On January 1, 2019, Berlin Corporation issued $500,000 of 11.5% bonds due December 31, 2025, at 102. The bonds pay interest semiannually on June 30 and December 31. Each $1,000 bond carried 20 warrants, and the exchange of two warrants allowed the holder to acquire one share of $10 par common stock for $50. Shortly after the time of issue, the bonds were quoted at 98 ex rights and each individual warrant was quoted at $5. Subsequently, on March 31, 2019, 8,000 rights were exercised. Required: 1. Prepare the journal entry to record the bond issue. 2. Prepare the journal entries on March 31, 2019, to record the exchange of the warrants for common shares.

JJ Company issued an 8%, P8,400,000 bonds at 120 on January 1, 2019. Interest on these bonds is paid every June 30 and December 31. Moreover, bonds mature every December 31 at the following rates: 2020, P1,800,000; 2022, P3,000,000; 2023, P1,500,000; and 2024, 2,100,000, respectively. On December 31, 2020, P800,000 bonds maturing on December 31, 2023 were retired at 98. 1. Compute for the issue price of the bonds on January 1, 2019. 2. Compute for the bonds outstanding for the year 2022.  3. Compute for the gain or loss on retirement. (Note: If it is a loss, use negative sign. Example, -1,000.)  3. Compute for the gain or loss on retirement. (Note: If it is a loss, use negative sign. Example, -1,000.)

On July 1, 2019, Cyclic Inc issued $1,000,000 in principal of 6% bonds due in July 2024. The bond pays interest quarterly on January 2, April 1, July 1, and October 1. On July 1, 2020, immediately following an interest payment. Epimetheus Bank purchased $5000 in face value of these bonds for $4501. Epimetheus Bank intends to trade this bond as part of its business operations. When Epimetheus Bank purchased the bond, it calculated that the historical market rate was 9%. When Epimetheus Bank received the interest payment on October 1,2020, what were the journal entries? Select all that apply. Cr. Interest revenue $75 Dr. Amortization of discount on trading debt $26 Cr. Interest revenue $101 Dr Cash $75 Dr Cash $101 Cr. Trading debt receivable $26

On April 1, 2024, Déjà Vu Company issued 12% bonds that have a total face value of $140,000 (each bond has a face value of $1,000). The bonds sold for $164,023 and mature in 20 years. The effective interest rate for the bonds was 10% on 4/1/24. Interest is paid semiannually on September 30 and March 31. The market value of the bonds was 102 on 12/31/24 and $104 on 12/31/25. The market rate of interest on the bonds fell to 9% on 8/1/24. David Company purchased all of the bonds as an investment on 4/1/2024. A partial amortization schedule appears below. 9/30/2024 8,400 3/31/2025 8,400 9/30/2025 8,400 3/31/2026 8,400 9/30/2026 8,400 3/31/2027 8,400 9/30/2027 8,400 Cash Interest $__ Interest Income 8,201 8,191 8,181 8,170 8,158 8,146 8,134 $_ Premium Amortized 199 209 219 230 242 254 266 What is the amount of assets related to the bonds on David's balance sheet: As of 12/31/24 if the bonds are accounted for as held-to-maturity. Carrying Value 164,023 163,824 163,615 $_ As of 12/31/2024 if…

Leong Corporation was authorized to issue $500,000 face value bonds on January 1, 2017. The corporation issued $100,000 of face value bonds on that date. The bonds will mature on December 31, 2020. Interest is paid semi-annually on June 30 and December 31 each year. The bond interest rate per the terms of the indenture is 12% per year. Required: Answer the questions for each of the following cases. Case A: The bonds were issued at face value. Case B: The bonds were issued for $112,000. Case C: The bonds were issued for $88,000. a. How much cash does Leong receive for the bonds? b. How much annual interest must the corporation pay? On what amount does the corporation pay? c. Prepare the journal entry to record the sale of the bonds. d. Record the entries applicable to interest and straight-line amortization for June 30, 2017 and for December 31, 2017.

Spurrier Corp. has 10-year bonds with a face value of $400,000 and a carrying value of $420,345 as of 12/31/19.  On June 30, 2020, they pay their bondholders $12,000 and recognize $10,509 in interest expense.  Please provide the June 30, 2019 carrying value of the bonds after the interest payment.

On July 1, 2019, Salem Corporation issued $3.3 million of 9% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $33, one share of $1 par value common stock at any time during the next 10 years. Salem sold the bonds for $3.3 million. The value of the warrants at the time of issuance was $132,000. Required:   Prepare in general journal format the entry to record the issuance of the bonds.

On May 1, 2018, Green Corporation issued $1,100,000 of 12% bonds, dated January 1, 2018, for $1,074,000 plus accrued interest. The bonds mature on December 31, 2032, and pay interest semiannually on June 30 and December 31. Green's fiscal year ends on December 31 each year. Required: 1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. 2. Prepare the journal entry for the issuance of the bonds. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Determine the amount of accrued interest that was included in the proceeds received from the bond sale. Accrued interest

On July 1, 2019, Salem Corporation issued $3.2 million of 10% bonds payable in 10 years. The bonds pay interest semiannually. The bonds include detachable warrants giving the bondholder the right to purchase for $32, one share of $1 par value common stock at any time during the next 10 years. Salem sold the bonds for $3.2 million. The value of the warrants at the time of issuance was $128,000. Required:   Prepare in general journal format the entry to record the issuance of the bonds.

Madison Corporation is authorized to issue $570,000 of 5-year bonds dated June 30, 2019, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019. Required: Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.) 1.  The bonds to yield 12% $fill in the blank 1 2.  The bonds to yield 10% $fill in the blank 2