Question
In: Accounting
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds payable to finance company expansion. The...
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds payable to finance company expansion. The bonds were dated January 1, 2019 and mature in four years on January 1, 2023. The bonds pay interest semi-annually each June 30th and December 31st. At the time of issuance, the market rate of interest for similarly risky investments was 6%. Requirements:
At what amount were the bonds issued on January 1, 2019?
Assuming Gleason Corp.’s fiscal year ends May 31st, prepare all necessary entries written during the calendar year 2019 (i.e. from January 1, 2019 through December 31, 2019) related to the bonds.
Gleason retired 25% of the bonds on January 1, 2021. Prepare the entry for the retirement, assuming the bonds were retired at 102.
Solutions
ekkarill92 answered 2 years agoRelated Solutions
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds payable to finance company expansion. The...
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds
payable to finance company expansion. The bonds were dated January
1, 2019 and mature in four years on January 1, 2023. The bonds pay
interest semi-annually each June 30th and December 31st. At the
time of issuance, the market rate of interest for similarly risky
investments was 6%.
1. At what amount were the bonds issued on January 1, 2019?
2. Prepare an amortization schedule for the life of the...
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds payable to finance company expansion. The...
On January 1, 2019, Gleason Corp. issued $700,000, 8% bonds
payable to finance company expansion. The bonds were dated January
1, 2019 and mature in four years on January 1, 2023. The bonds pay
interest semi-annually each June 30th and December 31st. At the
time of issuance, the market rate of interest for similarly risky
investments was 6%.
1. At what amount were the bonds issued on January 1, 2019?
2. Prepare an amortization schedule for the life of the...
Question: Bonds Payable On January 1, 2019, ABC Company issued bonds with a face value of...
Question: Bonds Payable
On January 1, 2019, ABC Company issued bonds with a face value
of $1,000 and a coupon rate of 8 percent. The bonds mature in 2
years and pay interest on June 30 and December 31 each year. The
market rate is 12% annually. The present value of $1 table and the
present value of annuity of $1 table are provided on the next
page.Round your final answers to the nearest whole
dollar.
(1) What is the...
Matt Winne, Inc. issued $700,000 of 9%, five-year bonds payable on January 1, 2018. The market...
Matt Winne, Inc. issued $700,000 of 9%, five-year bonds
payable on January 1, 2018.
The market interest rate at the date of issuance was 6%, and
the bonds pay interest semiannually.
1.
How much cash did the company receive upon issuance of the
bonds payable? (Round to the nearest dollar.)
2.
Prepare an amortization table for the bond using the
effective-interest method, through the first two interest
payments. (Round to the nearest dollar.)
3.
Journalize the issuance of the bonds...
Eureka Company issued $290,000 in bonds payable on January 1, 2016. The bonds were issued at...
Eureka Company issued $290,000 in bonds payable on January 1,
2016. The bonds were issued at face value and carried 4-year term
to maturity. They had a 5% stated rate of interest that was payable
in cash on January 1st of each year beginning January 1, 2017.
Based on this information, the amount of total liabilities
appearing on the December 31, 2016 balance sheet would be:
$290,000. $288,550. $304,500. $14,500.
Adcock Company issued $96,000, 8%, 20-year bonds on January 1, 2015, at 102. Interest is payable...
Adcock Company issued $96,000, 8%, 20-year bonds on January 1,
2015, at 102. Interest is payable semiannually on July 1 and
January 1. Adcock uses straight-line amortization for bond premium
or discount.
1) Prepare the journal entry to record the issuance of the
bonds
2) Prepare the journal entry to record the payment of interest
and the premium amortization on July 1, 2015, assuming that
interest was not accrued on June 30.
3) Prepare the journal entry to record the...
McGee Company issued $400,000 of 8%, 10-year bonds on January 1, 2017. Interest is payable semiannually...
McGee Company issued $400,000 of 8%, 10-year bonds on January 1,
2017. Interest is payable semiannually on July 1 and January 1.
Mcgee Company uses the effective interest method of amortization
for bond premium or discount. Assume an effective yield of 6% in
Pricing the bond.
Prepare the journal entries to record the following (round to
the nearest dollar.)
The issuance of the bonds.
The payment of interest and related amortization July 1.
The accrual of interest and the related...
Schmidt Company issued $ 260,000, 8%, 10-year bonds payable at 92 on January 1, 2018. Journalize...
Schmidt Company issued $ 260,000, 8%, 10-year bonds payable
at 92 on January 1, 2018.
Journalize the issuance of the bonds payable on January 1,
2018.
7. Journalize the payment of semiannual interest and
amortization of the bond discount or premium (using the
straight-line amortization method) on July 1, 2018.
8. Assume the bonds payable was instead issued at 106.
Journalize the issuance of the bonds payable and the payment of the
first semiannual interest and amortization of the bond...
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...
A company issued $700,000 of 9%, ten-year convertible bonds on January 1, 2020 at 95, with...
A company issued $700,000 of 9%, ten-year convertible bonds on
January 1, 2020 at 95, with interest payable July 1 and January 1.
Bond discount/premium is amortized semiannually on a straight-line
basis. On July 1, 2023, these bonds were converted into common
stock. What should be the amount of the unamortized bond
discount/premium on July 1, 2023 relating to the bonds
converted?
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