On the first day of the current fiscal year, $200,000 of 10-year, 7% bonds, with interest payable annually, were sold for $212,500. What account would be listed in the description column (2) as the credit for the $200,000 in the journal entry to record this transaction?
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A: A.1Journalize sale of bonds.
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A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
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Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 6% bonds, with interest payable…
A: Given: Value of the bond = $ 2,000,000 Bond rate = 6 % Price of the bond = $ 2,125,000
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Q: On the first day of the current fiscal year, $2,000,000 of 10-year, 6% bonds, with interest payable…
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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…
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Q: On July 1, 20Y1, Danzer Industries Inc. issued $35,400,000 of 10-year, 10% bonds at a market…
A: Hello. Since your question has multiple sub-parts, we will solve the first three sub-parts for you.…
Q: On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market…
A: Since we only answer up to 3 sub-parts, we’ll answer the first three. Please resubmit the question…
Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…
A: Introduction: Journals: Recording of a business transactions in a chronological order. Firs step in…
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- On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semi-annually. What is the journal entry to record the first payment to the bondholders?On the first day of the current fiscal year, $200,000 of 5-year, 10% bonds, with interest payable annually, were sold for $192,462. What account would be listed in the description column (1) as the debit for the $192,462 in the journal entry to record this transaction? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) 192,462 (2) 7,538 (3) 200,000 Bonds Payable Cash Discount on Bonds Payable Premium on Bonds Payable
- On August 1, Clayton Co. issued $1,300,000 of 9%, 20-year bonds, dated August 1, for $1,225,000. Interest is payable semiannually on February 1 and August 1. The fiscal year of the company is the calendar year. Journalize the following transactions for the current year: a. Issuance of the bonds. If an amount box does not require an entry, leave it blank. b. Accrual of interest on December 31 and amortization of the bond discount for the first year using the straight-line method (as separate entries). If an amount box does not require an entry, leave it blank. Do not round intermediate calculations and round your final answers to the nearest dollar.On the first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays semiannual interest of $47,500 ($950,000 × 10% × 1/2), receiving cash of $884,174. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY…On the first day of the fiscal year, a company issues a $868,000, 9%, 10-year bond that pays semiannual interest of $39,060 ($868,000 × 9% × 1/2), receiving cash of $911,400. Required: Journalize the entry to record the first interest payment and amortization of premium using the straight-line method. Refer to the Chart of Accounts for exact wording of account titles. Chart Of Accounts CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds…
- On the first day of its fiscal year, Ebert Company issued $12,500,000 of 10-year, 7% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Ebert receiving cash of $10,873,974. The company uses the interest method. Required: a. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles. 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. b. Compute the amount of the bond interest expense for the first year. c. Explain why the company was able to issue the bonds for only $10,873,974 rather than for the face amount of $12,500,000.On the first day of the fiscal year, a company issues a $950,000, 10%, five-year bond that pays semiannual interest of $47,500 ($950,000 × 10% × 1/2), receiving cash of $884,174. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTSGeneral Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable 113 Allowance for Doubtful Accounts 114 Notes Receivable 115 Interest Receivable 121 Merchandise Inventory 122 Supplies 131 Prepaid Insurance 140 Land 151 Building 152 Accumulated Depreciation-Building 153 Equipment 154 Accumulated Depreciation-Equipment LIABILITIES 210 Accounts Payable 221 Salaries Payable 231 Sales Tax Payable 241 Notes Payable 242 Interest Payable 251 Bonds Payable 252 Discount on Bonds Payable 253 Premium on Bonds Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312…On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays semiannual interest of $20,000 ($500,000 × 8% × 1/2), receiving cash of $530,000. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles.
- On January 1, the first day of its fiscal year, Ebert Company issued $35,000,000 of 10-year, 6% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 8%, resulting in Ebert Company receiving cash of $30,243,497. The company uses the interest method. Required: A. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for exact wording of account titles. 1. Sale of the bonds. 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. B. Compute the amount of the bond interest expense for the first year. C. Explain why the company was able to issue the bonds for only $30,243,497 rather than for the face amount of $35,000,000.On the first day of the fiscal year, a company issues a $1,000,000, 7%, five-year bond that pays semiannual interest of $35,000 ($1,000,000 × 7% × 1/2), receiving cash of $884,171. Required: Journalize the entry to record the issuance of the bonds. Refer to the Chart of Accounts for exact wording of account titles.On July 1, Year 1, Danzer Industries Inc. issued $24,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $19,201,440. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries: If an amount box does not require an entry, leave it blank. 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the interest method. (Round to the nearest dollar.) 3. Determine the total interest expense for Year 1.