Question

XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate of...

  1. XYZ issues a 15-year, $20,000,000 bond on September 1, 2019 with a stated interest rate of 3.4%, payable semiannually. Market interest rates on September 1, 2019 were 3.8%. Prepare the journal entry to record the transaction on September 1, 2019.
  2. Prepare the journal entries to record interest expense and other accounts for XYZ’s bond for the first 2 interest payments (ignore year-end accruals)
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #2

answered by: anonymous
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 January 1, Year 1, a company issues $550,000 of 5% bonds, due in 15 years,...
On January 1, Year 1, a company issues $550,000 of 5% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year. Required: Assuming the market interest rate on the issue date is 5%, the bonds will issue at $550,000. Record the bond issue on January 1, Year 1, and the first two semiannual interest payments on June 30, Year 1, and December 31, Year 1. (If no entry is required for a particular...
Heart Science Company has issued three different bonds during 2019. Interest is payable semiannually on each...
Heart Science Company has issued three different bonds during 2019. Interest is payable semiannually on each of these bonds. On January 2, 1019, 1000 8% 5 year, $1,000 bonds dated January 1, 2019, were issued at face value. On July 1, $800,000, 9%, 5 year bonds dated July 1, 2010 were issued at 102. On September 1, $200,000, 7%, 5 year bonds dated September 1, 2019 were issued at 98. REQUIRED: Prepare the journal entry to record each bond transaction...
Trader Joes issues $5,000,000 of 8%, 4-year bonds dated January 1, 2013, that pay interest semiannually...
Trader Joes issues $5,000,000 of 8%, 4-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of 5,030,00 Prepare the January 1, 2013, journal entry to record the issuance. For each semiannual period, compute the cash payment, the straight-line premium or discount amortization the bond interest expense Cash proceeds= Cash proceeds= Bonds interest expense= cash interest paid + bond discount Bonds interest expense= Bonds interest expense= Bonds...
Heyward Company issues 10-year bonds with a face value of $4,000,000 and a stated annual interest...
Heyward Company issues 10-year bonds with a face value of $4,000,000 and a stated annual interest rate of 5%. The bonds pay interest semiannually on June 30 and December 31. The annual market rate of interest on the date of issue is 6%. Provide the journal entry that the company will make to record the bond issue.
Hillside issues $1,200,000 of 8%, 15-year bonds dated January 1, 2016, that pay interest semiannually on...
Hillside issues $1,200,000 of 8%, 15-year bonds dated January 1, 2016, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,036,935. Required: 1. Prepare the January 1, 2016, journal entry to record the bonds’ issuance. 2. (a) For each semiannual period, complete the table below to calculate the cash payment. 2. (b) For each semiannual period, complete the table below to calculate the straight-line discount amortization. 2. (c) For each semiannual...
19. On September 1, 2019, Nile Company borrows $140,000 from Toronto State Bank by signing a...
19. On September 1, 2019, Nile Company borrows $140,000 from Toronto State Bank by signing a 7-month, 6%, interest-bearing note. Instructions: Prepare the necessary entries below associated with the note payable on the books of Nile Company. (a)    Prepare the entry on September 1, 2019, when the note was issued. (b)    Prepare the necessary adjusting journal entry at December 31, 2019. (c)    Prepare the entry to record payment of the note and interest at maturity on April 1, 2020.
January 1, 2019 ABEF company issued 5-year bonds with a par value of $1,000,000 and a...
January 1, 2019 ABEF company issued 5-year bonds with a par value of $1,000,000 and a 6% annual stated rate of interest. The issue price of the bond was $950,000. Interest payments are made semiannually. Any premiums or discounts should amortized using the straight line method. (Remember when amortizing pay attention to how many periods) Prepare Journal Entries for the following A) Record the issuance of the bonds B) Record interest expense at June 30, 2019 C) Record interest expense...
On November 1, 2019, N Corporation issues a 15-year, $100,000 bond paying 10 percent interest semiannually...
On November 1, 2019, N Corporation issues a 15-year, $100,000 bond paying 10 percent interest semiannually ($5,000) for an issue price of $86, 235.17. The yield to maturity is 12%. Demonstrate an understanding of OID by setting up an amortization spreadsheet. YOU DO NOT HAVE TO COMPLETE THE SCHEDULE.   JUST SHOW AND EXPLAIN 2 YEARS OF THE ACCRUALS.
On January 1, 2019, The Pangborn Company issued $100,000 of its ten-year, 6% bonds payable at...
On January 1, 2019, The Pangborn Company issued $100,000 of its ten-year, 6% bonds payable at $108,000 to yield a market rate of 5%. The bonds were dated January 1, 2019, and interest is paid semiannually on each June 30 and each December 31. The effective interest method is used for amortization and no adjusting journal entries were made during the year. Prepare the journal entry for the sale of the bonds. Prepare the journal entry to record the first...
Hillside issues $2,500,000 of 6%, 15-year bonds dated January 1, 2015, that pay interest semiannually on...
Hillside issues $2,500,000 of 6%, 15-year bonds dated January 1, 2015, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,059,990. Required: 1. Prepare the January 1, 2015, journal entry to record the bonds’ issuance. 2(a) For each semiannual period, complete the table below to calculate the cash payment. 2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. (Round "Unamortized Premium" to whole dollar and...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT