On January 1, 2020, Merry Company issued its 9% P9,000,000 face value bonds, which matures on January 1, 2030 for P8,451,000 to yield an effective rate of 10%. Merry Company uses straight-line method of amortization. Interest is payable annually on December 31. At December 31, 2020, what is the balance of the discount on bonds payable? a. P464,490 c. P531,900 b. P591,000 d. P472,800

Q: On January 1, 2023, Jones Corporation issued $2.982.000, 9%, 5-year bonds with interest payable on…

A: Interest expense on bonds is calculated at the market rate of interest on the issue value of the…

Q: Help Seve & E On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1.000.000…

A: Par Value of the bonds = $1,000,000 Semi-annual Interest payment = 1,000,000 x 8% ÷ 2…

Q: On Jan. 1, 2020, Eee Company issued 9% bonds in the amount of P 500,000, which mature on Jan. 1,…

A: Formula: Carrying value of bonds payable = Issue price of the bonds + Amortization of bond discount…

Q: On January 1, 2024, Mechanics Credit Union (MCU) issued 8%, 20-year bonds payable with face value of…

A: The bonds are the debt instrument. These debt instruments are generally issued by the corporation or…

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: The Maria Miller Company issued $480,000 of 10%  20 yr bonds on January 1, 2025 at 103. Interest is…

A: A Bond is a fixed income that is made by investors, debtholders, or creditors to borrowers used by…

Q: On January 2, 2020, Carla Corporation issued $1,200,000 of 10% bonds at 96 due December 31, 2029.…

A: The loss on redemption of the bond payable is recorded when the amount paid for such redemption is…

Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…

A: Formula: Semiannual interest payment = Face value of bonds x rate of interest x no. of months / 12…

Q: On January 1, 2021, a company issues 3-year bonds with a face value of $50,000 and a stated interest…

A: Interest expense = Issue price of bond × Market interest rate Cash paid = face value×stated interest…

Q: Splish Brothers Corporation issued $580.000, 6%, 20-year bonds on January 1, 2020, for $518,555.…

A: The effective interest method of bond is used to discount or write off. It consider purchase price…

Q: Frozen Company issues $34,800 of ten year bonds on January 1, 2020 at 108. It uses the straight line…

A: Financial statements are formal reports that summarize the financial performance, financial…

Q: Lopez Plastics Co. (LPC) issued callable bonds on January 1, 2021. LPC's accountant has projected…

A: Lets understand the basics. When callable bonds called by the entity then there is a possibility of…

Q: On January 1, 2021, Green company issued P1,000,000, 12% bonds for P1,065,000, a price that yields…

A: Carrying value of the bonds payable is the value of the bonds on the books inculing the face value…

Q: Frozen Company issues $33,600 of ten year bonds on January 1, 2020 at 108. It uses the straight line…

A: INTRODUCTION: When bonds are issued, cash is received, and bonds payable are credited. But, if a…

Q: One June 30,2020, Pronghorn Company issued $4,470,000 face value of 14%, 20 year bonds at $5142560,…

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

Q: help

A: Bonds are described as those securities which represent the amount of debt lent to the borrower.…

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: On January 1, 2019, SB Company issued its 10% bonds in the face amount of P10,000,000 that mature on…

A: Solution: Interest expense on July 1 = P9,160,000*12%*6/12 = P549,600 Semiannual interest paid =…

Q: Dixon Corp issued 5,000, 9%, 5-year, P1,000 bonds dated January 1, 2020, at P100 1. Prepare the…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Crane Company issues $5040000, 7%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds…

A: Proceeds from bond is the Present Value of the Bond. Present value of Bond is the present value of…

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: Kk.371. Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $1,250,000 in 7%…

A: Bonds are financial instruments that reflect loans made by investors to borrowers, who are often…

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

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

Q: On June 30, 2024, Gunderson Electronics issued 8% stated rate bonds with a face amount of $300…

A: A bond is a fixed income security which offers the investor a fixed set of periodic coupon payments…

Q: On January 1, 2022 Company K issued $1,000,000, 5% bonds for $855,000. The market rate of interest…

A: One of the source used by the business organizations to meet their financial requirements is issue…

Q: nd July 1. Prepare the entry to record the payment of interest on July 1, 2021

A: 1. Amount of interest to be paid is calculated on the face value.    2. Journal entry for recording…

Q: On January 1, 2019, Company X issued $550,000 of twenty-year bonds when a market rate was 2%. The…

A: The carrying value of a bond refers to the face value plus any unamortized premium or minus any…

Q: Kingbird corporation  issued $460,000 ,8% 20 year bonds on January  1 2022 for $418,008. This  price…

A: Discount on Bond = $460,000-$418,008 = $41992 Accrual interest     = $460,000*8% = $36800 Bond…

Q: On July 1, 2020, Kwek-kwek Company issued 600 of its 10%, P1,000 bonds at 99 plus accrued interest.…

A: The bonds are issued at premium or discount depending on the market rate of interest of bonds.

Q: Question 2 On April 1, 2019, Ellison Co. issued 4-year, 8%, €100,000 face value bonds. The bonds…

A: (a) Bond Amortization Schedule: (Amount in Euros) Date…

Q: Bonds Issued at a Discount (Effective Interest) Sicily Corporation issued $900,000 in 6% bonds…

A: Bond Issued at Discount  When bond is issued at less than the face value,when the stated interest…

Q: Pharoah Company issued $760,000, 8%, 10-year bonds on December 31, 2021, for $690,000. Interest is…

A: Journal entries are made to record the transactions as the first process in the books of accounts…

Q: Hadley Ltd. is authorized issue $1,000,000 of 2%, 10-year bonds payable. On December 31, 2021, when…

A: A firm or group may issue bonds payable as a form of long-term debt to raise capital from investors.…

Q: n April 2, 2020, Lucan Company issued 9% bonds in the amount of P10,000,000 which mature on April 2,…

A: Price of bond is the present value of coupon payment and present value of the par value of the bond…

Q: PB6. 13.3 Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term…

A: Solution: (A).  Date General Journal Debit Credit July 1, 2018 Cash $480,000     Discount on…

Q: On January 1, 2020, Sheridan Company issued $351,500, 6%, 5-year bonds at face value. Interest is…

A: Interest expense = Par value of bonds x Interest rate = $351,500 x 6% = $21,090

Q: ony Hawk's Adventure (THA) issued callable bonds on January 1, 2021. THA's accountant has projected…

A: Callable bond: When it comes to bonds (debt securities), callable bonds (also known as redeemable…

Q: On January 1, 2021, a company issues 3-year bonds with a face value of $160,000 and a stated…

A: Effective interest rate = 5%Therefore, interest expense to be @ market rate = 5% on the Market value…

Q: Current Attempt in Progress On July 1, 2023, Ivanhoe Inc. issued $330000, 9% bonds, which mature on…

A: Cash Payment of Interest = Face Value * Stated rate of InterestInterest Expense = Carrying Value *…

Q: On June 30, 2021, the market interest rate is 10% Team Corporation issues $500.000 of 11%, 25-year…

A: Bond: A bond is a type of debt obligation where the borrower is required to repay the principal…

Q: Kingbird Corporation issued $460,000, 8%, 20-year bonds on January 1, 2022, for $418,008. This price…

A: The bonds are the long-term liabilities that are issued to raise the money from the market. The…

Q: Sterium Company issues P1,000,000 face value, 6%, 5-year bonds payable on December 31, 2018.…

A: Journal entries forms part of basic accounting entries in which transactions of an organisation are…