Keys Inc. Issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal entry to record this transaction includes
Q: On the first day of the current fiscal year, $200,000 of 5-year, 10% bonds, with interest payable…
A: Discount on Bonds payable = Face value of bonds - issue price of bonds = $200,000 - $192,462 =…
Q: TryNErr Corporation issued $1,000,000 of ten-year, 10% bonds payable. The market rate of interest at…
A: A bond refers to the instrument which is issued by the government to borrow money when needed. It is…
Q: Medhurst Corporation issued $90,000 in bonds for $87,000. The bonds had a stated rate of 8% and pay…
A: Bonds are a form of debt or loan taken by the company and interest needs to be paid on bonds on…
Q: Hoover Corp., a wholesaler of music equipment, issued $17,850,000 of 25-year, 10% callable bonds on…
A: Answer - The journal entry for bond issuance varies depends on the type of issuance; whether it…
Q: Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay…
A: Formula used for calculating discount on bonds payable: Discount on bonds payable = issued price -…
Q: Moss Co. issued $840,000 of five-year, 11% bonds, with interest payable semiannually, at a market…
A: A bond is a financial security that is sold by business firms to raise borrowing funds. It is issued…
Q: On January 1, Parson Freight Company issues 7.0%, 10-year bonds with a par value of $3,500,000. The…
A: Bonds are a form of loan or debt that is being issued by the company, on which regular interest…
Q: O'Shea Inc. Issued bonds at a face value of $100,000, a rate of 6%, and a 5-year term for $98,000.…
A: Amortization of Bonds discount or premium: The Bonds can be issued at a discount or premium. The…
Q: Moss Co. issued $450,000 of four-year, 11% bonds, with interest payable semiannually, at a market…
A: Present value of bonds payable = Present value of interest payments + Present value of principal n…
Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $910 for $94,800. The bonds…
A: Bonds payable (at par) = 100 bonds * $910= $ 91000 Bond issued value= $ 94800 Premium on bond issue=…
Q: On January 1, 2018, Davie Services issued $20,000 of 8% bonds that mature in five years. They were…
A: Premium on issue of bonds = Isue value - face value of bonds = $20,750 - $20,000 = $750
Q: what will be the issuance price (approximate) of the bonds?
A: Interest payable on the bond for every 6 months = 9000 (300000*6%*6/12) Calculation of present value…
Q: If Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to hold…
A: Given is: Intervale Railway invests $100,000 in 5% bonds at face value that the company intends to…
Q: On June 1 of the current year, Cross Corp. issued $300,000 of 8% bonds payable at par with interest…
A: Bonds are the form of loan or debt issued by the company, on which regular interest needs to be paid…
Q: Rushton Corp., a wholesaler of music equipment, issued $3,650,000 of 20-year, 14% callable bonds on…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: Rushton Corp., a wholesaler of music equipment, issued $17,800,000 of 15-year, 12% callable bonds on…
A: Interest expense on sept 1, 20Y1 = face value of bonds x rate of interest x no. of months/12 =…
Q: On January 1, a company issued a 5-year $100,000 bond at 6%. Interest payments on the bond of $6,000…
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: Moss Co. issued $101,000 of five-year, 12% bonds, with interest payable semiannually, at a market…
A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…
Q: Morgan Company issues 10%, 20-year bonds with a par value of $760,000 that pay interest…
A: Answer: Option 3.
Q: much should be recorded for Discount (or Premium) on Bonds Payable? (Enter an amount. Please do not…
A: Journal: Journal is considered as a book of original entry because all the transactions that have…
Q: Morgan company issues 9%, 20-year bonds with a par value of 780,000 that pay interest semiannually .…
A: Bonds: Bonds are long-term promissory notes that are represented by a company while borrowing…
Q: On January 1, 20x1, Silent Co. issued 1,000 bonds with face amount of P4,000 each for a total of…
A: Interest expense for 20x1 = ( issue value of bonds - transaction costs )x effective interest rate…
Q: Moss Co. issued $101,000 of five-year, 11% bonds with interest payable semiannually, at a market…
A: Concept: The present value (PV) is defined as the current value of the future sum of money or the…
Q: Evie Inc. issued 53 bonds with a $1,400 face value, a five-year life, and a stated annual coupon of…
A: Number of bonds issued = 53 Annual Coupon of each bond ($990 * 8%) = $79.20
Q: On November 1, 20x4, VICO Corp. issued P800,000 of its 10-year, 8% term bonds dated October 1, 20x4.…
A: Annual Interest=Issue price×Stated rate=P 800,000×8%=P 64,000
Q: Eli Inc. issued $100,000 of 8% annual, 5-year bonds for $103,000. What is the total amount of…
A: Annual interest = Face value of the bonds at the time of issue x Annual interest rate…
Q: On November 1, 2006, Mason Company issued P8,000,000 of its 10-year, 8% term bonds dated October 1,…
A: Bonds are a form of liability being issued by the business, which needs to be paid out by the…
Q: Evie Inc. issued 48 bonds with a $1,100 face value, a five-year life, and a stated annual coupon of…
A: Total Interest expense over the life of the bonds = Coupon payments over the life of the bonds +…
Q: Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 2% when the…
A: Face value = $ 100,000 Sale value ratio = 102
Q: Bonds with a face value of $1,000 were issued for $1,080. Which ONE of the following would be…
A: As posted multiple independent questions we are answering only first question kindly repost the…
Q: A company issued 8%, 15-year bonds with a par value of $470,000 that pay Interest semiannually. The…
A: Bonds: In finance, bonds are a sort of safety net utilized in shared assets and private…
Q: The company has outstanding bonds payable with a total face value of $100,000. On July 1, the…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step…
Q: iaz Company issued $107,000 face value of bonds on January 1, Year 1. The bonds had a 7 percent…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $920 for $95,800. The bonds…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $860 for $89,900. The bonds…
A: Journal entry is a primary entry that records the financial transactions initially.
Q: Eli Inc. issued $100,000 of 10% annual, 5-year bonds for $103,200. What is the total amount of…
A: Premium on Bonds issue = Issue value - Face value of bonds = $103,200 - $100,000 = $3,200
Q: On June 30, Jamison Company issued $2,500,000 of 10-year, 9% bonds, dated June 30, for $2,580,000.…
A: Bonds payable are financial instruments. It representing a company’s commitment to pay back a…
Q: Moss Co. issued $101,000 of four-year, 12% bonds with interest payable semiannually, at a market…
A: Present value of the bonds payable = Present value of principal + Present value of interest payments…
Q: Debond Corp. issues £1,000,000 worth of fi ve-year bonds, dated 1 January 2010, whenthe market…
A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…
Q: On January 1, Parson Freight Company issues 8.5%, 10-year bonds with a par value of $2,300,000. The…
A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.
Q: Luke Corp. issued $2,000,000 of 20-year, 9% callable bonds on July 1, Year 1, with interest payable…
A: From July 1 to December 31 = 6 months Interest expense has been accrued for 6 months in the month of…
Q: Moss Co. issued $42,000,000 of five-year, 11% bonds, with interest payable semiannually, at a market…
A: Present Value: The value of today’s amount expected to be paid or received in the future at a…
Q: Hsu Company issued $102,.000 of 10% bonds on January 1 at face value. The bonds pay interest…
A: Given in question: Face value of bond is $102,000 Coupon rate is 10% Since the bonds are issued at…
Q: Evie Inc. issued 52 bonds with a $1,200 face value, a five year life, and a stated annual coupon of…
A: Total amount of interest expense over the life of the bond is as under-
Q: A company issued 8%, 15-year bonds with a par value of $470,000 that pay interest semiannually. The…
A: A bond is a fixed-income security that represents an investor's obligation to a borrower (typically…
Q: On Jan. 1, Year 1, Foxcroft Inc. issued 120 bonds with a face value of $1,080 for $132,600. The…
A: Bonds are issued to fulfil the requirement of the capital of the company. It represents the…
Q: Evie Inc. issued 49 bonds with a $1,400 face value, a five-year life, and a stated annual coupon of…
A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…
Keys Inc. Issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Willoughby Inc. issued 100 bonds with a face value of $1,000 and a stated rate of 4% and received $105,000. What is the journal entry to record the sale of the bonds?Allante Corporate issued 50 bonds with a face value of $1,000 and a stated rate of 4% and received $45,000. What is the journal entry to record the sale of the bonds?Medhurst 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?
- Huang Inc. issued 100 bonds with a face value of $1,000 and a 5-year term at $960 each. The journal entry to record this transaction includes ________. A. a debit to Bonds Payable for $100,000 B. a debit to Discount on Bonds Payable for $4,000 C. a credit to cash for $96,000 D. a credit to Discount on Bonds Payable for $4,000On 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?Roo Incorporated issued 50 bonds with a face value of $1,000 and a stated rate of 6% when the market rate was 6%. What is the journal entry to record the sale 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 Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 each for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. Premium on Bonds Payable Interest Income Discount on Bonds Payable Interest Expense Cash Bonds Payable What is the journal entry to record the issuance of the bonds? What is the journal entry to record the first interest payment?Blue Spruce Corp. issues $310,000 of bonds for $325,500. Prepare the journal entry to record the issuance of the bonds.
- Medhurst Corporation issued $86,100 in bonds for $83,000. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the sale of the bonds? If an amount box does not require an entry, leave it blank.On January 1, Pina Inc. issued $101050000, 9% bonds at 103. The journal entry to record the issuance of the bonds will include O a credit to Bonds Payable for $104081500. a credit to Interest Expense for $3031500. O a credit to Premium on Bonds Payable for $3031500. O a debit to Cash for $101050000.Medhurst Corporation issued $86,000 in bonds for $83,400. The bonds had a stated rate of 8% and pay interest quarterly. What is the journal entry to record the first interest payment? If an amount box does not require an entry, leave it blank.