On March 1, 2011, Wurt Corporation issued $2,400,000 of 10 percent, five-year bonds. The semiannual interest payment
Question:
On March 1, 2011, Wurt Corporation issued $2,400,000 of 10 percent, five-year bonds. The semiannual interest payment dates are February 28 and August 31. Because the market rate for similar investments was 11 percent, the bonds had to be issued at a discount. The discount on the issuance of the bonds was $97,340. The company’s fiscal year ends February 28. Prepare journal entries to record the bond issue on March 1, 2011, and the payment of interest and the amortization of the discount on August 31, 2011 and on February 28, 2012. Use the effective interest method.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
2011 Mar 1 Cash 2012 Feb Unamortized Bond Discount Bond...View the full answer
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
-
IF A & B are two partner, A partner 30,000 capital and the same amount for B. they agree to enter new partner C what are the amount should C pay for having 50% of Total capital Select one: a. 30,000...
-
On March 1, 2011, a U.S. company made a credit sale requiring payment in 30 days from a Malaysian company, Hamac Sdn. Bhd., in 20,000 Malaysian ringgits. Assuming the exchange rate between Malaysian...
-
Prepare journal entries to record the following events. Identify every fund(s) or group of accounts in which an entry is made. a. The city authorized the construction of a city hall to be financed by...
-
Consider the following population regression model: y = Bo + Bx + Bx2 + 3x3 + u Suppose you want to test whether 0.532 = 83. The hypotheses are: Ho : 0.582 = 33 H : 0.532 #33 The correct expression...
-
A house is maintained at 21C in winter by electric resistance heaters. If the outdoor temperature is 9C, the second-law efficiency of the resistance heaters is (a) 0% (b) 4.1% (c) 5.7% (d) 25% (e)...
-
On September 1, 2017, Wong Corporation, which uses ASPE, signed a five-year, non-cancellable lease for a piece of equipment. The terms of the lease called for Wong to make annual payments of $13,668...
-
Using the method of subregions, derive an equation for the transverse modulus, \(E_{2}\), for the RVE, which includes a fiber/matrix interphase region, as shown in Figure 3.27. Matrix Fiber Sed d...
-
Buckaroo Company and Yearling Company entered into the following transactions: a. Buckaroo Company sold merchandise to Yearling Company for $135,000, terms 2/10, n/30. b. Prior to payment, Yearling...
-
A glass window is 2.0 m wide and 1.5 m high and 7.5 mm thick. The temperature of the inner surface is 18 C and that of the outer surface is 11 C. (a) Find the rate of heat flow through the window....
-
A viscous film drains uniformly down the side of a vertical rod of radius R. At some distance down the rod, the film approaches a terminal or fully developed flow such that the film thickness, h, is...
-
Cute Toy Company sold $250,000 of 9.5 percent, 20-year bonds on April 1, 2011, at 106. The semiannual interest payment dates are March 31 and September 30. The market interest rate is 8.9 percent....
-
The Maruska Corporation has outstanding $800,000 of 8 percent bonds callable at 104. On September 1, immediately after recording the payment of the semiannual interest and the amortization of the...
-
Use the Web as a resource to investigate MPEG-2 [or MPEG-4]. Explain the data compression algorithm used by MPEG-2 [or MPEG-4].
-
Favorite musical group Classify the variable as qualitative or quantitative.
-
Address Classify the variable as qualitative or quantitative.
-
Number of coins in a jar Determine whether the quantitative variable is discrete or continuous.
-
Phone number Classify the variable as qualitative or quantitative.
-
Number of cars owned Classify the variable as qualitative or quantitative.
-
(a) Two amides are constitutional isomers and have the formula C 4 H 9 NO, and each contains an isopropyl group as part of its structure. Give structures for these two isomeric amides. (b) Draw the...
-
An 8.0 kg crate is pulled 5.0 m up a 30 incline by a rope angled 18 above the incline. The tension in the rope is 120 N, and the crates coefficient of kinetic friction on the incline is 0.25. a. How...
-
The computational efficiency is sometimes also measured in terms of billions of operations per second per watt. How is this different from the figure of merit used in Fig. 3.65? 0.001 1990 10 0.1...
-
Elm Company had total assets of $640,000 in 2012, $680,000 in 2013, and $760,000 in 2014. In 2013, Elm had net income of $77,112 on revenues of $1,224,000. In 2014, it had net income of $98,952 on...
-
Using the data from the financial statements of Stanford, Inc., that follow compute the companys cash flow yield, cash flows to sales, cash flows to assets, and free cash flow. (Round to one decimal...
-
At the end of its first year of operations, a company calculated its ending merchandise inventory according to three different accounting methods, as follows: FIFO, $47,500; average-cost, $45,000;...
-
An automobile cooling system holds 16 L of water. How much heat does it absorb if its temperature rises from 20 C to 80 C? A 5.0 kg lead ball is dropped into a 2.0 L insulated pail of water initially...
-
A 15.0 kg box is allowed to slide from rest down a ramp that makes an angle of 30.0 o to the horizontal. The coefficient of friction between the box and the ramp is 0.400 and the ramp is 5.00 m long....
-
1. A bowling ball rolls without slipping up a ramp that slopes upward at an angle beta to the horizontal. Treat the ball as a uniform, solid sphere, ignoring the finger holes. What is the...
Study smarter with the SolutionInn App