On the first day of the fiscal year, a company issues a $6,800,000, 8%, 10-year bond that pays semiannual interest of $272,000 ($6,800,000 x 8% x ½), receiving cash of $5,952,570. Journalize the entry to record the issuance of the bonds. If an amount box does not require an entry, leave it blank.
Q: On January 1, the first day of the fiscal year, a company issues an $8,600,000, 11%, five-year bond…
A: Bonds: Bonds can be defined as the debt securities issued for the purpose of raising capital for the…
Q: On the first day of the fiscal year, a company issues a $4,800,000, 9%, 6-year bond that pays…
A: Formula: Interest expense = Bond face value x Interest rate x Time periods
Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…
A: Bonds are a source of funds for a business as a liability. It is a form of loan where charges are…
Q: On the first day of the fiscal year, a company issues a $2,500,000, 12%, 7-year bond that pays…
A: >Bonds Payable are the source of finance for the companies. >The bondholders are entitle for a…
Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, five-year bond that pays…
A: Bonds Bond is a long-term financial instrument issued by a company for which the company pays…
Q: On the first day of the fiscal year, a company issues an $555,000, 8%, 5-year bond that pays…
A: Discount on bonds = Face value of the bonds - Issue price = $555,000 - $521,700 = $28,300
Q: On the first day of the fiscal year, a company issues a $2,500,000, 12%, 7-year bond that pays…
A: Discount on bonds payable = face value of bonds - Issue price = $2500000-2387327 = $112673
Q: On the first day of the fiscal year, a company issues a $970,000, 12%, 10-year bond that pays…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On the first day of the fiscal year, a company issues a $950,000, 10%, 5-year bond that pays…
A: Journal entries refer to recording/ classifying the business transactions into books of accounts…
Q: On the first day of the fiscal year, a company issues an $8,000,000, 11%, five-year bond that pays…
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
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 the first day of the fiscal year, a company issues a $5,300,000, 8%, five-year bond that pays…
A: Interest expense = Cash interest paid - premium amortized semi annually
Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…
A: Bonds are a form of loan or debt issued by the company, on which it has to make regular interest…
Q: On the first day of the fiscal year, a company issues an $4,700,000, 10%, 9-year bond that pays…
A: Premium on bonds payable = Issue price - Face value of bonds
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 the first day of the fiscal year, a company issues a $920,000, 7%, five-year bond that pays…
A: When the bonds will issue we receive cash , and we have to pay interest through out its duration…
Q: On the first day of the fiscal year, a company issues a $4,600,000, 10%, 8-year bond that pays…
A: Premium on bonds payable = Issue price - face value of bonds = 5434494-4600000 = $834,494
Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…
A: Prepare journal entry for issuance of bonds payable.
Q: On the first day of the fiscal year, a company issues an $8,000,000, 11%, five-year bond that pays…
A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…
Q: On the first day of the fiscal year, a company issues a $500,000, 8%, 10-year bond that pays…
A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…
Q: On January 1, the first day of the fiscal year, a company issues a $250,000, 10%, 10-year bond that…
A: SOLUTION- BOND- A Bond is a fixed income instrument that represent a loan made by the investor to…
Q: On the first day of the fiscal year, a company issues an $2,250,000, 12%, five-year bond that pays…
A: Premium on issue of bonds = Cash received - Par value of bonds = $2,379,360 - $2,250,000 = $129,360
Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…
A: Under straight line amortisation, the bond discount is amortised equally in each year.
Q: On the first day of the fiscal year, a company issues a $4,800,000, 7%, 8-year bond that pays…
A: When bonds are issued at Premium then with each payment part of the premium balance is Amortize with…
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: he first day of the fiscal year, a company issues a $3,500,000, 5%, 10-year bond that pays…
A: When the bonds are issued at par, the cash received is equal to the bond payable amount. When…
Q: On the first day of the fiscal year, a company issues a $888,000, 6%, 10-year bond that pays…
A:
Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $650,000, 6%, 10-year…
A: Bonds means an instrument issued by company acknowledging the debt due from company to bond holder.…
Q: On the first day of the fiscal year, a company issues a $3,000,000, 11%, five-year bond that pays…
A: Bonds: Bonds are financial debt instruments issued by the corporations to raise for the purposes of…
Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $750,000, 6%, 10-year…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: On January 1, the first day of the fiscal year, a company issues a $550,000, 8%, 10-year bond that…
A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…
Q: On January 1, the first day of the fiscal year, Designer Fabric Inc. issues a $850,000, 8%, 10-year…
A: Journal is the book of original entry in which all the financial transactions of the business are…
Q: On the first day of the fiscal year, a company issues a $2,500,000, 4%, five-year bond that pays…
A: Bonds: Bonds are the long-term promissory notes that are represented by the company while borrowing…
Q: On the first day of the fiscal year, a company issues a $1,000,000, 7%, 5-year bond that pays…
A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…
Q: On the first day of the fiscal year, a company issues a $957,000, 7%, 10-year bond that pays…
A: Working note: Premium on issue $1,004,900 – 957,000 $47,900 Semi-annual period 10×2…
Q: On the first day of the fiscal year, a company issues a $5,000,000, 10%, 4-year bond that pays…
A: Premium on Bond issue = Issue price of bonds - Face value of bonds = $5,336,638 - $5,000,000 =…
Q: On the first day of the fiscal year, a company issues a $900,000, 9%, 5-year bond that pays…
A: Given, Face value = $900,000 Issue price = $884,176
Q: On the first day of the fiscal year, a company issues a $750,000, 7%, five-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 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 $7,500,000, 8%, five-year bond that pays…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing money…
Q: On the first day of the fiscal year, a company issues a $3,500,000, 6%, five-year bond that pays…
A: Formula: Interest amount = Bond value x Time period x Interest rate
Q: On the first day of the fiscal year, a company issues an $609,000, 10%, five-year bond that pays…
A: Record the first interest payment and amortization on Discount on payable
Q: On the first day of the fiscal year, a company issues a $7,200,000, 10%, 7-year bond that pays…
A: Given the face value of bond = $7,200,000 Life of bond = 7 years Semi annual interest = 360,000 Cash…
Q: On the first day of the fiscal year, a company issues a $584,000, 11%, 10-year bond that pays…
A: Bonds are considered a financial instrument used to raise finance for the organization. It is also…
Q: On January 1, the first day of the fiscal year, a company issues a $1,800,000, 6%, five-year bond…
A: Bonds are a form of loan or debt that is being issued by the business and on which regular interest…
Q: On the first day of the fiscal year, a company issues a $980,000, 10%, 5-year bond that pays…
A: Solution: Issuance of bond payable will include discount on bond payable of = face value - issue…
Q: transactions for the current year: a. Issuance of the bonds. If an amount box does not require an…
A: Given Information: Bond Payable Issued = $1300,000 Interest = 9% Term= 20 years Cash Received =…
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…
Q: The first day of the fiscal year, a company issues a $350,000, 6%, 10-year bond that pays semiannual…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
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- Edward Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable semiannually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of discountDixon Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $480,000. Interest is payable annually. The discount is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of discount D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of discountOn 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?
- Aggies Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018, and received $540,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premiumOn January 1 a company issues a $75,000 bond that pays interest semi-annually. The first interest payment of $1,875 is paid on July 1. What is the stated annual interest rate on the bond? A. 5.00% B. 2.50% C. 1.25% D. 10.00%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?
- Lunar Corporation issued $80,000 in bonds for $87,000 on Jan. 1. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the first interest payment?Volunteer Inc. issued bonds with a $500,000 face value, 10% interest rate, and a 4-year term on July 1, 2018 and received $540,000. Interest is payable annually. The premium is amortized using the straightline method. Prepare journal entries for the following transactions. A. July 1, 2018: entry to record issuing the bonds B. June 30, 2019: entry to record payment of interest to bondholders C. June 30, 2019: entry to record amortization of premium D. June 30, 2020: entry to record payment of interest to bondholders E. June 30, 2020: entry to record amortization of premiumMedhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the sale of the bonds?