Question

On the first day of the fiscal year, a company issues a $2,000,000, 8%, five year...

On the first day of the fiscal year, a company issues a $2,000,000, 8%, five year bond for $2,170,600. Interest is paid semiannually. Premiums and discounts on bonds payable are amortized using the straight line method.

On the first interest payment date, for what amount would the interest expense account be debited?

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
On the first day of its fiscal year, Chin Company issued $10,100,000 of five-year, 4% bonds...
On the first day of its fiscal year, Chin Company issued $10,100,000 of five-year, 4% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 5%, resulting in Chin Company receiving cash of $9,658,036. a. Journalize the entries to record the following: 1 Issuance of the bonds. 2 First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with...
On the first day of its fiscal year, J Co. issued $1,000,000 of five-year, 8% bonds...
On the first day of its fiscal year, J Co. issued $1,000,000 of five-year, 8% bonds to finance the remodeling of an office building. Interest is payable semiannually. The bonds were issued at an effective interest rate of 11%, resulting in J Co. receiving cash of $886,935. Give the account to be debited, the account to be credited, and the amount to journalize the amortization of the discount/premium at the end of the first year using the straight-line method of...
On the first day of the fiscal year, a company issues a $930,000, 7%, five-year bond...
On the first day of the fiscal year, a company issues a $930,000, 7%, five-year bond that pays semiannual interest of $32,550 ($930,000 × 7% × 1/2), receiving cash of $884,175. Required: Journalize the entry to record the issuance of the bonds. A $306,000 bond was redeemed at 104 when the carrying value of the bond was $350,000. The entry to record the redemption would include a On January 1 of the current year, Barton Corporation issued 12% bonds with...
On the first day of its fiscal year, Chin Company issued $21,000,000 of five-year, 8% bonds...
On the first day of its fiscal year, Chin Company issued $21,000,000 of five-year, 8% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 10%, resulting in Chin Company receiving cash of $19,378,363. Part A:  Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual...
On the first day of the fiscal year, a company issues an $423,000, 7%, five-year bond...
On the first day of the fiscal year, a company issues an $423,000, 7%, five-year bond that pays semiannual interest of $14,805 ($423,000 x 7% x 1/2), receiving cash of $397,600. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.
in the first day of the fiscal year, a company issues an $948,000, 6%, five-year bond...
in the first day of the fiscal year, a company issues an $948,000, 6%, five-year bond that pays semiannual interest of $28,440 ($948,000 x 6% x 1/2), receiving cash of $891,100. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method. If an amount box does not require an entry, leave it blank.
On the first day of the fiscal year, a company issues an $310,000, 10%, five-year bond...
On the first day of the fiscal year, a company issues an $310,000, 10%, five-year bond that pays semiannual interest of $15,500 ($310,000 x 10% x 1/2), receiving cash of $291,400. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.
n January 1, the first day of its fiscal year, Chin Company issued $23,100,000 of five-year,...
n January 1, the first day of its fiscal year, Chin Company issued $23,100,000 of five-year, 9% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 10%, resulting in Chin Company receiving cash of $22,208,059. Required: A. Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles): 1. Issuance of the bonds. 2....
On the first day of the fiscal year, a company issues a $5,100,000, 10%, 4-year bond...
On the first day of the fiscal year, a company issues a $5,100,000, 10%, 4-year bond that pays semiannual interest of $255,000 ($5,100,000 × 10% × ½), receiving cash of $4,634,211. Journalize the bond issuance. If an amount box does not require an entry, leave it blank. Cash Discount on Bonds Payable Bonds Payable On the first day of the fiscal year, a company issues a $7,100,000, 11%, 9-year bond that pays semiannual interest of $390,500 ($7,100,000 × 11% ×...
On the first day of its fiscal year, Chin Company issued $10,800,000 of five-year, 11% bonds...
On the first day of its fiscal year, Chin Company issued $10,800,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Chin Company receiving cash of $10,402,505. a. Journalize the entries to record the following: Issuance of the bonds. First semiannual interest payment. The bond discount amortization, using the straight-line method, is combined with the semiannual...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT