Question

In: Accounting

C issued a five percent five year $10,000,000 of bonds on June 1, 2019, interest payable...

C issued a five percent five year $10,000,000 of bonds on June 1, 2019, interest payable each May 31. The market rate of interest was six percent. There were attorney and underwriter’s fees of $110,000 and C incurred additional salary costs of $35,000 relating to the bond issuance. Record the entries for June 1, 2019, December 31, 2019, and May 31, 2020.

6/1/2019                Cash                            9,890,000

                              Bond Issuance costs    110,000

                              Bonds Payable                                    10,000,000

                              Salary Expense            35,000

                              Cash                                                    35,000

Solutions

Expert Solution

ekkarill92 answered 4 months ago
Next > < Previous

Related Solutions

Zapzap Corporation issued $4,000,000 in five-year, 4% bonds on August 1, 2019. Interest is to be...
Zapzap Corporation issued $4,000,000 in five-year, 4% bonds on August 1, 2019. Interest is to be paid semi-annually on Feb 1 and August 1. The bonds were sold to yield 6% effective annual interest. Pine Corporation has a calendar year-end and follows IFRS. Instructions: Prepare the entries required for these bonds at • December 31, 2019(year end) • February 1, 2020 • August 1, 2020 when the interest was paid, and the entire issue was retired early for $4,350,000 plus...
Baker Company issued $6 million of five-year 12% bonds on January 1 with interest payable on...
Baker Company issued $6 million of five-year 12% bonds on January 1 with interest payable on June 30 and December 31 each year. The bonds sold to yield 16%. Baker Company's banker is Ted who provides bond valuation as a part of her banking services (a) Calculate the value of the bond when it was sold. (b) What do you call the difference between the bond face value and the amount it was issued for?
On June 1 2019, Gator Corporation Issued $700,000, 6%, 10 year bonds at face value. Interest...
On June 1 2019, Gator Corporation Issued $700,000, 6%, 10 year bonds at face value. Interest is payable annually on June 1. Gator Corporation has a calendar year end. a. Show the balance sheet presentation of the bonds and any related accounts on December 31, 2019. b. Prepare the journal entry for the interest payment on June 1 2020.
On January 1, 2016, BSC Corp issued a 10-year, $10,000,000, 7% bond. The interest is payable...
On January 1, 2016, BSC Corp issued a 10-year, $10,000,000, 7% bond. The interest is payable semi-annually. The market rate of interest for companies similar to BSC is 5%. BSC uses the effective-interest amortization method. The bond liability on BSC’s balance as of December 31, 2016 (the first year of the bond) is closest to: A. $11,435,336 B. $11,305,500 C. $11,497,889 D. $11,558,916 Based on the same information provided above, BSC’s interest expense for December 31, 2017 (the second year...
Present Value of Bonds Payable; Premium Moss Co. issued $180,000 of five-year, 11% bonds, with interest...
Present Value of Bonds Payable; Premium Moss Co. issued $180,000 of five-year, 11% bonds, with interest payable semiannually, at a market (effective) interest rate of 10%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. $
Present Value of Bonds Payable; Premium Moss Co. issued $610,000 of five-year, 13% bonds, with interest...
Present Value of Bonds Payable; Premium Moss Co. issued $610,000 of five-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate of 11%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. $
Present Value of Bonds Payable; Premium Moss Co. issued $100,000 of five-year, 11% bonds with interest...
Present Value of Bonds Payable; Premium Moss Co. issued $100,000 of five-year, 11% bonds with interest payable semiannually, at a market (effective) interest rate of 8%. Determine the present value of the bonds payable, using the present value tables in Exhibit 8 and Exhibit 10. Note: Round to the nearest dollar. $
On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year...
On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date Cash Interest Amortization Balance January 1, Year 1 $ 46,831 End of Year 1 $2,162 $ 1,967 $ 195 46,636 End of Year 2 ? ? ? 46,433 End of Year 3 ? ? 212...
On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year...
On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date Cash Interest Amortization Balance January 1, Year 1 $ 46,831 End of Year 1 $ 2,162 $ 1,967 $ 195 46,636 End of Year 2 ? ? ? 46,433 End of Year 3 ? ?...
1. On January 1, 2019 RockSolo Group issued $20 million of 6% bonds. Interest is payable...
1. On January 1, 2019 RockSolo Group issued $20 million of 6% bonds. Interest is payable semiannually on June 30th and December 31. The bonds were issued at an effective annual rate of 5% and mature in 10 years. a. Compute this issuance price for these bonds and prepare the journal entry to record their issuance. b. Prepare an amortization table that covers the first four coupon payments made related to these bond now assume that RockSolo incurred $500,000 of...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT