On January 1, 2008, Shelly Corp. issued $8,000,000 face value 20-year bonds at 101. Bond issuance...

On January 1, 2008, Shelly Corp. issued $8,000,000 face value 20-year bonds at 101. Bond issuance costs total $40,000. The bonds pay interest semi-annually on Jan 1 and Dec 1. Shelly uses straight-line amortization. On Jan 1, 2016, Shelly calls the entire issue at 103 and cancels it.

Required: Prepare the journal entry for this bond redemption on Jan 1, 2016. Please show all work

Expert Solution

ekkarill92 answered 1 year ago

On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and...

On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 7%.

Issuance of a Bond at Face Value On January 1, 2017, Whitefeather Industries issued 1,100, $1,000...

Issuance of a Bond at Face Value On January 1, 2017, Whitefeather Industries issued 1,100, $1,000 face value bonds. The bonds have a(n) 10-year life and pay interest at the rate of 10%. Interest is paid semiannually on July 1 and January 1. The market rate of interest on January 1 was 10%. Use the present value tables that may be found by clicking on the present value table links above. Round your answer to the nearest dollar. Required: 1....

On January 1, Landan, Inc. issued a 20-year semiannual bond with a face value of $915,000...

On January 1, Landan, Inc. issued a 20-year semiannual bond with a face value of $915,000 paying 8%. On the date of issue, the market rate for similar bonds was 8%. Landan would like to know how much this issuance would raise. The following table is a SCRATCH table and will NOT be graded. You may use it, if you wish, to assist you. Provided you answer the other questions correctly, you could leave it blank and still receive full...

January 1, 2018: Nexxon corporation issued 20 year, 9% bonds with a face value of $2,000,0000....

January 1, 2018: Nexxon corporation issued 20 year, 9% bonds with a face value of $2,000,0000. the bonds were sold to yield 10%. Interest is payable semi-annually on january 1 and July 1. Effective rate amortization is to be used. 1. what is the issue price of the bonds? 2. Using EXCEL, prepare an amortization table for the entire bond term. 3. Record the bond issuance on 1/1/18 4. assume the company prepares financial statements semi-annually on June 30 and...

On January 1, 2016, Gless Textiles issued $20 million of 9%, 20-year convertible bonds at 101....

On January 1, 2016, Gless Textiles issued $20 million of 9%, 20-year convertible bonds at 101. The bonds pay interest on June 30 and December 31. Each $1,000 bond is convertible into 40 shares of Gless’s no par common stock. Bonds that are similar in all respects, except that they are nonconvertible, currently are selling at 99 (that is, 99% of face amount). Century Services purchased 10% of the issue as an investment. Required: 1. Prepare the journal entries for...

On January 1 of this year, Ikuta Company issued a bond with a face value of...

On January 1 of this year, Ikuta Company issued a bond with a face value of $145,000 and a coupon rate of 7 percent. The bond matures in 3 years and pays interest every December 31. When the bond was issued, the annual market rate of interest was 8 percent. Ikuta uses the effective-interest amortization method. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final...

CASIO Corp. issued P500,000 face value bonds on January 1, 20x8. The bonds, which will mature...

CASIO Corp. issued P500,000 face value bonds on January 1, 20x8. The bonds, which will mature on January 1, 20x11 pay interest of 12% every December 31. The bonds are issued to yield 10% interest. What is the carrying value of the bonds on December 31, 20x9?

On January 1, 2008, Davis Corporation issued $3,000,000 of 8% bonds at 101. Interest is paid...

On January 1, 2008, Davis Corporation issued $3,000,000 of 8% bonds at 101. Interest is paid annually on December 31 of each year. The bonds mature on December 31, 2027, and the company uses the straight-line method of amortization. On January 2, 2016, Davis reacquired the bonds and recognized a loss of $91,000. Prepare the journal entry to record the reacquisition of Davis’s bonds on January 2, 2016. Calculate the reacquisition price of the bonds on January 2, 2016.

Diaz Company issued bonds with a $110,000 face value on January 1, Year 1. The bonds...

Diaz Company issued bonds with a $110,000 face value on January 1, Year 1. The bonds had a 6 percent stated rate of interest and a 10-year term. Interest is paid in cash annually, beginning December 31, Year 1. The bonds were issued at 96. The straight-line method is used for amortization. Required a. Use a financial statements model like the one shown next to demonstrate how (1) the January 1, Year 1, bond issue and (2) the December 31,...

Jacobs Company issued bonds with a $178,000 face value on January 1, Year 1. The bonds...

Jacobs Company issued bonds with a $178,000 face value on January 1, Year 1. The bonds were issued at 105 and carried a 5-year term to maturity. They had a 7% stated rate of interest that was payable in cash on December 31st of each year. Jacobs uses the straight-line method to amortize bond discounts and premiums. Based on this information alone, how does the recognition of interest expense during Year 1 affect the company’s accounting equation? Multiple Choice Increase...

Question