eBook Show Me How ator=&inprogress=false Upd. Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $1,300,000, 12%, 6-year bond that pays semiannual interest of $78,000 ($1,300,000 x 12% x 2), receiving cash of $1,196,745. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

eBook Show Me How ator=&inprogress=false Upd. Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $1,300,000, 12%, 6-year bond that pays semiannual interest of $78,000 ($1,300,000 x 12% x 2), receiving cash of $1,196,745. Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated interest rate of 12% payable semi-annually on July 1 and January 1. The bonds were sold to yield 10%. Assuming the bonds were sold at 107.732, what is the selling price of the bonds? Were they issued at a discount or a premium?
Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium
On October 1 a company sells a 3-year, $2,500,000 bond with an 8% stated interest rate. Interest is paid quarterly and the bond is sold at 89.35. On October 1 the company would collect ________. A. $200,000 B. $558,438 C. $2,233,750 D. $6,701,250
Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discount
Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premium
On April 1 a company sells a 5-year, $60,000 bond with a 7% stated interest rate. The market interest on that day was also 7%. If interest is paid quarterly, the company makes interest payments of ________. A. $1,050 B. $3,150 C. $4,200 D. $5,250
eBook Show Me How ly Work Journalize the bond issuance. If an amount box does not require an entry, leave it blank. gmentsessidLocator=&inprogress=false Issuing Bonds at a Discount of $1,196,745. On the first day of the fiscal year, a company issues a $1,300,000, 12%, 6-year bond that pays semiannual interest of $78,000 ($1,300,000 x 12% x 2), receiving cash 000 000 Save 0 Previous Upd. Next
eBook Show Me How eck My Work -&inprogress=false G Issuing Bonds at a Premium On the first day of the fiscal year, a company issues a $1,200,000, 6%, 8-year bond that pays semiannual interest of $36,000 ($1,200,000 x 6% x 2), receiving cash of $1,454,364. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Previous Upda Next
* CengageNOWv2 | Online teach x signment/takeASsignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress-false Issuing bonds at a premium Instructions Chart of Accounts Journal Instructions On the first day of the fiscal year, a company issues a $5,000,000, 7%, five-year bond that pays semiannual interest of $175,000 ($5,000,000 x 7% x %), receiving cash of $5,400,000. Journalize the bond issuance on January 1. Refer to the Chart of Accounts for exact wording of account titles.
< eBook Show Me How amprogress=false (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank. 88 Issuing Bonds at Face Amount year), receiving cash of $900,000. On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $900,000, 7%, 10-year bond that pays semiannual interest of $31,500 ($900,000 × 7% × ½ (b) Journalize the entry to record the first interest payment on June 30. If an amount box does not require an entry, leave it blank. Check My Work (c) Journalize the entry to record the payment of the principal on the maturity date. If an amount box does not require an entry, leave it blank. ✩✩ O Save and Exit Upd. Next
Issuing Bonds at a Discount 1. On the first day of the fiscal year, a company issues a $8,200,000, 9%, 5-year bond that pays semiannual interest of $369,000 ($8,200,000 × 9% × ½), receiving cash of $7,883,409. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 2. The independent auditor's report a.gives the auditor's opinion regarding the fairness of the financial statements b.summarizes what the auditor did c.states that the financial statements were presented on time d.describes which financial statements are covered by the audit 3. On July 1 of the current year, the assets and liabilities of John Wong, DVM, are as follows: Cash, $10,242; Accounts Receivable, $8,407; Supplies, $1,842; Land, $24,497; Accounts Payable, $5,833. What is the amount of stockholders' equity as of July 1 of the current year?
takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSession Locator=&inprogress=false Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $3,300,000, 12%, 7-year bond that pays semiannual interest of $198,000 ($3,300,000 x 12% x 12), receiving cash of $3,151,271. 000 000 ✩✩ J All work saved Previous Updat Next >