Parilo Company acquired $183,600 of Makofske Company, 6% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $52,200 of the bonds for 96. Journalize the entries to record the following under the cost method:
Q: Tanner-UNF Corporation acquired as an investment $240 million of 5% bonds, dated July 1, on July 1,…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. If you want…
Q: Clover Company purchased P3,000,000 of bonds at par. The entity has elected the fair value model for…
A: Bonds purchase value = P3000000 Annual Interest = P120000 Fair value of bonds = P2823000
Q: Mills Corporation acquired as a long-term investment $240 million of 5% bonds, dated July 1, on July…
A: Bonds are a form of debts taken by the company. But the company who is purchasing bonds will be…
Q: Cardinal Company is an 80%- owned subsidiary of Dove Corporation. Cardinal Company issued $100,000…
A:
Q: Torres Investments acquired $260,800 of Murphy Corp., 9% bonds at their face amount on October 1,…
A: Passages for interest in bonds, interest and offer of bonds: a) Initial acqusition of Murphy corp.…
Q: Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: Blossom Corporation had the following transactions relating to debt investments: Jan. 1, 2022…
A: Interest accrued on Dec. 31, 2022 = Investment in bonds x rate of interest x no. of months/12 =…
Q: Demopoulos Company acquired $145,800 of Marimar Co., 8% bonds on May 1 at their face amount.…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: Torres Investments acquired $160,000 of Murphy Corp., 5% bonds at their face amount on October 1,…
A: (a)
Q: On October 1, 2021, POGI Company purchased 4,000 of the P1,000 face amount, 10% bonds of GANDA…
A: Bonds are defined as the units of the corporate debt, which are issued through the companies as well…
Q: emopoulos Company acquired $150,000 of Marimar Co., 6% bonds on May 1 at their face amount. Interest…
A: These are the accounting transactions that are having a monetary impact on the financial statement…
Q: Gonzalez Company acquired $183,600 of Walker Co., 4% bonds on May 1 at their face amount. Interest…
A: The journal entries are prepared to keep the record of day to day transactions of the business.
Q: On January 1, 20x1, ABC Co. acquired 10%, P1,000,000 bonds for P827,135. The bonds mature on…
A: So we will use amortization cost method
Q: Demopoulos Company acquired $151,200 of Marimar Co., 8% bonds on May 1 at their face amount.…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On June 1, 2022, GHI Co. acquired P3,000,000 bonds of Z Company at 102 plus transaction costs of…
A: Bonds are a type of long-term debt that is issued by the company to capital. The bonds come with a…
Q: Cone Company acquired long term 12% bonds, P2,000,000 face value for P2,192,000 including accrued…
A: Accrued interest from 1 Nov 2002 to January 1, 2003 = face value of the bonds xinterest arte x no.…
Q: On October 1, 2020, Kikiam Company purchased as debt investments at fair value through profit or…
A: Attributable Cost It is the cost which is associated directly with an investment or cost center.
Q: On July 1, 2021, Dreeben Company acquired P600,000 (face value), 10%, P1,000 bonds at 99 plus…
A: As Given in the question Dreeben Company purchased P 600,000 (face value) at 10%, P 1,000 bonds at…
Q: Linton Ltd. purchased 70 Horner AG 9%, 10-year, €1,000 bonds on January 1, 2022, for €70,000. The…
A: A bond is the debt instrument issued by a company to raise the fund for its operations. The company…
Q: Gonzalez Company acquired $210,000 of Walker Co., 5% bonds on May 1 at their face amount. Interest…
A: Journal Entry use to record the transactions/events occurred in a business in order to keep track of…
Q: On October 1, 2021, POGI company purchased 4000 of the P1000 face amount, 10% bonds of GANDA Company…
A: The carrying value of a bond means the net amount between the bond's face value plus any…
Q: School Perfume Company issued $300,000 of 10 percent bonds on January 1, 20X2, at 110. The bonds…
A: Consolidation means the merger of at least two organizations where one organizations acquire share…
Q: Keyser Company acquired $3,514,000 face value, 9% bonds as an available-for-sale investment on…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: milar risk and maturity. Tanner-UNF paid $200 million for the bonds. The company will receive…
A: 1&2 Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1,…
Q: . & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and…
A:
Q: Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on…
A: Date Accounts Debit Credit January 2, 2022 Cash 200,000,000 Discount on Bonds 39,500,000…
Q: Bula Investments acquired $260,400 of Effenstein Corp., 10% bonds at their face amount on October 1,…
A: Journal- Journal is that the primary book of original entry, because the transactions and events are…
Q: Demopoulos Company acquired $150,000 of Marimar Co., 6% bonds on May 1 at their face amount.…
A: Introduction:- Journal entry means as follows:- Journal entry is used to record business…
Q: Tanner-UNF Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on…
A: 1. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021.
Q: On 1 January 2020 Harleen Inc purchased 1,275 ordinary shares in Shresta Inc , paying £5,300 by…
A: Step 1 Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for…
Q: What was the effect of W's purchase of XYZ's bond on the retained earnings amount reported in XYZ's…
A: The effect of W's purchase of XYZ's bond on the retained earnings amount reported in XYZ's March 31,…
Q: Tanner-UNF Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on…
A: working note: 1. calculation of decrease in the bond price. fair value of the bond as on January 2…
Q: Torres Investments acquired $233,600 of Murphy Corp., 6% bonds at their face amount on October 1,…
A: The answer is as fallows
Q: Darcy Company is an 80%-owned subsidiary of Kraco Industries. Darcy Company issued 10-year, 8% bonds…
A:
Q: Mills Corporation acquired as a long-term investment $300 million of 7% bonds, dated July 1, on July…
A: Since you have posted question with multiple sub-parts , we will do the first three sub-parts for…
Q: Spice Company issued $200,000 of 10 percent first mortgage bonds on January 1, 20X4, at 105. The…
A: Bonds are said to be issued at premium when they are issued at a amount higher than the face value.…
Q: Linco Industries is a 90%- owned subsidiary of Sharp Incorporated. On January 1, 2015, Linco issued…
A: Prepare eliminations and adjustments as explained: Result:
Q: Gonzalez Company acquired $200,000 of Walker Co., 6% bonds on May 1 at their face amount. Interest…
A: Bond investment: Bond investments are debt securities which pay a fixed interest revenue to the…
Q: Gonzalez Company acquired $177,000 of Walker Co., 8% bonds on May 1 at their face amount. Interest…
A: Bond investment: Bond investments are debt securities which pay a fixed interest revenue to the…
Q: Landis Co. purchased €500,000 of 8%, 5-year bonds from Ritter, Inc. on January 1, 2021, with…
A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…
Q: n October 1, Dennis Company purchase P200,000 face value 12% bonds for 98% plus accrued interest and…
A: Bond: It is the certificate of income investment as a bond or debentures at a fixed rate of interest…
Q: Suspect Company issued $1,110,000 of 8 percent first mortgage bonds on January 1, 20X1, at 104. The…
A: working notes: Premium on Bonds Payable [($740,000x 1.04) - $740,000] x 15/20 =$22,200 Interest…
Q: On January 1, Year 1, Narito Company purchased a P100,000 face value 5-year bond of Wolf Corporation…
A: Bonds receivable: It is an investment in bonds of an organization which pays a fixed rate of…
Q: Ruben Company purchased $100,000 of Evans Company bonds at 100. Ruben later sold the bonds for…
A: Accrued interest refers to the amount of interest earned, but not yet received.
Q: Mills Corporation acquired as a long-term investment $240 million of 6% bonds, dated July 1, on July…
A: Hey, since there are multiple requirements posted, we will answer first three requirements. If you…
Q: Highlight, Inc., owns all outstanding stock of Kiort Corporation. The two companies report the…
A:
Q: On September 1, Year 2, the 401 Company acquired P1,000,000 face value, 12% bonds of Key Company at…
A: The bonds are the financial instruments that are used for investment purpose by the company.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267Entries for Investment in Bonds, Interest, and Sale of Bonds Parilo Company acquired $204,000 of Makofske Company, 6% bonds on May 1, 20Y5, at their face amount. Interest is paid semiannually on May 1 and November 1. On November 1, 20Y5, Parilo sold $44,400 of the bonds for 96. Journalize the entries to record the following under the cost method: If an amount box does not require an entry, leave it blank. Questions are attached with image Needing answers for questions: B C DOn January 2, Larkspur Company purchased 50, 10%, $1,040 Mikel Company bonds for $52,000 cash. Interest is payable annually on January 1 Journalize the entries to record the purchase of the bonds and the accrual of the annual interest on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries) Date Account Titles and Explanation Debit Credit
- On May 1, Cedar Inc. purchases $150,000 of 10-year, Knox Corporation 8% bonds dated March 1 at 100 plus accrued interest. Required: Journalize the entry to record the semiannual receipt of interest on March 1, Year 2. Refer to the Chart of Accounts for exact wording of account titles.Adele Corp., a wholesaler of music equipment, issued $22,000,000 of 20-year, 7% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year. Journalize the entries to record the folowwing selected transactions.Use this information for Pierce Company to answer the question that follow. On May 1, Pierce Company purchased $60,000 of Stanton Company's 12% bonds at 100 plus accrued interest of $2,400. On June 30, Pierce received its first semiannual interest. On February 1, Pierce sold $50,000 of the bonds at 103 plus accrued interest. What are the total proceeds from the February 1 sale? Oa. $51,500 Ob. $50,000 Oc. $52,400 Od. $52,000 ?
- Ruben Company purchased $100,000 of Evans Company bonds at 100 plus $1,500 in accrued interest. The bond interest rate is 8% and interest is paid semiannually. The journal entry for the purchase would be. Oa. debit Investments-Evans Company Bonds, $100,000; credit Interest Revenue, $1,500, and Cash, $98,500 Ob. debit Investments-Evans Company Bonds, $100,000, and Interest Receivable $1,500; credit Cash, $101,500 Oc. debit Investments-Evans Company Bonds, $101,500; credit Cash, $101,500 Od. debit Investments-Evans Company Bonds, $100,000; credit Cash, $100,000Shunda Corporation wholesales parts to appliance manufacturers. On January 1, Shunda issued $30,000,000 of five-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $32,433,150. Interest is payable semiannually. Shunda’s fiscal year begins on January 1. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Cash fill in the blank f63d02049fd306d_2 fill in the blank f63d02049fd306d_3 Premium on Bonds Payable fill in the blank f63d02049fd306d_5 fill in the blank f63d02049fd306d_6 Bonds Payable fill in the blank f63d02049fd306d_8 fill in the blank f63d02049fd306d_9 2. First semiannual interest payment, including amortization of premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Interest Expense fill in the blank…May 1 and November 1. On November 1, Demopoulos Company sold $55,800 of the bonds for 98. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank. a. The initial acquisition of the bonds on May 1. May 1 b. The semiannual interest received on November 1. Nov. 1 c. The sale of the bonds on November 1. Nov. 1 d. The accrual of $1,316 interest on December 31. Dec. 31
- 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.Carla Vista Company purchased 70 Rinehart Company 5%, 10-year, $1,050 bonds on January 1, 2020, for $73,500. The bonds pay interest annually on January 1. On January 1, 2021, after receipt of interest, Carla Vista Company sold 40 of the bonds for $40,425.Prepare the journal entries to record the transactions described above. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 1, 2020Dec. 31, 2020Jan. 1, 2021 Jan. 1, 2020Dec. 31, 2020Jan. 1, 2021 Jan. 1, 2020Dec. 31, 2020Jan. 1, 2021 (To…Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, Year 1, Smiley issued $20,000,000 of five-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $20,811,010. Interest is payable semiannually on April 1 and October 1. Journalize the entries to record the following: Required: a. Journalize the entries to record the following. Refer to the Chart of Accounts for exact wording of account titles. 1. Issuance of bonds on April 1, Year 1. 2. First interest payment on October 1, Year 1, and amortization of bond premium for six months, using the straight-line method. (Round to the nearest dollar.) b. Explain why the company was able to issue the bonds for $20,811,010 rather than for the face amount of $20,000,000.