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: Issuer Co. issued bonds with a face value of $200,000 and a stated rate of 3% on January 1, Year 1.…

A: The bonds are the financial instruments for the business that are used to raise money from the…

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: Marvin Company issues $125,000 of bonds at face value on January 1. The bonds carry a 6% annual…

A: ANSWER:- (1) Option D  (7,500)=NA+(7,500) NA-7,500=(7,500) (7,500)OA is correct Explanation:- Amount…

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: 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: Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a…

A: A bond is a loan the investors give to the company or a business. The company repays the bond with…

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: 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: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $910 for $94,800. The bonds…

A: Bonds payable (at par) = 100 bonds * $910= $ 91000 Bond issued value= $ 94800 Premium on bond issue=…

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: 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: n 1/1/20, $300,000 of 10 year, 8% bonds were issued for $262,616. The issue price was based on an…

A: Straight line amortization method: Under the straight line method of amortization the bond discount…

Q: On the first day of the fiscal year, a company issues an $800,000, 6%, 5-year bond that pays…

A:

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: 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: 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: 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: The Designer Company issued 10-year bonds on January 1. The 6% bonds have a face value of $792,000…

A: Since the market rate of 7% is higher than the contract rate of interest of 6% the bonds are said to…

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: On Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,020 for $126,300. The…

A: JOURNAL ENTRIES Journal entries is the Process of Recording all Financial & Non Financial…

Q: A company issued 9.2%, 10-year bonds with a par value of $100,000. Interest is paid semiannually.…

A: In this question we require to calculate the amount of cash that should be paid as a interest to…

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…

Q: On January 1, Topeka Outfitters issued $175,000 of 6%, 3-year bonds when the market rate of interest…

A: 1) Value of bond is the present value of cash inflows discounted at the market rate of return Value…

Q: On Jan. 1, Year 1, Foxcroft Inc. issued 110 bonds with a face value of $1,000 for $113,900. The…

A: Jan 1. Cash Debit $113,900          Premium on bonds payable Credit $ 3900           Bonds Payable…

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.