Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8%...
Keys Inc. issued 100 bonds with a face value of $1,000 and a rate of 8% at $1,025 each. The journal entry to record this transaction includes ________.
- a credit to Bonds Payable for $102,500
- a credit to cash for $102,500
- a debit to cash for $100,000
- a credit to Premium on Bonds Payable for $2,500
Homework Answers
Face value = $1,000
Issued value = $1,025
Journal Entry is
Cash account...............................Debit ($1,025 * 100) $102,500
To Bonds Payable account........Credit ($1,000 * 100) = $100,000
To Premium on bonds payable account. credit (25*100) = $2,500
Option 'D' is correct
Credit to premium on Bonds payable for $2,500
Add Answer to:
Keys Inc. issued 100 bonds with a face value of $1,000 and a
rate of 8%...
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate...
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 5.50 percent, so the total proceeds from the bond issue were $101,347. Methodical uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare...
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds...
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7% payable in cash on December 31 of each year. The company amortizes the premium on a straight-line basis. Assuming a straight line amortization of the premium, the journal entry necessary to recognize interest expense on the December 31, Year 1 is...
On January 1, 2018, Montgomery Inc. issued $200,000, 20-year, 5% bonds at 102. Interest is payable...
On January 1, 2018, Montgomery Inc. issued $200,000, 20-year, 5% bonds at 102. Interest is payable semiannually on January 1 and July 1. The journal entry to record this transaction on January 1, 2018, is: options: debit cash, $200,000; credit bonds payable, $200,000. debit cash, $252,500; credit bonds payable, $250,000, credit premium on bonds payable, $2,500 debit cash, $204,000; credit bonds payable, $200,000; credit premium on bonds payable, $4,000. debit cash, $250,000; debit premium on bonds payable, $5,000; credit bonds...
Required information M10-11 Recording Bonds Issued at Face Value (LO 10-3] [The following information applies to the qu...
Required information M10-11 Recording Bonds Issued at Face Value (LO 10-3] [The following information applies to the questions displayed below.] Schlitterbahn Waterslide Company issued 27,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31. (a) The issuance of these bonds on January 1. (b) The first interest payment on December 31. 2. Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No journal...
On January 1, 2013, Surreal Manufacturing issued 780 bonds, each with a face value of $1,000,...
On January 1, 2013, Surreal Manufacturing issued 780 bonds, each with a face value of $1,000, a stated interest rate of 3.75 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $774,591. Surreal uses the effective-interest bond amortization method. Required: 1. Prepare a bond amortization schedule. (Round your final answers to the nearest whole dollar.)...
True or False 1.Bonds are sold at face value when the contract rate is equal to...
True or False 1.Bonds are sold at face value when the contract rate is equal to the market rate of interest. 2.If the market rate of interest is 8% and a corporation's bonds bear interest at 7%, the bonds will sell at a premium 3.If the straight-line method of amortization is used, the amount of unamortized premium on bonds payable willdecrease as the bonds approach maturity. 4.Bonds payable should be reported on the balance sheet at face value plus or...
On January 1, 2013, Surreal Manufacturing issued 630 bonds, each with a face value of $1,000,...
On January 1, 2013, Surreal Manufacturing issued 630 bonds, each with a face value of $1,000, a stated interest rate of 3.50 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $670,567. Surreal uses the effective-interest bond amortization method. Required: 1. Prepare a bond amortization schedule. (Round your final answers to the nearest whole dollar.)...
On March 1, 2015, Sherwin, Inc. issued bonds with a face value of $800,000. The bonds...
On March 1, 2015, Sherwin, Inc. issued bonds with a face value of $800,000. The bonds carry a face interest rate of 12 percent that is payable each June 30 and December 31. The bonds were sold at 100. Sherwin's accounting year ends on December 31. Prepare an entry in journal form without explanation to record the issuance of the bonds on March 1, 2015. Prepare an entry in journal form without explanation to record the interest payment on June...
EKM, Inc issued 8%, 3-year bonds with a par value of $250,000 that pay interest semiannually....
EKM, Inc issued 8%, 3-year bonds with a par value of $250,000 that pay interest semiannually. The bond was issued at market rate. The journal entry to record each semiannual interest payment is: Debit Bond Interest Expense $10,000; credit Cash $10,000. Debit Bond Interest Expense $20,000; credit Cash $20,000. Debit Cash $20,000; credit Bond Interest Expense $20,000. Debit Bond Interest Payable $25,000; credit Cash $25,000. No entry is needed, since no interest is paid until the bond is due.
On January 1, Innovative Solutions, Inc., issued $210,000 in bonds at face value. The bonds have a stated intere...
On January 1, Innovative Solutions, Inc., issued $210,000 in bonds at face value. The bonds have a stated interest rate of 7 percent. The bonds mature in 10 years and pay interest once per year on December 31 Required: 1,2 & 3. Prepare the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 102 (if...
On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 104 resulting in a 4% premium. They had a 20 year term and a stated rate of interest of 7% payable in cash on December 31 of each year. The company amortizes the premium on a straight-line basis. Assuming a straight line amortization of the premium, the journal entry necessary to recognize interest expense on the December 31, Year 1 is...
Required information M10-11 Recording Bonds Issued at Face Value (LO 10-3] [The following information applies to the questions displayed below.] Schlitterbahn Waterslide Company issued 27,000, 10-year, 5 percent, $100 bonds on January 1 at face value. Interest is payable each December 31. (a) The issuance of these bonds on January 1. (b) The first interest payment on December 31. 2. Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No journal...
On January 1, 2013, Surreal Manufacturing issued 780 bonds, each with a face value of $1,000, a stated interest rate of 3.75 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $774,591. Surreal uses the effective-interest bond amortization method. Required: 1. Prepare a bond amortization schedule. (Round your final answers to the nearest whole dollar.)...
On January 1, 2013, Surreal Manufacturing issued 630 bonds, each with a face value of $1,000, a stated interest rate of 3.50 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 4.00 percent, so the total proceeds from the bond issue were $670,567. Surreal uses the effective-interest bond amortization method. Required: 1. Prepare a bond amortization schedule. (Round your final answers to the nearest whole dollar.)...
On January 1, Innovative Solutions, Inc., issued $210,000 in bonds at face value. The bonds have a stated interest rate of 7 percent. The bonds mature in 10 years and pay interest once per year on December 31 Required: 1,2 & 3. Prepare the required journal entries to record the bond issuance, interest payment on December 31, early retirement of the bonds. Assume the bonds were retired immediately after the first interest payment at a quoted price of 102 (if...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago