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