Kemper Company plans to issue 6% bonds on January 1, 2011, with a par value of $1,000,000. The company sells $900,000 of the bonds on January 1, 2011. The remaining $100,000 sells at par on March 1, 2011. The bonds pay interest semiannually as of June 30 and December 31. Record the entry for the March 1 cash sale of bonds.
Answer to relevant QuestionsLauren Wright, an employee of ETrain.com, leases a car at O’Hare airport for a three-day business trip. The rental cost is $350. Prepare the entry by ETrain.com to record Lauren’s short-term car lease cost.On January 1, 2011, Kidman Enterprises issues bonds that have a $1,700,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.1. How much interest will ...Oneil Company issues 5%, two-year bonds, on December 31, 2011, with a par value of $100,000 and semiannual interest payments. Use the following straight-line bond amortization table and prepare journal entries to record (a) ...Ramirez Company is considering a project that will require a $500,000 loan. It presently has total liabilities of $220,000, and total assets of $620,000.1. Compute Ramirez’s (a) Present debt-to-equity ratio and (b) The ...Refer to the bond details in Problem 14-4A.Required1. Compute the total bond interest expense over the bonds’ life.2. Prepare an effective interest amortization table like the one in Exhibit 14B.2 for the bonds’ life.3. ...
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