(Entries for Bond TransactionsEffective-Interest) Assume the same information as in E14-4, except that Foreman Company uses the...
Question:
(Entries for Bond Transactions—Effective-Interest) Assume the same information as in E14-4, except that Foreman Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%. Prepare the journal entries to record the following. (Round to the nearest dollar)
(a) The issuance of the bonds.
(b) The payment of interest and related amortization on July 1, 2011.
(c) The accrual of interest and the related amortization on December 31, 2011.
Step by Step Answer:
a 1111 b 7111 Cash 800000 X 102 Bonds Payable Premium on Bonds Payable Interest Expense 816000 ...View the full answer
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Related Video
A journal entry is an act of keeping or making records of any transactions either economic or non-economic. Transactions are listed in an accounting journal that shows a company\'s debit and credit balances. The journal entry can consist of several recordings, each of which is either a debit or a credit
Students also viewed these Accounting questions
-
Assume the same information as in E1412. Minor Inc. sells 10% bonds having a maturity value of $3 million for $2,783,724. The bonds are dated January 1, 2011, and mature on January 1, 2016. Interest...
-
Assume the same information as in BE8-9. Young Inc.'s financial difficulties are over. On June 4, 2014, Perry Co. receives a payment in full of $5,500 from Young Inc. Record this transaction.
-
Assume the same information as in BE8-9. Tokarik Inc.'s financial difficulties are over. On June 4, 2017, Perry Co. receives a payment in full of $5,500 from Tokarik Inc. Record this transaction.
-
Jane Grimes, retail fruit and vegetable merchant, does not keep a full set of accounting records. However, the following information has been produced from the business's records: 1. Summary of the...
-
Would a firm earning zero economic profit continue to produce, even in the long run?
-
A U.S.-based company, IBC, has wholly owned subsidiaries across the world. IBC is in the medical products market and sources most of its sales of medical devices from the United States, but sells...
-
Under the random utility interpretation, an individual with utility \(U_{i j}=\) \(u_{i}\left(V_{i j}+\epsilon_{i j} ight)\), where \(j\) may be 1 or 2 , selects category corresponding to \(j=1\)...
-
A rural clinic hires its staff from nearby cities and towns on a part-time basis. The clinic attempts to have a general practitioner (GP), a nurse, and an internist on duty during at least a portion...
-
(a) Identify and describe current trends or socio-economic situations in the marketing an environment that will influence consumers to adopt or not adopt this product in the near future, in the next...
-
The force F acts on the bracket within the octant shown. If the magnitudes of the x and z components of F are F x = 300 N and F z? = 600 N, respectively and ? = 60 o , determine the magnitude of F...
-
(Entries for Bond TransactionsStraight-Line) Foreman Company issued $800,000 of 10%, 20-year bonds on January 1, 2011, at 102. Interest is payable semiannually on July 1 and January 1. Foreman...
-
(Amortization SchedulesStraight-Line) Spencer Company sells 10% bonds having a maturity value of $3,000,000 for $2,783,724. The bonds are dated January 1, 2010, and mature January 1, 2015. Interest...
-
a. Wireless technology allows you to respond to customers requests, change sales forecasts, and manage suppliers while you are away from the office. b. Wireless technology allows you to respond to...
-
Megan Murphy and Joseph McGoldrick began dating in July 2010 and eventually decided to marry. In late 2016, Megan and Joseph decided to purchase a home for \($205,000.\) Because Joseph had the...
-
Bill Bhaskar owned a medical practice, Bill Bhaskar, M.D., Inc. Bhaskar was approached by Abdul S. Walji and his company, Calpension, Inc., soliciting his business as Employee Benefit Consultants...
-
Patco Construction Company was a customer that had an account at Ocean Bank. Patco argued that its account was subject to the authorization of six fraudulent withdrawals from the account after a...
-
In November 2007, Shirley Bolden entered into a conditional sales contract, which was assigned to M&T Bank, for the purchase of a Mercedes-Benz automobile. Bolden took physical possession of the car,...
-
Wayne and Lanae Grantham (Debtors) filed for Chapter 7 bankruptcy. Wayne Grantham filed a certificate of credit counseling, but Lanae Grantham did not. Instead, the Debtors filed a motion seeking to...
-
Consider two risky assets with returns \(\tilde{r}_{1}, \tilde{r}_{2}\), with corresponding expected returns \(e_{1}, e_{2}\), variances \(\sigma_{1}^{2}, \sigma_{2}^{2}\) and correlation \(ho\). Let...
-
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19 year-old nanny $125 per week for 48 weeks during the current year. a. What is the employers portion of...
-
Convert 0101 (Gray code) to its binary number equivalent.
-
Ben Sisko Supply Company, a newly formed corporation, incurred the following expenditures related to Land, to Buildings, and to Machinery and Equipment. Instructions Determine the amounts that should...
-
Harrisburg Furniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $5,000,000 on January 1, 2014. Harrisburg expected to complete...
-
On December 31, 2013, Main Inc. borrowed $3,000,000 at 12% payable annually to finance the construction of a new building. In 2014, the company made the following expenditures related to this...
-
Large-scale industrial production - accompanied by massive technological change, expanding international communication networks, and pro-growth government policies-generated rapid economic...
-
How can this relate to individuals who have had a TBI and are currently homeless or marginally housed?
-
1. According to Marxian theory, are crises an economic process inherent to the accumulation dynamics of current capitalism? Justify your answer. 2. According to Marxian theory, what do you consider...
Study smarter with the SolutionInn App