Question

When is a bond issued at a discount and what is the journal entry?

When is a bond issued at a discount and what is the journal entry?

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
E10-8 Recording and Reporting a Bond Issued at a Discount (with Discount Account) LO10-4 Park Corporation...
E10-8 Recording and Reporting a Bond Issued at a Discount (with Discount Account) LO10-4 Park Corporation is planning to issue bonds with a face value of $800,000 and a coupon rate of 7.5 percent. The bonds mature in 8 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of...
J-BOND CO issued 700,000 of 8 year bonds at a stated rate of 4% when the...
J-BOND CO issued 700,000 of 8 year bonds at a stated rate of 4% when the market rate of interest was 5%. The bonds were issued on July 1 and paid interest semi-annually.   The issue price of the bonds is The bonds were issued at (premium, discount, par) The entry to record interest expense for period 7 is ( you may use clear abbreviations for the account names) If the company were to repurchase the bonds at 97 at the...
Identify three differences between a bond issued at a discount versus a bond issued at a...
Identify three differences between a bond issued at a discount versus a bond issued at a premium, using the effective-interest method of amortization.
A bond issued at face (100%) would be issued at a discount. true or false
A bond issued at face (100%) would be issued at a discount. true or false
Nocioni Company issued $1,000,000 of bonds on January 1, 2012. Prepare the journal entry to record...
Nocioni Company issued $1,000,000 of bonds on January 1, 2012. Prepare the journal entry to record the issuance of the bonds if they are issued at 100%, 98% and 103%. Prepare the journal entry to record the retirement of the bonds at maturity, assuming the bonds were issued at 100%. Prepare the journal entry to record the retirement of the bonds before maturity at 98. Assume the balance in Premium on Bonds Payable is $9,000. Prepare the journal entry to...
Firm A issued a bond with a face value of $1,000 and an issue price of...
Firm A issued a bond with a face value of $1,000 and an issue price of $855.78. What is the journal entry for the bond issuance? Select one: Cash                                            1,000 Discount on bonds payable                    144.22             Bonds payable                            855.78 Cash                                           855.78 Discount on bonds payable       144.22             Bonds payable                           1,000 Bonds payable                           855.78 Discount on bonds payable       144.22             Cash                                            1,000 Cash                                            1,000 Premium on bonds payable                    144.22             Bonds payable                            855.78
The company issued $1,670,000 of bonds on January 1, 2020. 1.Prepare the journal entry to record...
The company issued $1,670,000 of bonds on January 1, 2020. 1.Prepare the journal entry to record redemption of the bonds a maturity. Assume he bonds were issued at 100. 2. Prepare the journal entry to record redemption of the bonds maturity at 95. Assume the balance in premium on bonds is $9,500.
On January 1, 2019, Zoom corporation issued a $600,000 par value, 5%, 10-year bond. Interest will...
On January 1, 2019, Zoom corporation issued a $600,000 par value, 5%, 10-year bond. Interest will be paid every December 31. a) prepare journal entries for: 1) issuance, and 2) the first interest payment if the bond is issued at par value. b) what happens when the market interest rate equals 6%? Calculate the bond price. c) Prepare the journal entry for the bond issued when the market interest rate is 6%.
If the beginning balance of the bond (issued at a discount) is $885.30, the cash payment...
If the beginning balance of the bond (issued at a discount) is $885.30, the cash payment is $50 (coupon rate is 5%, face value of bond is $1,000), and the annual market interest rate for the period is 6%, what is the amount of amortization and the ending balance of the bond?
Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1,...
Bond Discount, Entries for Bonds Payable Transactions, Interest Method of Amortizing Bond Discount On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $36,000,000 of 20-year, 11% bonds at a market (effective) interest rate of 14%, receiving cash of $28,802,160. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: For all journal entries: For a compound transaction, if an amount box does...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT