Homework Answers
1) Amount received in Issuance = $650000
2) Journal entry
| Date | General journal | Debit | Credit |
| Jan 01 | Cash | 650000 | |
| Bonds payable | 650000 | ||
| (To record bond issue) |
| Date | General journal | Debit | Credit |
| Dec 31 | Interest expense (650000*12%) | 78000 | |
| Cash | 78000 | ||
| (To record interest paid) |
Add Answer to:
On January 1, Applied Technologies Corporation (ATC) issued $650,000 in bonds that mature in 10 years....
On January 1, Applied Technologies Corporation (ATC) issued $530,000 in bonds that mature in 10 years....
On January 1, Applied Technologies Corporation (ATC) issued $530,000 in bonds that mature in 10 years. The bonds have a stated interest rate of 10 percent. When the bonds were issued, the market interest rate was 10 percent. The bonds pay interest once per year on December 31. Required: 1. Determine the price at which the bonds were issued and the amount that ATC received at issuance. 2. & 3. Prepare the required journal entries to record the bond issuance...
E10-7 Preparing Journal Entries to Record Issuance of Bonds and Payment of Interest [LO 10-3] On...
E10-7 Preparing Journal Entries to Record Issuance of Bonds and Payment of Interest [LO 10-3] On January 1, Applied Technologies Corporation (ATC) Issued $540,000 in bonds that mature in 10 years. The bonds have a stated Interest rate of 11 percent. When the bonds were issued, the market Interest rate was 11 percent. The bonds pay interest once per year on December 31 Book Required: 1. Determine the price at which the bonds were issued and the amount that ATC...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $275,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium Required 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
On January 1, Boston Enterprises Issues bonds that have a $1,850,000 par value, mature in 20...
On January 1, Boston Enterprises Issues bonds that have a $1,850,000 par value, mature in 20 years, and pay 7% interest semlannually on June 30 and December 31. The bonds are sold at par 1. How much Interest will Boston pay (In cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the Issuance of bonds on January 1. (b) the first Interest payment on June 30, and (c) the second interest payment on December 31...
Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market...
Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market interest rate of 5.50 percent. The bonds had a total face value of $258,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
On January 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20...
On January 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20 years, and pay 10% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1: (b) the first interest payment on June 30; and (c) the second interest payment on December 31....
On May 1, 2021, Green Corporation issued $1,600,000 of 12% bonds, dated January 1, 2021, for...
On May 1, 2021, Green Corporation issued $1,600,000 of 12% bonds, dated January 1, 2021, for $1,408,000 plus accrued interest. The market rate of interest was 13%. The bonds pay interest semiannually on June 30 and December 31 Green's fiscal year ends on December 31 each year. Required: 1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. 2. Prepare the journal entry for the issuance of the bonds. Complete this question...
Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on...
Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,641,812. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table...
On January 1, 2021, Madison Products issued $41.9 million of 8%, 10-year convertible bonds at a...
On January 1, 2021, Madison Products issued $41.9 million of 8%, 10-year convertible bonds at a net price of $42.89 million. Madison recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Madison's no par common stock. Madison records interest by the straight-line method. On June 1, 2023, Madison notified bondholders of its intent to call the...
Dunphy Company issued $10,000 of 6%, 10-year bonds at par value on January 1. Interest is...
Dunphy Company issued $10,000 of 6%, 10-year bonds at par value on January 1. Interest is paid semiannually each June 30 and December 31. Prepare the entries for (a) the issuance of the bonds and (b) the first interest payment on June 30. View transaction list Journal entry worksheet Record the issuance of the bonds. Note: Enter debits before credits Date Jan 01 General Journal Debit Credit Record entry Clear entry View general journal < Prev 1 of 17 !!!...
E10-7 Preparing Journal Entries to Record Issuance of Bonds and Payment of Interest [LO 10-3] On January 1, Applied Technologies Corporation (ATC) Issued $540,000 in bonds that mature in 10 years. The bonds have a stated Interest rate of 11 percent. When the bonds were issued, the market Interest rate was 11 percent. The bonds pay interest once per year on December 31 Book Required: 1. Determine the price at which the bonds were issued and the amount that ATC...
Grocery Corporation received $330,361 for 11.00 percent bonds issued on January 1, 2018, at a market interest rate of 8.00 percent. The bonds had a total face value of $275,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium Required 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
On January 1, Boston Enterprises Issues bonds that have a $1,850,000 par value, mature in 20 years, and pay 7% interest semlannually on June 30 and December 31. The bonds are sold at par 1. How much Interest will Boston pay (In cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the Issuance of bonds on January 1. (b) the first Interest payment on June 30, and (c) the second interest payment on December 31...
Grocery Corporation received $316,333 for 8.50 percent bonds issued on January 1, 2018, at a market interest rate of 5.50 percent. The bonds had a total face value of $258,000, stated that interest would be paid each December 31, and stated that they mature in 10 years. Assume Grocery Corporation uses the effective-interest method to amortize the bond premium. Required: 1. & 2. Prepare the required journal entries to record the bond issuance and the first interest payment on December...
On January 1, Boston Enterprises issues bonds that have a $1,650,000 par value, mature in 20 years, and pay 10% interest semiannually on June 30 and December 31. The bonds are sold at par. 1. How much interest will Boston pay (in cash) to the bondholders every six months? 2. Prepare journal entries to record (a) the issuance of bonds on January 1: (b) the first interest payment on June 30; and (c) the second interest payment on December 31....
On May 1, 2021, Green Corporation issued $1,600,000 of 12% bonds, dated January 1, 2021, for $1,408,000 plus accrued interest. The market rate of interest was 13%. The bonds pay interest semiannually on June 30 and December 31 Green's fiscal year ends on December 31 each year. Required: 1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale. 2. Prepare the journal entry for the issuance of the bonds. Complete this question...
Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,641,812. Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2(c) For each semiannual period, complete the table...
On January 1, 2021, Madison Products issued $41.9 million of 8%, 10-year convertible bonds at a net price of $42.89 million. Madison recently issued similar, but nonconvertible, bonds at 99 (that is, 99% of face amount). The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 30 shares of Madison's no par common stock. Madison records interest by the straight-line method. On June 1, 2023, Madison notified bondholders of its intent to call the...
Dunphy Company issued $10,000 of 6%, 10-year bonds at par value on January 1. Interest is paid semiannually each June 30 and December 31. Prepare the entries for (a) the issuance of the bonds and (b) the first interest payment on June 30. View transaction list Journal entry worksheet Record the issuance of the bonds. Note: Enter debits before credits Date Jan 01 General Journal Debit Credit Record entry Clear entry View general journal < Prev 1 of 17 !!!...
Most questions answered within 3 hours.
-
What is the advantage of considering each of the
following in calculating the work done by...
asked 2 minutes ago -
Write a stored function that takes a number as its input and
returns that number as...
asked 1 minute ago -
In the laboratory, a general chemistry student measured the pH
of a 0.527 M aqueous solution...
asked 7 minutes ago -
Water can decompose into H2 and O2 via electrolysis. How many
moles of H2 could theoretically...
asked 16 minutes ago -
How many moles of oxygen would be consumed during the aerobic
oxidation of one mole of...
asked 32 minutes ago -
Choose an enzyme and tell its function and what substrate it
works on.
asked 30 minutes ago -
You are helping the CFO of a manufacturing company assess
whether the firm should embark on...
asked 26 minutes ago -
a) Given these data for the reaction , write the rate-law
expression.
(Use k for the...
asked 31 minutes ago -
Compare two countries how the culture
of those country enhances or impedes your understanding of the...
asked 32 minutes ago -
Identify the incorrect statement.
A. An increase in mol does not increase the average force of...
asked 34 minutes ago -
In broadcast authentication, a senderaims to send
oneauthentication code for multiple receivers to verify. Explain
why...
asked 34 minutes ago -
A student studying for a vocabulary test knows the meanings of
16 words from a list...
asked 1 hour ago