A company issued 9%, 15-year bonds with a par value of $560,000 that pay interest semiannually....

A company issued 9%, 15-year bonds with a par value of $560,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is:

Multiple Choice

Debit Bond Interest Expense $510,000; credit Cash $510,000.
No entry is needed, since no interest is paid until the bond is due.
Debit Bond Interest Expense $50,400; credit Cash $50,400.
Debit Bond Interest Expense $25,200; credit Cash $25,200.
Debit Bond Interest Payable $37,333; credit Cash $37,333.

Expert Solution

ekkarill92 answered 2 years ago

A company issued 9%, 15-year bonds with a par value of $650,000 that pay interest semiannually....

A company issued 9%, 15-year bonds with a par value of $650,000 that pay interest semiannually. The market rate on the date of issuance was 9%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $29,250; credit Cash $29,250. Debit Bond Interest Payable $43,333; credit Cash $43,333. Debit Bond Interest Expense $600,000; credit Cash $600,000. No entry is needed, since no interest is paid until the bond is due. Debit Bond Interest Expense...

A company issued 8%, 15-year bonds with a par value of $580,000 that pay interest semiannually....

A company issued 8%, 15-year bonds with a par value of $580,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $46,400; credit Cash $46,400. Debit Bond Interest Expense $530,000; credit Cash $530,000. Debit Bond Interest Expense $23,200; credit Cash $23,200. No entry is needed, since no interest is paid until the bond is due. Debit Bond Interest Payable...

Sandhill Co. issued 8%, 9-year, $2,618,600 par value bonds that pay interest semiannually on October 1...

Sandhill Co. issued 8%, 9-year, $2,618,600 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2017, and are issued on that date. The discount rate of interest for such bonds on April 1, 2017, is 8%. What cash proceeds did Sandhill receive from issuance of the bonds?

Jimenez Enterprises issued 9%, 8-year, $2,689,000 par value bonds that pay interest semiannually on October 1 and April 1.

Jimenez Enterprises issued 9%, 8-year, $2,689,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2014, and are issued on that date. The discount rate of interest for such bonds on April 1, 2014, is 10%.What cash proceeds did Jimenez receive from the issuance of the bonds?

Gleason Enterprises issued 12%, 7-year, $2,630,000 par value bonds that pay interest semiannually on October 1...

Gleason Enterprises issued 12%, 7-year, $2,630,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2020, and are issued on that date. The discount rate of interest for such bonds on April 1, 2020, is 14%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What cash proceeds did Gleason receive from issuance of the bonds? (Round answer...

Spiller Corp. plans to issue 6%, 9-year, $550,000 par value bonds payable that pay interest semiannually...

Spiller Corp. plans to issue 6%, 9-year, $550,000 par value bonds payable that pay interest semiannually on June 30 and December 31. The bonds are dated December 31, 2019, and are issued on that date. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your "Table value" to 4 decimal places and final answers to nearest whole dollar.) If the market rate of interest for the bonds is...

Question 3 A company issued 8%, 15-year bonds with a par value of $470,000 that pay...

Question 3 A company issued 8%, 15-year bonds with a par value of $470,000 that pay interest semiannually. The market rate on the date of issuance was 8%. The journal entry to record each semiannual interest payment is: Multiple Choice Debit Bond Interest Expense $37,600; credit Cash $37,600. Debit Bond Interest Expense $18,800; credit Cash $18,800. Debit Bond Interest Payable $31,333; credit Cash $31,333. No entry is needed, since no interest is paid until the bond is due. Debit Bond...

Wildhorse Corporation issues $560,000 of 9% bonds, due in 9 years, with interest payable semiannually. At...

Wildhorse Corporation issues $560,000 of 9% bonds, due in 9 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971.) Issue price of the bonds

Adonis Corporation issued 10-year, 11% bonds with a par value of $270,000. Interest is paid semiannually....

Adonis Corporation issued 10-year, 11% bonds with a par value of $270,000. Interest is paid semiannually. The market rate on the issue date was 10%. Adonis received $286,827 in cash proceeds. Which of the following statements is true? a) Adonis must pay $286,827 at maturity and no interest payments. b) Adonis must pay $270,000 at maturity and no interest payments. c) Adonis must pay $270,000 at maturity plus 20 interest payments of $13,500 each. d) Adonis must pay $286,827 at...

Adonis Corporation issued 10-year, 7% bonds with a par value of $130,000. Interest is paid semiannually....

Adonis Corporation issued 10-year, 7% bonds with a par value of $130,000. Interest is paid semiannually. The market rate on the issue date was 6%. Adonis received $139,674 in cash proceeds. Which of the following statements is true? Adonis must pay $139,674 at maturity plus 20 interest payments of $4,550 each. Adonis must pay $130,000 at maturity plus 20 interest payments of $4,550 each. Adonis must pay $130,000 at maturity plus 20 interest payments of $3,900 each. Adonis must pay...

Question