On January 1, Year 1, Hanover Corporation issued bonds with a $42,750 face value, a stated...
On January 1, Year 1, Hanover Corporation issued bonds with a $42,750 face value, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were issued at 97. Hanover uses the straight-line method to amortize bond discounts and premiums. Interest is payable in cash on December 31 each year. The journal entry used to record the issuance of the bond and the receipt of cash would be: (Round your answer to the nearest whole dollar amount.)
Homework Answers
| ACCOUNT | DEBIT | CREDIT |
|---|---|---|
| Cash | 41,468 | |
| Discount on bonds payable | 1,283 | |
| Bonds payable | 42,750 |
Comment if you face any issues
Add Answer to:
On January 1, Year 1, Hanover Corporation issued bonds with a
$42,750 face value, a stated...
On January 1, Year 1, Weller Company issued bonds with a $230,000 face value, a stated...
On January 1, Year 1, Weller
Company issued bonds with a $230,000 face value, a stated rate of
interest of 10.00%, and a 10-year term to maturity. Weller uses the
effective interest method to amortize bond discounts and premiums.
The market rate of interest on the date of issuance was 8.00%.
Interest is paid annually on December 31.
QUESTION 9 During Year 1, El Paso Company had the following changes in account balances The Accumulated Depreciation account had a beginning...
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, Year 1, Acorn Financial Corp. issued 825 convertible bonds. Each $1,000 face value...
On January 1, Year 1, Acorn Financial Corp. issued 825 convertible bonds. Each $1,000 face value bond is convertible into five shares of common stock. The bonds have a 10-year term to maturity and pay interest semiannually. Acorn's common stock has a par value of $20.00 per share. The bonds have a stated interest rate of 4% and pay interest semiannually. The convertible bonds were sold for $875,500. Bond issue costs of $50,000 will be subtracted from the bond sale...
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...
Grocery Corporation received $300,409 for 11.50 percent bonds issued on January 1, 2018, at a market...
Grocery Corporation received $300,409 for 11.50 percent bonds issued on January 1, 2018, at a market interest rate of 8.50 percent. The bonds had a total face value of $251,000, 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, 2018, Parker Company issued bonds with a face value of $53,000, a stated...
On January 1, 2018, Parker Company issued bonds with a face value of $53,000, a stated rate of interest of 11 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 13 percent at the time the bonds were issued. The bonds sold for $49,272. Parker used the effective interest rate method to amortize the bond discount. Required: a. Prepare an amortization table. b. At what...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
On January 1, Year 1, the Diamond Association issued bonds with a face value of $231,000,...
On January 1, Year 1, the Diamond Association issued bonds with a face value of $231,000, a stated rate of interest of 12 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 14 percent at the time the bonds were issued. The bonds sold for $206,902. Diamond used the effective interest rate method to amortize the bond discount. Required a. Determine the amount of the...
Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of...
Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of $92,000 and pay interest every January 1 and July 1. The bonds were sold for $110,962 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of Oa. $3,680 Ob. $4,600 Oc. $5,548 Od. $4,438
On January 1, Year 1, Young Company issued bonds with a face value of $115,000, a stated rate of interest of 17 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 16 percent
On January 1, Year 1, Young Company issued bonds with a face value of $115,000, a stated rate of interest of 17 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 16 percent at the time the bonds were issued. The bonds sold for $120,558. Young used the effective interest rate method to amortize the bond premium. Requireda. Determine the amount of the premium on...
On January 1, Year 1, Weller
Company issued bonds with a $230,000 face value, a stated rate of
interest of 10.00%, and a 10-year term to maturity. Weller uses the
effective interest method to amortize bond discounts and premiums.
The market rate of interest on the date of issuance was 8.00%.
Interest is paid annually on December 31.
QUESTION 9 During Year 1, El Paso Company had the following changes in account balances The Accumulated Depreciation account had a beginning...
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...
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, 2018, Parker Company issued bonds with a face value of $53,000, a stated rate of interest of 11 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 13 percent at the time the bonds were issued. The bonds sold for $49,272. Parker used the effective interest rate method to amortize the bond discount. Required: a. Prepare an amortization table. b. At what...
On January 1, 2012, Scott Corporation issued 10-year $100,000 bonds with a 6% stated rate of interest at 103. Scott Corporation pays the interest annually on December 31 and uses the straight-line amortization method. Which of the following is the correct general journal entry to record the interest expense for 2012? Debit Credit a. Interest Expense 6,000 Premium on Bonds Payable 300 Cash 5,700 b. Interest Expense 6,000 Cash 6,000 c. Interest Expense 6.300 Premium on Bonds Payable 300 Cash...
On January 1, Year 1, the Diamond Association issued bonds with a face value of $231,000, a stated rate of interest of 12 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 14 percent at the time the bonds were issued. The bonds sold for $206,902. Diamond used the effective interest rate method to amortize the bond discount. Required a. Determine the amount of the...
Designer Company issued 10-year bonds on January 1. The 10% bonds have a face value of $92,000 and pay interest every January 1 and July 1. The bonds were sold for $110,962 based on the market interest rate of 8%. Designer uses the effective interest method to amortize bond discounts and premiums. On July 1 of the first year, Designer should record an interest expense (round to the nearest dollar) of Oa. $3,680 Ob. $4,600 Oc. $5,548 Od. $4,438
Most questions answered within 3 hours.
-
The only quantities of good 1 that Barbara can buy are 1 unit or
zero units....
asked 8 minutes ago -
c. Node Admittance matrix and its use in different calculations
of power transmission system. Display the...
asked 17 minutes ago -
6. Suppose that the Bank of Canada conducts an open market
purchase of $2000 from a...
asked 10 minutes ago -
Try to get the code down to less than 40 lines. (PYTHON)
import random
fave_number =...
asked 16 minutes ago -
A Chi-square distribution with 14 degrees of freedom is a
correct model for
Question 8 options:...
asked 14 minutes ago -
A) Suppose U=X∙Y3. Find X* and Y*.
B) Suppose U=X3∙Y. Find X* and Y*.
C) Suppose...
asked 19 minutes ago -
2.
Regression analysis was applied between sales (in $1,000) and
advertising (in $100), and the following...
asked 24 minutes ago -
I just took a final for chemistry 2. There were alot of
questions on cell potential....
asked 56 minutes ago -
A spherical weather balloon is filled with hydrogen until its
radius is 2.30 m. Its total...
asked 22 minutes ago -
Calculate the entropy change for the hypothetical process in
which 0.5 g of ice at 0°C...
asked 44 minutes ago -
When an airplane is flying 200 mph at 5000-ft altitude in a
standard atmosphere, the air...
asked 32 minutes ago -
Consider the economy of Freeland, whose overall actual price
index and actual output are P and...
asked 45 minutes ago