Question

In: Accounting

Q1- Khaled’s company issued and sold $500,000 bond payable on January 1, 2019, with an interest...

Q1- Khaled’s company issued and sold $500,000 bond payable on January 1, 2019, with an interest rate of 6%, 5-year and received $465,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. Prepare the journal entries to record these transactions on January 1st, at the first interest payment and at the maturity date?

Q2- Prepare the journal entries to record these transactions:

A. At the beginning of the year Mohammed, Inc. issued an amount of shares of 5 par value stock for 30 per share. (Provide an amount of the stock issued)?

B. On December 1st, Mohammed’s, Inc. declared a 5 per share cash dividend, for an amount of common shares outstanding (Provide an amount of the common shares). The dividend will be paid on December 31 to stockholders of record on December 15?

Q3- Here is the following information for Abdullah’s Company, please calculate the net cash provided by operating activities using the indirect method: by providing an amount of each information below:

Net income:

Depreciation expense:

Accounts receivable decreased:

Gain on sale of land:

Merchandise inventory increased:

Proceeds from sale of land:

Prepaid expenses decreased:

Accounts payable increased:

Expert Solution

The journal entries are provided in the pic given below,

If you have any doubts or answer is not in the format as you expected, please send me a comment before rating my answer and i will clarify the doubt.

Thanks

ekkarill92 answered 1 year ago

On January 1, 2014, Housen Company issued 10-year bonds of $500,000 at 102. Interest is payable...

On January 1, 2014, Housen Company issued 10-year bonds of $500,000 at 102. Interest is payable on January 1 and July 1 at 10%. April 1, 2015, Housen Company reacquires and retired 50 of its own $1000 bonds at 98 plus accrued interest. The fiscal period for Honsen Company is the calendar year. Prepare entries to record (1) the issuance of the bonds, (2) the interest payments and adjustments relating to the debt in 2014, (3) the reacquistion and retirement...

On January 1, a company issued and sold a $391,000, 7%, 10-year bond payable, and received...

On January 1, a company issued and sold a $391,000, 7%, 10-year bond payable, and received proceeds of $386,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: Multiple Choice Debit Bond Interest Expense $13,435; debit Discount on Bonds Payable $250; credit Cash $13,685. Debit Bond Interest Expense $27,370; credit Cash $27,370. Debit Bond Interest Expense $13,935; credit Cash $13,685;...

On January 1, a company issued and sold a $409,000, 6%, 10-year bond payable, and received...

On January 1, a company issued and sold a $409,000, 6%, 10-year bond payable, and received proceeds of $404,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: Multiple Choice Debit Bond Interest Expense $12,020; debit Discount on Bonds Payable $250; credit Cash $12,270. Debit Bond Interest Expense $12,520; credit Cash $12,270; credit Discount on Bonds Payable $250. Debit Bond...

On January 1, a company issued and sold a $407,000, 8%, 10-year bond payable, and received...

On January 1, a company issued and sold a $407,000, 8%, 10-year bond payable, and received proceeds of $402,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: Multiple Choice Debit Bond Interest Expense $16,530; credit Cash $16,280; credit Discount on Bonds Payable $250. Debit Bond Interest Expense $32,560; credit Cash $32,560. Debit Bond Interest Expense $16,030; debit Discount on...

On January 1, a company issued and sold a $330,000, 4%, 10-year bond payable, and received...

On January 1, a company issued and sold a $330,000, 4%, 10-year bond payable, and received proceeds of $323,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is:

On January 1, 2013, a company issued and sold a $450,000, 7%, 10-year bond payable and...

On January 1, 2013, a company issued and sold a $450,000, 7%, 10-year bond payable and received proceeds of $445,500. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:

On January 1, a company issued and sold a $430,000, 5%, 10-year bond payable, and received...

On January 1, a company issued and sold a $430,000, 5%, 10-year bond payable, and received proceeds of $420,000. Interest is payable each June 30 and December 31. The company uses the straight line method to amortize the discount. The carrying value of the bonds immediately after the second interest payment is

On January 1, 2018, the Company issued a 4-year, 9%, $500,000 bond that will pay interest...

On January 1, 2018, the Company issued a 4-year, 9%, $500,000 bond that will pay interest at the end of each month. The market rate at the time of issue was 7%. The assignment requires you to calculate the issue price (present value of the bond) as well as the discount or premium. The assignment then requires you complete the entire amortization schedule from issue date through maturity. The last requirement asks you to prepare three journal entries

1.On January 1, a company issued and sold a $408,000, 9%, 10-year bond payable, and received...

1.On January 1, a company issued and sold a $408,000, 9%, 10-year bond payable, and received proceeds of $403,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is: a. Debit Bond Interest Expense $36,720; Credit cash $36,720 b. Debit Bond Interest Expense $18,360; Credit Cash $18,360 c. Debit Bond INterest Expense $18,360; debit dicsount on bonds payable $250; credit cash...

Dean Corp. issued $500,000 of 7% debentures on January 1, 2018, with interest payable semiannually on...

Dean Corp. issued $500,000 of 7% debentures on January 1, 2018, with interest payable semiannually on June 30 and December 31 to yield 6%. The bonds mature in 5 years. Prepare an amortization table for the bonds. Make sure you provide column headers. Excel would be the best way to prepare this. Write out in pencil your labelled calculations for the first two interest payments. Write the entries for the first two payments. Why would the issuer not want to...