Kingbird corporation issued  $460,000,8%, 20 year bonds on January  1,2022 for $418,008 this price resulted  in effective interest rate of 9% on the bonds. Interest is payable annually  on January  1. Kingbird  uses the effective  interest method to amortize bond premium or discount  prepare the journal  entry to record  the issuance  of the bonds

Q: LRNA Company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. This price…

A: The bonds are issued at premium when the market rate is lower than the coupon rate of bonds payable.…

Q: Ellis Company issues 6.5% , five-year bonds dated January 1, 2019, with a $570,000 par value. The…

A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds payable.…

Q: On January 1, 2020, the Rangler Company issued $600,000 of eight-year bonds at 102. The stated…

A: Cash(600000*102/100) Dr $612000 Bond payable  Cr                      $600000 Premium on issue   Cr.…

Q: Oakley Company issued a $40,000, 10%, 10-year bond payable at 97 on January 1, 2024. Interest is…

A: If the issued Price is less than the face value , it will be treated as that Bonds are issued at…

Q: Un 1/1/2020, Blue Company issued 5-year, 9% bonds with a par value of $1,000,000 The company…

A: Bond is an instrument which is issued at par, discount or at premium.  When company required the…

Q: Amwaj Company issued 129, 10-year bonds with a par value of BD 2,000,000 on January 1, 2018.…

A: Journal Entries are primary record maintained by an entity for the occurrence or non-occurrence of…

Q: On January 1, 2022, Kristopher Co. issued ten-year bonds with a face value of $6,000,000 and a…

A: The bonds are the financial instruments of the business. The bonds are reported as long term…

Q: In order to fulfill its financing activities, Astro Co. issued Rp 505.000,000, 12%, 10-year bonds…

A: Bond Discount Amortization: If bond’s coupon rate is less than  rate of return expected in the…

Q: January 1, 2024, Nurses Credit Union (NCU) issued 7%, 20-year bonds payable with face value of…

A: The retirement of a bond is the repayment of bond at maturity. The principal is repaid and the…

Q: Martinez Company issued $650,000, 9%, 10-year bonds on January 1, 2020, at 103. Interest is payable…

A: Interest to be paid = Face value of bonds x stated rate of interest x period = $650,000 x 9% =…

Q: S14-6 Journalizing bond transactions Power Company issued a $1,000,000, 5%, 5-vear bond payable at…

A: Bonds are a form of debt or loan taken by the company, on which company has to make regular interest…

Q: On January 1st, 2020, Clem Company issued $300,000 of 10-year, 6% bonds on January 1, 2018. The…

A: Journal entries refers to the process of systematic documentation of the financial transactions of a…

Q: The Golden Company issues $518,000 of 12%, 10-year bonds at 103 on March 31, 2025. The bonds pay…

A: The objective of the question is to determine the correct journal entry to record the issuance of…

Q: Rombus corp issued P600,000, 9%, 20-year bonds on January 1, 2020, at P103. Interest is payable…

A: Each transactions needs to be recorded in the books of accounts. Journal entries are basic…

Q: Sheridan Company issued $279,000, 9%, 15-year bonds on December 31, 2021, for $267,840. Interest is…

A: In the given question we need to prepare the journal entries for following: (a)The issuance of the…

Q: Massy Company issued $4,000,000 of 10-year, 11% bonds on January 4, 2021. The bonds pay interest…

A: Introduction:- The act of recording or keeping track of any financial or non-financial action is…

Q: Price Company issued a $700,000, 8%, 10-year bond payable at face value on January 1, 2018 Interest…

A: A bond refers to fixed income instrument that represents a loan made by an investor to a borrower…

Q: On January 1, 2022, Sheridan Company issued $2,060,000 face value, 8%, 10-year bonds at $1,927,796.…

A: Bond interest = carrying value × effective rate Interest expense = 1,927,796 × 9% = 173501.64…

Q: Prepare the journal entry to record the redemption of the bonds at maturity, assuming interest for…

A: Bonds is a financial debt instrument that pays fixed periodic interest and face value amount at the…

Q: Volunteer Inc. issued bonds with a $600,000 face value, 8% interest rate, and a 4-year term on July…

A: Given Information: Bonds issued at face value       $600,000 Amount received…

Q: Pharoah Company issued $380,000 of 6%, 20-year bonds on January 1, 2022, at face value. Interest is…

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

Q: On July 1, 2023, AAA Company issued P1,198,000 of 10%, 20 year bonds with a face amount of…

A: The bonds are issued at premium when market rate is lower than coupon rate of bonds.

Q: Metro Inc. issued $200,000 of 10% bonds dated May 1, 2021 for $239,588. The bonds mature in 20…

A: Bond is financial investment securities where investors lend money to a person. Interest and…

Q: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…

A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200

Q: Elroy Inc. sold a 7%, 15-year bond on January 1. The bond sold 106 when the market rate of interest…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: Prepare journal entries for the following transactions.

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

Q: Swiss Inc. sold 20-year bonds with a total face amount of $401,000 and a stated rate of 7.5%. The…

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

Q: Crane Company issued $830,000, 8%, 20-year bonds on January 1, 2025 at 103. Interest is payable…

A: The bonds are issued at a premium when the market date is lower than the coupon rate of bonds…

Q: Simko Company issued $670,000, 10-year, 4 percent bonds on January 1, 2021. The bonds were issued…

A: When, the debentures are issued at less than par value, it is has been issued at discount. The…

Q: Clark Company issued $80,000 of 10-year, 7% bonds payable on January 1, 2024. Clark Company pays…

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

Q: On January 31, 2020, Courtenay Sports Cars issued 14-year, 7% bonds with a face value of $160,000.…

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

Q: Aggies Inc. issued bonds with a $550,000 face value, 10% interest rate, and a 4-year term on July 1,…

A: Bonds may sometime issue at premium and the amount of premium is amortized over the term of bonds.…

Q: On January 1, 2021, Universe of Fun issues $900,000, 8% bonds that mature in 10 years. The market…

A: Bonds: This is just like debt for the issue of investors by the company. Bond is dependent on the…

Q: The Golden Company issues $539,000 of 7%, 10-year bonds at 104 on March 31, 2019. The bonds pay…

A: An interest-bearing bond is a type of debt security issued by a borrower, typically a corporation or…

Q: On January 1, 2018, Technicians Credit Union (TCU) issued 5%, 20-year bonds payable with face value…

A: Premium on Bonds Payable = Face value of Bonds - Issue price = $100000 - $100000*106% = $6000

Q: Simko Company issued $800,000, 10-year, 6 percent bonds on January 1, 2021. The bonds were issued…

A: "Bonds" are debt securities issued by governments, cities, or companies when they need to raise…

Q: Legacy issues $580,000 of 8.0%, four-year bonds dated January 1, 2021, that pay interest…

A: To assist you in completing the table and journal entries, we need to follow these steps: 1. Journal…

Q: Ivanhoe Company issues $3,000,000, 10-year, 8% bonds at 93, with interest payable each January 1.…

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

Q: Sciamanna Corporation issued $500,000 of 6%, 10-year bonds payable on January 1, 2022. The market…

A: The cash borrowed on January 1, 2022 would be present value of interest annuity & maturity…

Q: Mitchell Inc. received $568,547 from the issuance of 600, 6%, $1,000 bonds on January 1, 2020. The…

A: First, let's compute if there's a discount or premium on the bonds issued. Get the difference…

Q: On January 31, 2021, Dogwood Logistics, Inc, issued ten-year, 12% bonds payable with a face value of…

A: Lets understand the basics.Bonds can be issued at,(1) Par value(2) Premium(3) Discount Amortization…

Q: Ellis Company issues 8.0%, five-year bonds dated January 1, 2021, with a $530,000 par value. The…

A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

Q: Blossom Company issued $510,000 of 8%, 20-year bonds on January 1, 2027, at face value. Interest is…

A: Interest expense= Face value×Interest expenseFor issue of bonds the cash account is to be debited…

Q: Kingbind, Inc. issues $4.1 million, 10-year. 9% bonds at 102, with interest payable on January 1.…

A: Solution: Journal entries : The straight line method :

Q: 1.  On July 1, 2018, Volunteer Inc. issued bonds with a $500,000 face value at 108.0 and the 5-year…

A: Recording transactions in books of accounts is called accounting. This recording is done through…

Q: January 1, 2024, Nurses Credit Union (NCU) issued 5%, 20-year bonds payable with face value of…

A: Bonds The type of securities that are sold by corporations and governments to raise money from…

Q: On May 1, 2021, Ligertwood Co. issued P5,000,000, 10%, three-year bonds to yield 8%. The bonds pay…

A: Bond is a debt security which carries a fixed interest rate. The fixed interest rate is known as…

Q: Ellis Company issues 6.5%, five-year bonds dated January 1, 2021, with a $250,000 par value. The…

A: Bonds: Bond is a debt security.The amount of interest is paid on bond.  Bond amortization:…