On January 1, 2021, COVID Hospital issued a P250,000, 10 percent, 5-year bond for P231,601. Interest is payable on June 30 and December 31. Felipe uses the effective-interest method to amortize all premiums and discounts. The effective interest rate was 12 percent based on your inquiry with the bank and other financial institution for the same transaction .  The accounting department recorded interest expense of P12,500for the fiscal year ended JUNE 30, 2021.    How much interest expense must be adjusted to correct the interest expense recorded as of June 30, 2021?   Answer in figures, ignore peso sign.

Q: On January 1, 2021, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $360000 x…

Q: On January 1, 2021, Baddour, Inc., issued 10% bonds with a face amount of $160 million. The bonds…

A: Requirement 1:

Q: On the first day of the fiscal year, a company issues a $4,400,000, 7%, 8-year bond that pays…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…

Q: On January 1, 2021, Lyle’s Limeade issues 4%, 10-year bonds with a face amount of $90,000 for…

A:

Q: Homwork question 5- chapter 9

A: Calculate the amount of interest expense:

Q: On January 1, 2021, Splash City issues $320,000 of 8% bonds, due in 15 years, with interest payable…

A: Semiannual interest payment = Face value of bonds x rate of interest x no. of months/12 = $320000 x…

Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $950,000, 8%, 10-year…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: On January 1, 2021, Surreal Manufacturing issued 590 bonds, each with a face value of $1,000, a…

A: Journal is the primary book where transactions are originally recorded. Further, a journal entry is…

Q: On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: The interest expense on the income statement for the year ended December 31, 2021 is:

A: Bonds are a kind of financial instrument issued for raising cash by the entities for a perspective…

Q: On January 1, 2021, Lyle's Limeade issues 3%, 20-year bonds with a face amount of $78,000 for…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds.

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 the first day of the fiscal year, a company issues an $302,000, 8%, 5-year bond that pays…

A: Under the straight line method of amortization, premium or discount of bond need to amortize equally…

Q: On January 1, 2021, Splash City issues $350,000 of 8% bonds, due in 15 years, with interest payable…

A: Solution 2: Journal Entries - Splash City Date Particulars Debit Credit 1-Jan-21 Cash…

Q: Bryan Company issued $780,000 of 8% face value bonds on January 1, 2019, for $763,800. The bonds are…

A:

Q: On January 1, 2021, Splash City issues $320,000 of 8% bonds, due in 15 years, with interest payable…

A: Entry to record the issuance of bonds payable.

Q: Hassan Mustafa realized that when the bonds mature on January 20, 2041, there must be $5,200,000…

A: Sinking fund is type of account in which periodic payment is paid in each period and interest is…

Q: On January 1, 2021, Splash City issues $450,000 of 7% bonds, due in 10 years, with interest payable…

A: Solution;- Preparation of amortization schedules as follows:-

Q: On the first day of the fiscal year, a company issues a $8,900,000, 8%, 5-year bond that pays…

A: Premium on bonds payable:  It occurs when the bonds are issued at a high price than the face value.

Q: On March 31, 2018, Wins Corporation issued $2,000,000 of its 6%, 10-year bonds for $1,758,200…

A: S.No. Date Particulars Debit Credit 1 March 31, 2018 Cash  $  1,758,200.00       Discount on…

Q: What amount of interest expense will be recorded in the December 31, 2021, annual income statement?

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

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 September 1, 2021, ETC Company received P1,032,880 for P1,000,000 face amount, 12% bonds, a price…

A: If the issue price of a bond exceeds its face value then the bond is said to be issued at a premium.

Q: On the first day of the fiscal year, a company issues a $6,400,000, 6%, 9-year bond that pays…

A: A bond is a fixed income instrument that works like a loan for an investor and for a borrower. Bonds…

Q: On January 1, 2021, Surreal Manufacturing issued 570 bonds, each with a face value of $1,000, a…

A: 1. Period Changes during the period     Ending bond liability balances       Interest expense…

Q: On January 1, 2019, Canglon, Inc., issues 10%, 5-year bonds with a face value of $150,000 when the…

A: First of all, we have the below information-Face value of bonds= $150,000Time of the bonds= 5 years…

Q: Chowan Corporation issued $115,000 of 9% bonds dated January 1, 2019, for $111,283.65 on January 1,…

A:

Q: On January 1, 2021, Rupar Retailers purchased $130,000 of Anand Company bonds at a discount of…

A: So here in this case, When bond is purchased for less than its face value of bond then bond is known…

Q: On July 31, 2018, Snowday Corporation issued $100,000, 5%, 20-year bonds for $88,443 when the market…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: Date General Journal Debit Credit January 01, 2021

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

Q: On January 2, 2020, $100,000 of 11%, 10-year bonds were issued for $97,000. The $3,000 discount was…

A: Prepare correcting entry:

Q: On the first day of the fiscal year, a company issues a $4,900,000, 6%, 6-year bond that pays…

A: Discount on bonds issue = Face value of bonds - issue price =  $4,900,000 - $4,440,130 = $459,870

Q: March 1, 2021, a company issued a four-year, P3,000,000 face value, 11% term bonds for P3,197,877.…

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

Q: On September 1, 2021, Evansville Lumber Company issued $80 million in 20-year, 10 percent bonds…

A: Discount Amortization=Amount of bonds issued×Rate of interest×Number of monthPeriod of issuance…

Q: On the first day of the fiscal year, a company issues an $565,000, 9%, 5-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 $674,000, 7%, 10-year bond that pays…

A:

Q: On July 1, 2019, Cyclic Inc issued $1,000,000 in principal of 6% bonds due in July 2024. The bond…

A: Bond :— It is one of the source of capital which gives fixed rate of interest and maturity value at…

Q: On January 1, 2018, Nurses Credit Union (NCU) issued 8%, 20-year bonds payable with face value of…

A: Discount on Bonds Payable = Face value of Bonds - Issue price = $600000 - $552000 = $48000

Q: On July 1, 2021, Rehearse Company issued $34,000,000 of 20-year, 12% bonds to finance its…

A:

Q: On January 1, 2021, Splash City issues $360,000 of 7% bonds, due in 10 years, with interest payable…

A: CALCULATION OF INTEREST AMOUNTS :   ON 30 JUNE , 2021 : = $360,000 X 7% X 1/2  =$12,600   ON 31 DEC…

Q: On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides,…

A: Semiannual interest payment = Face value of bonds x rate of interest x 6/12 = $550,000 x 7% x 6/12 =…

Q: On the first day of the fiscal year, a company issues an $314,000, 6%, 5-year bond that pays…

A: A company issues bond having face value of $314000 at 6% , 5 year bond , paying semiannual interest…

Q: On the first day of the fiscal year, a company issues a $7,300,000, 8%, 10-year bond that pays…

A: Date Account titles and Explanation Debit Credit June 30 Interest expense ($292,000+$65,428)…

Q: On the July 1, 2021, Trials Corporation issued $17,500,000 of five-year, 12% bonds to finance its…

A: Bonds are issued to generate funds. When the contract rate of interest is more than the market rate…

Q: On July 1, 2021, Spear Co. issued 1,000 of its 10%, P1,000 bonds at 99 plus accrued interest. The…

A: Amount received from the issuance of the bonds is calculated by adding the accrued interest on the…

Q: On January 1, 2021, Surreal Manufacturing issued 570 bonds, each with a face value of $1,000, a…

A:

Q: On January 1, 2021, Splash City issues $310,000 of 9% bonds, due in 20 years, with interest payable…

A: Annual Interest payment = 9%×$310,000=$27,900 The interest is to be paid semi-annually.  So, the…

Q: Holly Industries, Inc. issued P6,000,000 of 8% debentures on May 1, 2019 and received cash totaling…

A: Solution-   Date Interest Expense 5% Cash Interest   4% Discount Amortized Carrying Value of…

Q: On October 1, 2019, Jenkins Corporation bought bonds with a face value of $200,000 for $199,175,…

A: Investment in bonds yields interest at a fixed rate of return and also it can be purchased at…

Q: On July 31, 2018, Hummbug Corporation issued $100,000, 5%, 20-year bonds for $113,678 when the…

A: >Bonds Payable are the source of finance for the companies.   >The bondholders are…