Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a.$4,200,000, 10%, five-year bond that pays semiannual interest of $210,000 ($4,200,000 x 10% x %), receiving cash of $4,041,710. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.

Q: Favreau Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1,…

A: Market / Effective rate : 11% p.a. or 5.5% semi-annually Term of bond = 7 Years Semi-annual interest…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $7,800,000, 8%,…

A: Discount = Face value - Cash Discount = $7,800,000 - $6,791,633 Discount = $1,008,367

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

A: Bonds are a source of funds for a business as a liability. It is a form of loan where charges are…

Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays…

A: When an event occurs in the business and it can be measured and expressed in terms of money, it…

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: 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: 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 the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays…

A: Solution: Discount on issue of bond = Face value - Issue price = $946,000 - $889,240 = $56,760…

Q: On the first day of the fiscal year, a company issues a $5,100,000, 12%, 6-year bond that pays…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $4,500,000,…

A: Bonds: To raise the funds and finance the operations of the company, money is borrowed from the…

Q: On the first day of the fiscal year, a company issues an $380,000, 7%, 5-year bond that pays…

A:

Q: Issuing Bonds at Face Amount On January 1, the first day of the fiscal year, Designer Fabric Inc.…

A: Journal entries are used to record entries in chronological order for a business.

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

A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…

Q: Issuing Bonds at a Discount On January 1, the first day of the fiscal year, a company issues a…

A: Journal entry is a process of recording business transactions in the books of accounts for the first…

Q: On the first day of the fiscal year, a company issues a $5,100,000, 9%, 4-year bond that pays…

A: Bonds issued at discount: A bond said to be issued at discount when its issue price is less than…

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: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…

A: Solution to a. & b. are as follows:

Q: On July 1, a company issues a $1,000,000, 7%, five-year bond that pays semiannual interest of…

A: The discount on issue of bond is amortized over the life of the bond When the same amount of bond…

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

A: Interest is calculated as a percentage of the loan (or deposit) balance, which is paid to the lender…

Q: On January 1, the first day of the fiscal year, a company issues a $1,800,000, 4% , five-year bond…

A: When the issue price of the bonds is more than the face value of the bonds the bonds are issued at…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,200,000, 9%,…

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

Q: Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley…

A: Solution a: Journal Entries - Smiley Corporation Date Particulars Debit Credit 1-Apr-20Y1…

Q: On the first day of the fiscal year, a company issues a $4,500,000, 10%, 9-year bond that pays…

A: Here in this question, we are required make entry for bond issued at discount. Bond is knowing to be…

Q: Issuing bonds at a discountOn the first day of the fiscal year, a company issues a $3,500,000, 6%…

A: Premium (discount) on bonds issue =   Issue value - face value of bonds = $3,350,000 - $3,500,000 =…

Q: On the first day of the fiscal year, a company issues an $994,000, 7%, 5-year bond that pays…

A: Total discount on bonds issue =  Face value of the bonds - Issue value of the bonds = 994000-934400…

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 $6,800,000, 8%, 10-year bond that pays…

A: Bonds are the instruments that are being issued for the purpose of raising finance. These are the…

Q: On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays…

A: Discount on bonds issue = Face value of bonds - issue price =  $4,900,000 - $4,440,130 = $459,870

Q: ssuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,700,000, 9%,…

A:

Q: On the first day of the fiscal year, a company issues a $1,100,000, 6%, 9-year bond that pays…

A: When a bond issued for a amount more than its face value then the excess amount received would be…

Q: On the first day of the fiscal year, a company issues an $565,000, 9%, 5-year bond that pays…

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Journalize the bond issuance. If an amount box does not require an entry,

A: Pass necessary journal.

Q: On January 1, the first day of the fiscal year, a company issues a $700,000, 7%, 10-year bond that…

A: Formula: Interest amount = Bond amount x Time period x Interest rate

Q: Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Livingston Corporation, a…

A:

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 $8,300,000, 6%, 8-year bond that pays…

A: Cash interest  = $8,300,000 x 6% x 1/2 = $249,000

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: Issuing Bonds at a Face Amount On January 1, the first day of the fiscal year, a company issues a…

A:

Q: Favreau Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1,…

A: Bonds payable are a form of loan or amount taken by the business, on which regular interest payments…

Q: On the first day of the fiscal year, a company issues a $7,300,000, 8%, 10-year bond that pays…

A: Date Account titles and Explanation Debit Credit June 30 Interest expense ($292,000+$65,428)…

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

A: Formula: Interest amount = Bond value x Time period x Interest rate

Q: On the first day of the fiscal year, a company issues an $440,000, 10%, five-year bond that pays…

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

Q: On the first day of the fiscal year, a company issues a $7,200,000, 10%, 7-year bond that pays…

A: Given the face value of bond = $7,200,000 Life of bond = 7 years Semi annual interest = 360,000 Cash…

Q: Issuing Bonds at a Premium On January 1, the first day of the fiscal year, a company issues an…

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

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: Bond Discount, Entries for Bonds Payable Transactions On July 1, 20Y1, Livingston Corporation, a…

A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Issuing Bonds at a Premium On the first day of the fiscal year, a company issues an $4,900,000, 6%,…

A: Premium on bonds payable = Cash received - bonds face value             = 5,258,948 - 4,900,000…