 6 months = 9000 (300000*6%*6/12) Calculation of present value…

Q: S1: The risk of material misstatement of the financial statements is generally lesser when account…

A: It is required rather necessary for an auditor to obtain sufficient evidence and be independent…

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: Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and…

A: Present value: It refers to the current value of the sum of money or the series of cash flows that…

Q: Douglas Company issued five-year bonds on January 1. The 12% bonds have a face value of $35,000,000…

A: Interest expense will be calculated on $37702483 at 5% (i.e 10%/2), since the interest is compounded…

Q: On January 1, a co. issues bonds dated Jan 1 with a par value of 330,000. the bond mature in 5…

A: The bonds are issued at premium when market rate is lower than the contract rate of bonds.

Q: 1. Compute the price of the bonds as of their issue date. 2. Prepare the journal entry to record the…

A: A Bond is a debt security which is issued by the borrower to the lender. The lender is known as…

Q: ABC Corporation issued $1,000,000 of 5-year bonds with a stated interest rate of 6%. The bonds pay…

A: To calculate the total cash interest payment over the life of the bonds, we need to multiply the…

Q: NoleCo issues bonds on January 1, 20X1. The bonds mature ten years from this date and pay interest…

A: Amortization of bond discount adjustment would be result in increase in carrying value.

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

A: The journal entries are the first step of accounting process to record the transactions in the…

Q: On January 1, Year 1, the Diamond Association issued bonds with a face value of $210,000, a stated…

A: The amount of discount on the issue date is determined by deducting the selling value from the face…

Q: the current fiscal year (for the issuer’s books):   (a) Issuance of the bonds. (b) First annual…

A: No. Particulars  Debit Credit a         Cash 2125000     Premium on bonds payable   125000…

Q: The Designer Company issued 10-year bonds on January 1. The 7% bonds have a face value of $795,000…

A: Since it is given Designer uses effective interest method, the interest rate used for calculation of…

Q: On the first day of its fiscal year, Chin Company issued $13,200,000 of five-year, 6% bonds to…

A: Bond financing is an instrument for borrowing the funds. The borrower has to pay a fixed amount of…

Q: Brin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9%…

A: Semiannual interest = Face value of bonds x rate of interest x no. of months/12 = $590,000 x 9% x…

Q: Citywide Company issues bonds with a par value of $85,000. The bonds mature in seven years and pay…

A: Bonds are debt securities that offer investors fixed interest payments and principal repayment at…

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: Brin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9%…

A: The objective of the question is to calculate the issue price of the bonds and prepare the journal…

Q: Merchant Company issued 10-year bonds on January 1. The 5% bonds have a face value of $796,000 and…

A: Introduction: The cost of borrowing money is represented by an entity's interest expense. Interest…

Q: 500 of its 6%, $1,000 bonds on January 1 of Year 1. The bonds pay cash interest semiannually each…

A: The effective interest method, which is dependent on the object's effective interest rate (EIR), is…

Q: On January 1, Year 1, Hart Company issued bonds with a face value of $150,000, a stated rate of…

A: Amortisation Table Date Cash Payment Interest Expense Premium Amortization Carrying Value…

Q: Citywide Company issues bonds with a par value of $71,000. The bonds mature in nine years and pay…

A: The objective of the question is to calculate the issue price of the bonds and prepare the journal…

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: A company issued bonds with a par value of $250,000 and a maturity of 25 years. The Bonds pay…

A: Bond Valuation Bond valuation is a method for figuring out an individual bond's hypothetical market…

Q: Company E issues $300,000 worth of 7.5% bonds on January 1, 20x2, which will mature on December 31,…

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Brin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9%…

A: Bond valuation is a method that is used to determine the theoretical value that should be assigned…

Q: On January 1 of this year, Cunningham Corporation issued bonds with a face value of $200,000 and a…

A: DISCLAIMER: MARKET RATE IS NOT PROVIDED FOR  CALCULATING AMORTIZATION THOUGH I PROVIDED YOU WITH ITS…

Q: Milan Company issued bonds with a face value of $463,000 on January 1, Year 1. The bonds had a 6…

A: A bond is a debt investment where an investor loans money to an entity (typically a corporation or…

Q: he Merchant Company issued 10-year bonds on January 1. The 8% bonds have a face value of $109,000…

A: Solution: Interest expense should be recorded on July 1, first year = Issue price of bond * Market…

Q: NoleCo issues bonds on January 1, 20X1. The bonds mature ten years from this date and pay interest…

A: The bonds are issued at discount when market rate is higher than the stated rate of interest.

Q: The Merchant Company issued 10-year bonds on January 1. The 9% bonds have a face value of $93,000…

A: Introduction: The total amount a firm accumulates (accrues) in interest on its loans is known as…

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.