Issuing Bonds at a Premium On January 1, the first day of the fiscal year, a company issues an $2,000,000, 5%, five-year bond that pays semiannual interest of $50,000 ($2,000,000 x 5% x ½), receiving cash of $2,102,260. Required:   Journalize the bond issuance. Refer to the chart of accounts for the exact wording of the account titles.

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 current fiscal year, $200,000 of 5-year, 10% bonds, with interest payable…

A: Discount on Bonds payable = Face value of bonds - issue price of bonds = $200,000 - $192,462 =…

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

A: Excess of issue price over the face value of the bond is Premium on Bonds Payable.   In the given…

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

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

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: Issuing bonds at a premium On the first day of the fiscal year, a company issues a $6,000,000, 6%,…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

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 July 1, Year 1, Khatri Industries Inc. issued $18,00 Interest on the bonds is payable…

A: Solution: Introduction: A bond is a financial debt instrument so it requires its issuing company to…

Q: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a $8,800,000, 6%,…

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

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

A: Journal Entry:   Journal entry has two effects for every transaction. The journal entry is passed by…

Q: Justin acquires 90% of the voting common shares of Stevens on January 1, 2019. In 2010, Justin pays…

A: % acquired by Justin = 90%

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: 1.  Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on…

A: Bonds Price will the Present Value of the interest to be paid over the period of the bonds and also…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $950,000, 8%, 10-year…

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

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: Issuing bonds at a premium On the first day of the fiscal year, a company issues a $4,600,000, 6%,…

A: JOURNAL ENTRIESJournal Entry is the First stage of Accounting Process. Journal Entry is the Process…

Q: (a) Journalize the entry to record the issuance of the bonds. If an amount box does not require an…

A: Bonds/Debentures are long term loans which a company borrow to finance its business. Company has to…

Q: Blossom Company issues $3.2 million, 10-year, 9% bonds at 96, with interest payable on December 31.…

A: 1. Date Account Titles and Explanation Debit Credit Jan. 1 Cash ($3,200,000*96/100)…

Q: On July 1, 20Y1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $6,900,000…

A:

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

A: Journal entries are prepared to record the financial and non financial transactions of the business…

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 an $380,000, 7%, 5-year bond that pays…

A:

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: Journalize the bond issuance. If an amount box does not require an entry, leave it blank.

A: Journal entries refers to the official book of a company which is used to record the day to day…

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: ssuing Bonds at a Discount 1. On the first day of the fiscal year, a company issues a $8,200,000,…

A: A bond issued on discount:-When a company issue a bond less than its par value is known as a bond…

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: 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: Entries for Bonds Payable, including bond redemption The following transactions were completed by…

A: Journalize the entries are as follows: Date Accounts title and explanation Debit $ Credit…

Q: QUESTION 7 On the first day of the fiscal year, a company issues a $960,000, 8%, 5-year bond that…

A: Journal entries are prepared to record the financial and non financial transactions of the business…

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: Issuing Bonds at a Discount On the first day of the fiscal year, a company issues a.$4,200,000, 10%,…

A: Bonds are issued by the companies to get the financial resources for working. It is a cheaper source…

Q: The master budget of Coronado Industries shows that the planned activity level for next year is…

A: Total overhead costs are the cost incurred on the production or manufacture of the goods. These are…

Q: Instructions On January 1, the first day of the fiscal year, a company issues a $2,050,000, 9% ,…

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

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

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

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $750,000, 6%, 10-year…

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

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

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: On the first day of the fiscal year, a company issues a $7,500,000, 6%, 8-year bond that pays…

A: Bonds are issued at a discount when market interest rate is higher than stated rate. Bonds are…

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…