Assume the bonds in BE12-16 were issued for $429,757 and the effective interest rate is 6%. Prepare

Question:

Assume the bonds in BE12-16 were issued for $429,757 and the effective interest rate is 6%. Prepare the company’s journal entries for

(a) The January 1 issuance,

(b) The July 1 interest payment, and

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting principles and analysis

ISBN: 978-0471737933

2nd Edition

Authors: Terry d. Warfield, jerry j. weygandt, Donald e. kieso

See More Books

Question Posted: May 16, 2012 07:50 AM

See More Questions

Assume the bonds in IFRS14-3 were issued for $644,636 and the effectiveinterest rate is 6%. Prepare the companys journal entries for (a) The January 1 issuance, (b) The July 1 interest payment, and...
Assume the bonds in BE14.2 were issued at 108.11 to yield 8%. Prepare the journal entries for (a) January 1, (b) July 1, (c) December 31.
Assume the bonds in BE14.2 were issued at 92.6393 to yield 12%. Prepare the journal entries for (a) January 1, (b) July 1, (c) December 31.
You are supply chain manager for a company Yard-Depot located in Huntsville. You found a drywall sheetrock manufacturing company in South Nevada and signed a deal to buy sheetrock from this company....
Firm A and Firm B have debt-total asset ratios of 55% and 40% and returns on total assets of 8% and 11%, respectively. Which firm has a greater return on equity?
Knowing that at the instant shown bar AB is rotating counterclockwise and that the magnitude of the velocity of the midpoint of bar BC is 7.8 ft/s, determine(a) The angular velocity of bar AB,(b) The...
With reference to Exercise 4.88, find the variance of the probability distribution using (a) the formula that defines $\sigma^{2}$; (b) the special formula for the variance of a binomial...
Hart Enterprises recently paid a dividend, D0, of $1.25. It expects to have non-constant growth of 20% for 2 years followed by a constant rate of 5% thereafter. The firms required return is 10%. a....
You wish to test if two population means are equal to each other, against an alternative that they are different. You may assume equal variances. You have two samples n1-12 and n2-12. What is the...
Kara is opening up a new daycare business in her home. She needs $6500 to purchase toys and a backyard playset. Kara makes a 10% down payment and finances the balance with a 48-month fixed...
On January 1, 2009, Qix Corporation issued $400,000 of 7% bonds, due in 10 years. The bonds were issued for $372,816, and pay interest each July 1 and January 1. Qix uses the effective interest...
Izzy Corporation issued $400,000 of 7% bonds on November 1, 2009, for $429,757. The bonds were dated November 1, 2009, and mature in 10 years, with interest payable each May 1 and November 1. Izzy...
You have just borrowed $\$ 10,000$ and will be required to make monthly payments of $\$ 227.53$ for the next five years in order to fully repay the loan. What is the implicit interest rate on this...
Assume the discount rate is 1 0 % . there are two projects A and B . project A is a one year project with an investment cost of 1 0 0 0 and a cash flow of 1 4 0 0 in year one. project b is an...
What are the emerging technologies and methodologies for detecting and characterizing mutations at high resolution, and how are they advancing our understanding of mutational processes?
The interest rate is 8 % p . a . compounded monthly. A project requires an investment of $ 1 0 0 0 today. It pays $ 1 0 0 in 3 5 days, $ 2 0 0 in 6 4 days, $ 3 0 0 in 1 0 0 days, and $ 4 5 0 in 3 0 0...
In order to raise money for a large capital purchase, Starbucks, Inc. decided to issue 20-year semi-annual bonds with a 7% annual coupon. Now, 10 years into the bond term, the bonds are selling for...
You obtain a $ 2 6 4 , 0 0 0 home loan with an APR of 3 . 7 % and monthly payments over 3 0 years. Suppose that immediately after you make your 2 6 th monthly payment, you decide to sell the house...
The following features are advertised by SAGE as being available within its job costing software module: l Define and track all cost elements of every job. With up to 10 analysis codes you can...
Use the following data to answer the next two (2) questions: Product 1 Product 2 Product 3 Direct Material Cost $25,000 $30,000 $35,000 Direct Labor Cost $30,000 $40,000 $50,000 Direct Labor Hours...
Give the decoding key for the encoding keys in Problems 2536. Add 11, multiply by 5.
The following selected information is from Ellerby Companys comparative balance sheets. The income statement reports depreciation expense for the year of $ 18,000. Also, furniture costing $ 52,500...
The following selected information is from the Princeton Companys comparative balance sheets. The companys net income for the year ended December 31, 2013, was $ 48,000. 1. Compute the cash received...
Furniture costing $ 55,000 is sold at its book value in 2013. Acquisitions of furniture total $ 45,000 cash, on which no depreciation is necessary because it is acquired at year- end. What is the...
Before you begin your website, go online and research what you consider best practices in web design. Find websites for three businesses similar to yours. Analyze them by considering the following:...
Assume that part of accounts and other receivables on Thompson Toys' February 2 , 2 0 1 0 , balance sheet is comprised of $ 4 3 , 2 2 5 , 0 0 0 of notes receivable. Two notes make up the amount. The...
The Dairy Division of Famous Foods, Inc. produces and sells milk to outside customers. The operation has the capacity to produce 200,000 gallons of milk a year. Last year's operating results were as...

Assume the bonds in BE12-16 were issued for $429,757 and the effective interest rate is 6%. Prepare

Question:

Step by Step Answer:

a Cash 429757 Bonds Payable 400000 Premium on Bonds Payabl...View the full answer

Intermediate Accounting principles and analysis

Students also viewed these Accounting questions