Question

Five thousand bonds with a face value of $1000 each, are sold at 86. The entry...

Five thousand bonds with a face value of $1000 each, are sold at 86. The entry to record the issuance is

Cash 4300000
Discount on Bonds Payable 700000
     Bonds Payable 5000000
Cash 4300000
     Premium on Bonds Payable 700000
     Bonds Payable 5000000
Cash 4300000
     Bonds Payable 4300000
Cash 5000000
     Discount on Bonds Payable 700000
     Bonds Payable 4300000
0 0
Add a comment Improve this question Transcribed image text
Answer #1

Date Auswert particulars LF Debit credit cash ale or $4300,000 Discount on bonds payable Alcoy $700000 (5000 bonds Ⓡ$ 1800100

Add a comment
Know the answer?
Add Answer to:
Five thousand bonds with a face value of $1000 each, are sold at 86. The entry...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • . Calculate how much Markway is able to borrow if each bond is sold at a...

    . Calculate how much Markway is able to borrow if each bond is sold at a premium of $30. $ 2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10. $ 3. Calculate how much Markway is able to borrow if each bond is sold at 92% of par. $ 4. Calculate how much Markway is able to borrow if each bond is sold at 103% of par. $ Feedback 1...

  • On January 1 of this year, Victor Corporation sold bonds with a face value of $1,510,000...

    On January 1 of this year, Victor Corporation sold bonds with a face value of $1,510,000 and a coupon rate of 9 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the...

  • On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000...

    On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the...

  • On January​ 31, 018​, Driftwood ​Logistics, Inc., issued five​-year, 2​% bonds payable with a face value...

    On January​ 31, 018​, Driftwood ​Logistics, Inc., issued five​-year, 2​% bonds payable with a face value of $11,000,000. The bonds were issued at 94 and pay interest on January 31 and July 31. Driftwood Logistics amortizes bond discounts using the​ straight-line method.Read the requirement a. Record the issuance of the bond payable on January​ 31, 2018. ​ (Record debits​ first, then credits. Exclude explanations from any journal​ entries.) Journal Entry Date Accounts Debit Credit Jan 31 Cash Discount on Bonds...

  • On October 1, 20XX, Bartley Corporation issued 5%, 10-year bonds with a face value of $500,000...

    On October 1, 20XX, Bartley Corporation issued 5%, 10-year bonds with a face value of $500,000 at $520,000. The entry to record the issuance of the bonds would include a credit of $20,000 to Premium on Bonds Payable credit of $520,000 to Bonds Payable debit of $20,000 to Discount on Bonds Payable credit of $480,000 to Bonds Payable

  • On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000...

    On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000 at 104%. On October 1 and April 1, interest is paid. Any premiums or discounts are amortized on a straight-line basis. Which of the following will you include in your entry to record the issuance of the bonds? On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000 at 104%. On October 1 and April 1, interest is...

  • Vasily Inc. sold 20-year bonds on January 1, 2016. The face value of the bonds was...

    Vasily Inc. sold 20-year bonds on January 1, 2016. The face value of the bonds was $100,000, and they carry a 9% stated rate of interest, which is paid on December 31 of every year. Vasily received $94,950 in return for the issuance of the bonds when the market rate was 10%. Any premium or discount is amortized using the effective interest method. Required: 1. Prepare the journal entry to record the sale of the bonds on January 1, 2016....

  • Exercise 9-48 (Algorithmic) Bond Premium and Discount Markway Inc. is contemplating selling bonds. The issue is...

    Exercise 9-48 (Algorithmic) Bond Premium and Discount Markway Inc. is contemplating selling bonds. The issue is to be composed of 750 bonds, each with a face amount of $800. 1. Calculate how much Markway is able to borrow if each bond is sold at a premium of $30. $    2. Calculate how much Markway is able to borrow if each bond is sold at a discount of $10. $    3. Calculate how much Markway is able to borrow if each...

  • On January 1 of this year, Victor Corporation sold bonds with a face value of $1,450,000 and a coupon rate of/ percent....

    On January 1 of this year, Victor Corporation sold bonds with a face value of $1,450,000 and a coupon rate of/ percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables...

  • Serotta Corporation is planning to issue bonds with a face value of $340,000 and a coupon rate of...

    Serotta Corporation is planning to issue bonds with a face value of $340,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 4 percent (FV of $1, PV of S1,...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT