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, 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 April 30, Year 1, Augusta Corporation issued $5,000,000 of 4% 10-year bonds paying interest…

A: Journal entry refers to the process of recording business transactions for first time in the books…

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

A: Cash received on bonds issue =Face value of bonds x issue price = $200,000 x 99/100 = $198,000

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: 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: 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: 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 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: 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 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 January 1, Year 1, Parker Company issued bonds with a face value of $65,000, a stated rate of…

A: Bond is a financial instrument which is issued by the large organization to raise the funds. Bonds…

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, Year 1, Victor Company issued bonds with a $875,000 face value, a stated rate of…

A: Lets understand the basics. When bond is issued at less than the face value of bond then bond is…

Q: Journalize the first interest payment and the amortization of the related bond discount. Round to…

A: A bond is said to be issued at a discount when the buyer pays an amount which is less than the par…

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 Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $910 for $94,800. The bonds…

A: Bonds payable (at par) = 100 bonds * $910= $ 91000 Bond issued value= $ 94800 Premium on bond issue=…

Q: On 1 April, year 1, Happy Corporation issues $50 million of 10%, 30-year bonds payable at par.…

A: Journal entry to record first cash payment to bondholders:

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: Fireside, Inc. had the following bond issue: Date of issue/sale May 1, 20-A Principal amount:…

A: Journal entry is a record of financial transaction in the books of accounts maintained by an…

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: 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 a $4,200,000, 10%, five-year bond that pays…

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

Q: On January 1, Applied Technologies Corporation (ATC) issued $520,000 in bonds that mature in 10…

A: When the market interest rate and stated interest rate both are same, then bonds will be issued at…

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: Diaz Company issued bonds with a face value of $180,000 on January 1, Year 1. The bonds had a stated…

A: Bond is a financial instrument used to raise funds by large organizations. The issue price of bond…

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: 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 Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 each for $104,000. The…

A: Journal entries are passed following the golden rules of accounting  Debit all assets and expenses…

Q: On January 1, Lincoln Corp. issued $3,000,000, 11% bonds for $3,195,000. The market rate of interest…

A: Carrying amount of bonds = Issue price of the bonds - Premium amortized Cash interest paid= Face…

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…