of 6% were sold at par value. The bonds were dated January 1, 20x6. Interest will be paid twice a year on June 30 and December 31. The company has a fiscal year end of December 31.   Required: Prepare the first three journal entries required for this bond issuance.

Q: Wookie Company issues 9% , five-year bonds, on January 1 of this year, with a par value of $109,000…

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

Q: lendar year. Required: For all journal entries: If an amount box does not require an entry, leave…

A: Given Danzer Industries Inc. issued $56,000,000 of 20-year, 11% bonds at a market (effective)…

Q: On January 1, the first day of the fiscal year, a company issues a $650,000, 10%, 10-year bond that…

A: Bonds Payable: Bonds payable are generated when a company issues bonds to generate cash. As a bond…

Q: On January 1, Boston Enterprises issues bonds that have a $1,850,000 par value, mature in 20 years,…

A: Step 1:Answer 1.Computation of the amount of interest payment every six months:Par (maturity) Value…

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 January 1, Boston Enterprises issues bonds that have a $3,400,000 par value, mature in 20 years,…

A: The issuance of bonds is one method that businesses may use to obtain capital. A bond may be thought…

Q: Issuer Co. issued bonds with a face value of $200,000 and a stated rate of 3% on January 1, Year 1.…

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 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: On January 1, Boston Enterprises issues bonds that have a $1,500,000 par value, mature in 20 years,…

A: The bonds are issued generally to raise money and these are issued by the government and…

Q: A $1,000 bond, with interest at 9 ½% on March 1 and September 1, was purchased on November 23.…

A: Accrued interest: Accrued interest is the outstanding interest expense in the accounting period, as…

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: January 1, a company issues bonds dated January 1 with a par value of $390,000. The bonds mature in…

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

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 January 1, Applied Technologies Corporation (ATC) issued $600,000 in bonds that mature in 10…

A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…

Q: On September 1, Year 1, Parsons Company purchased $84, 000 of 10-year, 7% government bonds at 100…

A: The objective of the question is to journalize the purchase, receipt of interest, and sale of…

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 form of loan or debt issued by the company, on which it has to make regular interest…

Q: Avery Companies Ltd issued $500,000 of 6%, 5 year bonds for $521,880 on January 1, 1877, the day the…

A: a. Record journal entry for issuance of the bond as shown below:

Q: Paulson Company issues 6%, four-year bonds, on January 1 of this year, with a par value of $200,000…

A: Unamortized discount is the amount of discount on bonds payable which is not yet amorized as the…

Q: On the first day of the fiscal year, a company issues a $940,000, 10%, 5-year bond that pays…

A: Introduction:- When the face value of bond is higher than issue price of bonds then that represents…

Q: On June​ 30, Power Company issues 5%​, five​-year bonds payable with at face value of $60,000. The…

A: Journal entry : It is prepared to record the financial and non financial transaction of the business…

Q: On January 1, Boston Enterprises issues bonds that have a $1,500,000 par value, mature in 20 years,…

A: The bonds are the financial instruments that are issued to raise money from the market or investors.…

Q: Paulson Company issues 7%, four-year bonds, on January 1 of this year, with a par value of $109,000…

A: Journal entry is the primary step to record the transaction in the books of accounts. Interest…

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: 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 January 1, a co. issues bonds dated Jan 1 with a par value of 330,000. the bond mature in 5…

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

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

A: The journal entries are the first step of accounting process to record the transactions in the…

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 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 January 1, Boston Enterprises issues bonds that have a $1,450,000 par value, mature in 20 years,…

A: The issuance of bonds is one method that businesses may use to obtain capital. A bond may be thought…

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: Gia Company had the following bond issue: Date of issue/sale: April 1, 20-A Face value: $200,000…

A: Bonds are a form of liability being incurred by the business. It can be short term or long term,…

Q: On January 1, the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond…

A: Total premium on bonds issue = Issue value - Face value of bonds = $2,379,360 - $2,250,000 =…

Q: Company E issues $300,000 worth of 7.5% bonds on January 1, 20x2, which will mature on December 31,…

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

Q: Milan Company issued bonds with a face value of $463,000 on January 1, Year 1. The bonds had a 6…

A: A bond is a debt investment where an investor loans money to an entity (typically a corporation or…

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 $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: Ctrl lage On 1 July 2015, Ausra purchased 75% of Danute by way of a share exchange of two new shares…

A: It refers to the items which are presented separately in the Income statement as per IFRS due to…

Q: On the first day of the fiscal year, a company issues a $750,000, 7%, five-year bond that pays…

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

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

A: Journal entries are the primary reporting of the business transactions in the books of accounts.…

Q: On January 1, 20xx, the following bond was issued. $ 30,000 at 5%, term 3 years to 98. The bonds pay…

A: Bond is a debt security which is issued to raise fund for the organisation. The cost of bond is…

Q: On the first day of the fiscal year, a company issues a $980,000, 8%, 5-year bond that pays…

A: Bonds are debt instruments issued by government or a company to borrow funds from individual or…

Q: On January 1, Applied Technologies Corporation (ATC) issued $590,000 in bonds that mature in 10…

A: A bond is a debt made by an investor to a government agency or other borrower. The investor earns…