Instructions On January 1, the first day of the fiscal year, a company issues a S300.000, 9%, 10-year bond that pays semiannual interest of $13,500 (5300,000 x 9% x 1% year), receiving cash of $300,000. Required: Joumalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the psyment of the principal on the maturity date of December 31. Refer to the chart of accounts for the exact wordling of the account tities. CNOW joumais do not use lines for journal explanations. Every line on a jourmal page is used for debit or credit entries CNOW joumals will automatically indent a credit entry when a credit amount is entered. Journal Journalize the entries to record (a) the issuance of the bonds, (b) the first interest payment on June 30, and (c) the payment of the principal on the maturity date of December 31. Refer to the chart of accounts for the exact wording of the account titles. CNOW journais do not use lines for joumal explanations. Every line on a journal page is used for debit or credit entries. CNOW joumais will automatically indent a credit entry when a credit amount is entered PAGE 10 JOURNAL ACCOUNTING EQUATION DESCRIPTION POST. REF. LIABILITIES DATE DEBIT CREDIT ASSETS EQUITY Jan. 1 Cashi 300,000.00 Bonds Payable 300,000.00 2

Q: On the first day of the fiscal year, a company issues $2,000,000, 12%, five-year bond that pays…

A: Compute present value of the bonds as shown below:

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

A: Bonds: Bonds can be defined as the debt securities issued for the purpose of raising capital for the…

Q: On the first day of the fiscal year, a company issues a $4,800,000, 9%, 6-year bond that pays…

A: Formula: Interest expense = Bond face value x Interest rate x Time periods

Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, five-year bond that pays…

A: Bonds   Bond is a long-term financial instrument issued by a company for which the company pays…

Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…

A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300

Q: On the first day of the fiscal year, a company issues a $1,400,000, 10%, 7-year bond that pays…

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

Q: On January 1, 200C, the Gabriella Corporation issued $800,000, 8%, 10-year bonds at 98. Interest is…

A: working note: 1.The straight-line amortization of an Discount on bond payable will be $1600 ($16000…

Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…

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

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

A: Interest expense is the expense incurred by the company on the borrowed amount.

Q: On the first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays…

A: Journal entries refer to recording/ classifying the business transactions into books of accounts…

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

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

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

A: Solution A journal is a company's official book in which all business transaction are recorded in…

Q: On the first day of the fiscal year, a company issues a $2,800,000, 8%, 8-year bond that pays…

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

Q: On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that…

A: Bonds: Bonds are financial debt instruments issued by the corporations to raise for the purposes of…

Q: On April 1, Year 1, Brandi Corporation issued $20,000,000 of 5-year, 9% bonds at a market interest…

A: a. Issuance of the bonds on April 1, Year 1: Date Accounts title and explanation Debit ($) Credit…

Q: Grayco issued $2,000,000 of 10 year, 6% bonds on March 1 of the current year at face value, with…

A: SOlution: Date Particulars Debit Credit 01-Mar Cash 2000000           To bonds payable…

Q: On the first day of the fiscal year, a company issues an $302,000, 8%, 5-year bond that pays…

A: Under the straight line method of amortization, premium or discount of bond need to amortize equally…

Q: On the first day of the fiscal year, a company issues a $4,600,000, 10%, 8-year bond that pays…

A: Premium on bonds payable = Issue price - face value of bonds = 5434494-4600000 = $834,494

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 $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: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…

A: Prepare journal entry for issuance of bonds payable.

Q: On January 1, the first day of the fiscal year, a company issues a $5,000,000, 6%, 10-year bond that…

A: Requirement a:Prepare the journal entry to record issuance of the bonds.

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

A:

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 $3,500,000, 6%, five-year bond that pays…

A: Under straight line amortisation, the bond discount is amortised equally in each year.

Q: he first day of the fiscal year, a company issues a $3,500,000, 5%, 10-year bond that pays…

A: When the bonds are issued at par, the cash received is equal to the bond payable amount. When…

Q: On January 1, the first day of the fiscal year, a company issues a $1,500,000, 11% , five-year bond…

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

Q: On the first day of the fiscal year, a company issues a $888,000, 6%, 10-year bond that pays…

A:

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

A: Since it is a semiannual bond interest will be paid in 10 installments  ( 5 years × 2 )  The bond is…

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…

Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…

A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue of bond…

Q: On January 1, the first day of the fiscal year, a company issues a $550,000, 8%, 10-year bond that…

A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

Q: On the first day of the fiscal year, a company issues a $8,800,000, 11%, 7-year bond that pays…

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

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 the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond that pays…

A: Since bond has been issued at discount, difference between face value and issue price will be…

Q: On the first day of the fiscal year, a company issues a $674,000, 7%, 10-year bond that pays…

A:

Q: On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays…

A: Working note:   Premium on issue $1,004,900 – 957,000 $47,900 Semi-annual period 10×2…

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

A: Bonds are issued by the company for raising finance. It can be issued at a discount or at a premium.

Q: On the first day of the fiscal year, a company issues a $1,600,000, 6%, 6-year bond that pays…

A: SOLUTION PREMIUM ON BONDS- WHEN BONDS PAYABLE ARE ISSUED FOR AN AMOUNT GREATER THAN THEIR FACE  AND…

Q: On the first day of the fiscal year, a company issues a $5,000,000, 10%, 4-year bond that pays…

A: Premium on Bond issue = Issue price of bonds - Face value of bonds = $5,336,638 - $5,000,000 =…

Q: On the first day of the fiscal year, a company issues a $900,000, 9%, 5-year bond that pays…

A: Given, Face value = $900,000 Issue price = $884,176

Q: On the first day of the fiscal year, a company issues a $910,000, 9%, 5-year bond that pays…

A: Bonds are the liability of the issuing company payable after a definite period of time. Bonds when…

Q: Instructions On the first day of the fiscal year, a company issues a $2,750,000, 8%, five-year bond…

A: Bonds payable is one of the liability of the business, on which regular interest payments needs to…

Q: On the first day of the fiscal year, a company issues a $676,000, 11%, 10-year bond that pays…

A: A bond is a fixed pay instrument issued to represents to an advance made by a financial specialist…

Q: On the first day of the fiscal year, a company issues an $609,000, 10%, five-year bond that pays…

A: Record the first interest payment and amortization on Discount on payable

Q: On the first day of the fiscal year, a company issues a $584,000, 11%, 10-year bond that pays…

A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…

Q: On January 1, Year 1, a company issues $570,000 of 7% bonds, due in 10 years, with interest payable…

A: Bonds are the financial contract that is issued by the companies to raise the debt funds from the…

Q: On the first day of the fiscal year, a company issues a $980,000, 10%, 5-year bond that pays…

A: Solution: Issuance of bond payable will include discount on bond payable of = face value - issue…

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.