HomeworkLib
Question

Need help figuring out the journey entry for . Company Issued a $500,000 of 10-year, 5%...

Need help figuring out the journey entry for .

Company Issued a $500,000 of 10-year, 5% bonds at 104, with interest payable

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

The entry would be

Debit Credit
Cash (500,000*104%) 520,000
Premium on Bonds Payable (balancing figure) 20,000
Bonds payable 500,000

Comment if you face any issues

0 0
Add a comment
Know the answer?
Add Answer to:
Need help figuring out the journey entry for . Company Issued a $500,000 of 10-year, 5%...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • On October 1, 20XX, Bartley Corporation issued 5%, 10-year bonds with a face value of $500,000...

    On October 1, 20XX, Bartley Corporation issued 5%, 10-year bonds with a face value of $500,000 at $520,000. The entry to record the issuance of the bonds would include a credit of $20,000 to Premium on Bonds Payable credit of $520,000 to Bonds Payable debit of $20,000 to Discount on Bonds Payable credit of $480,000 to Bonds Payable

  • On January 1, 2020, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest is...

    On January 1, 2020, Klosterman Company issued $500,000, 10%, 10-year bonds at face value. Interest is payable annually on January 1. Instructions: Prepare journal entries to record the following. (a)  The issuance of the bonds. (b) The accrual of interest on December 31, 2020. (c)  The payment of interest on January 1, 2021.

  • On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000...

    On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000 at 104%. On October 1 and April 1, interest is paid. Any premiums or discounts are amortized on a straight-line basis. Which of the following will you include in your entry to record the issuance of the bonds? On October 1, 2015, Bartleby Corp. issued 5%, 10-year bonds with a face value of $3,000,000 at 104%. On October 1 and April 1, interest is...

  • On April 1, 2016, Alpha Company issued $500,000 of 12%, 10-year bonds. The bonds, which were...

    On April 1, 2016, Alpha Company issued $500,000 of 12%, 10-year bonds. The bonds, which were issued at 103, pay interest on Octobér 1 and April 1. Use this information to prepare the General Journal entry (without explanation) to record the April 1, 2016 bond issue. If no entry is required then write "No Entry Required." General Journal: Date Accounts Debit Credit

  • Question 1 (6 points) On April 1, 2016, Alpha Company issued $500,000 of 12%, 10-year bonds....

    Question 1 (6 points) On April 1, 2016, Alpha Company issued $500,000 of 12%, 10-year bonds. The bonds, which were issued at 103, pay interest on October 1 and April 1. Use this information to prepare the General Journal entry (without explanation) to record the April 1, 2016 bond issue. If no entry is required then write "No Entry Required." D DC - Format V BI U - Question 2 (6 points) Saved On June 1, 2016 Alpha Corporation issued...

  • Primrose Corporation issued a 5 year, $500,000 bond with a 10% coupon rate. Interest is payable...

    Primrose Corporation issued a 5 year, $500,000 bond with a 10% coupon rate. Interest is payable every 6 months. The market discount rate is 12% annually. What is the price the bonds will sell for? Show your work.

  • Exercise 15-6 Whitmore Company issued $500,000 of 5-year, 5% bonds at 95 on January 1, 2017....

    Exercise 15-6 Whitmore Company issued $500,000 of 5-year, 5% bonds at 95 on January 1, 2017. The bonds pay Interest annually Prepare the journal entry to record the issuance of the bonds. (Credit account titles are automatically Indented when amount is entered. Do not Indent manually.) Account Titles and Explanation Debit 475000 Discount on Bonds Payable 25000 Bonds Payable 500000 SHOW LIST OF ACCOUNTS Compute the total cost of borrowing for these bonds. Total cost of borrowing 150000 SHOW LIST...

  • On January 1, 2011, Gray Company issued $500,000 of 5-year, 3% bonds for $470,000, their interest...

    On January 1, 2011, Gray Company issued $500,000 of 5-year, 3% bonds for $470,000, their interest payable semiannually every June 30 and December 31. Gray uses straight-line amortization, having judged the difference under the effective-interest method to be immaterial. Scenario #1 On April 30, 2015, Gray retired all of the bonds at 101. Prepare the bond-related journal entry(s) Gray should have made on April 30, 2015. Scenario #2 On April 30th 2015, Gray retired $100,000 of the bonds at 98....

  • Need help with journal entry for Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from...

    Need help with journal entry for Purchased $90,000 of Dream Inc. 10-year, 5% bonds, directly from the issuing company, at their face amount plus accrued interest of $375. The bonds are classified as a held-to-maturity long-term investment.

  • please help with this exercise. Problem 1 Crane Company issued $3,100,000 of 10%, 10-year bonds on...

    please help with this exercise. Problem 1 Crane Company issued $3,100,000 of 10%, 10-year bonds on January 1, 2017, at 104. Interest is payable semiannually on July 1 and January 1. Crane Company uses the effective interest method of amortization for bond premium or discount. Assume an effective yield of 9.46810%. Prepare the journal entries to record the following. (a) The issuance of the bonds. (b) The payment of interest and related amortization on July 1, 2017. (c) The accrual...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT