On January 1, 2019, Kelly Corporation acquired bonds with a face value of $400,000 for $386,808.18, a price that yields a 9% effective annual interest rate. The bonds carry a 8% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2022, and are being held to maturity. Required:   Prepare journal entries to record the purchase of the bonds and the first two interest receipts using the:   1. straight-line method of amortization 2. effective interest method of amortization

On January 1, 2019, Hackman Corporation issued $1,400,000 face value 12% bonds dated January 1, 2019, for $1,423,060. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, 2023. Hackman uses the straight-line amortization method. Required: Record the issuance of the bonds and the first two interest payments.

Prepare all journal entries and adjusting journal entries necessary to record the information below for 2022: Red Robin holds corporate bonds with a face value of $218,500. It purchased these bonds on January 1 of the prior year (2021). The stated rate of the bonds is 4.85 %, but they were purchased at an effective rate of 7%. The bonds are 5-year bonds and pay interest on December 31 every year. Red Robin correctly classifies this investment as available for sale. This is the only AFS debt investment that Red Robin has ever had. The fair value of the bond on December 31 of the current year is $224,900.

Prepare journal entries to record the following transactions relating to long-term bonds of Lancaster Inc. Show calculations and round to the nearest dollar.                 a) On June 1, 2023, Lancaster Inc. issued $400,000, 6% bonds for $391,760,     including accrued interest. The bonds were dated February 1, 2023, and     interest is payable semi-annually on February 1 and August 1 with the bonds     maturing on February 1, 2033. The bonds are callable at 102.                       b) On August 1, 2023, Lancaster paid the semi-annual interest and recorded     the amortization of the discount or premium, using straight-line amortization.                   c) On February 1, 2025, Lancaster paid the semi-annual interest and recorded     amortization of the discount or premium. Assume that a reversing entry was     made on January 1, 2025.                             d) The company then purchased $240,000 of the bonds at the call price   Do not give…

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

On May 1, 2021, Bramble Corp. purchased $1,580,000 of 12% bonds, interest payable on January 1 and July 1, for $1,406,500 plus accrued interest. The bonds mature on January 1, 2027. Amortization is recorded when interest is received by the straight-line method. (Assume bonds are available for sale.) (a) Prepare the journal entry for May 1, 2021.

On January 1, 2019, Company C issues $200,000 of its 6% bonds which mature in 10 years. Interest is paid annually on December 31. The market (effective) rate of interest is 4%. If the bond sells as 88.2, what the amount of interest expense reported on the Income Statement for 2019 (hint: prepare an amortization schedule)

prepare the appropriate journal entry for the redemption or conversion of the bonds.   Pharoah Company redeemed $155,000 face value, 17% bonds on June 30, 2020, at 96. The carrying value of the bonds at the redemption date was $158,000. The bonds pay annual interest, and the interest payment due on June 30, 2020, has been made and recorded.

On January 1, 2024, a company issues a $3, 500, 000, 10%, 5-year bonds that pays semiannual interest on July 1 and January 1. Assume the bonds were sold at: A. 92% B. 102% Instructions: For A and B journalize the issuance of the bonds. Journalize the first and second interest payment, using straight line amortization. Compute the bond's price (present value) assuming the following market interest: A. 12.5% B. 8.5%

On March 31, 2021, Gardner Corporation received authorization to issue $50,000 of 9 percent, 30-year bonds payable. The bonds pay interest on March 31 and September 30. The entire issue was dated March 31, 2021, but the bonds were not issued until April 30, 2021. They were issued at face value. a. Prepare the journal entry at April 30, 2021, to record the sale of the bonds. b. Prepare the journal entry at September 30, 2021, to record the semiannual bond interest payment. c. Prepare the adjusting entry at December 31, 2021, to record bond interest expense accrued since September 30, 2021. (Assume that no monthly adjusting entries to accrue interest expense had been made prior Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.