On May 1, Saxophone Corp. issued $300,000, 9%, 10-year bonds for $281,307 when the market rate was
Question:
On May 1, Saxophone Corp. issued $300,000, 9%, 10-year bonds for $281,307 when the market rate was 10%. Prepare the general journal entry for the first semiannual interest payment and bond discount amortization on November 1, using the effective interest method.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 47% (17 reviews)
DATE GENERAL JOURNAL DESCRI...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Question Posted:
Students also viewed these Accounting questions
-
On January 1, when the market rate of interest was 5% for similar bonds, a company issued a $15,000,000, 5%, 10-year bond that pays semiannual interest on June 30 and December 31, receiving cash of...
-
On January 1, 2019, when the market rate for bond interest was 14%, Lenoir Corporation issued bonds in the face amount of $500,000 with interest at 12% payable semiannually. The bonds mature on...
-
Bonds sell at a premium when the market rate of interest is: less than the bond's coupon rate. greater than the bond's coupon rate. equal to the bond's coupon rate. None of the above is true.
-
Baseball Magazine, a domestic corporation, markets pictures of baseball players on its website. Its database server is in the Cayman Islands. Baseball fans access the Web page and use their credit...
-
From the first e-Activity, determine at least two (2) AICPA Professional Conduct principles that are most likely to be violated. Provide a rationale to support your response. From the second...
-
Jerrys Jellies sells one-and two-year mail-order subscriptions for its jelly-of-the-month business. Subscriptions are collected in advance. An analysis of the recorded sales activity revealed the...
-
Which one of the following costs is not included in inventory for manufacturing firms? a. Raw materials used in production b. Raw materials unused and stored in the warehouse c. Salary paid to the...
-
Granny Carney Associates surveys American eating habits. The companys accounts include Land, Buildings, Office Equipment, and Communication Equipment, with a separate Accumulated Depreciation account...
-
Roberta Bondar is travelling in her space craft around a distant planet. The planet has a radius R' and she is at an altitude of 2R' above its surface, coasting at some constant speed in a circular...
-
The top music genres according to SoundScan for a recent year are R&B, Alternative (Rock), Rap, and Country. These and other music genres along with the number of albums sold in each (in millions)...
-
BOND PREMIUM AMORTIZATION Fields Company sold an issue of $800,000, 10%, 10-year bonds for $852,032 on March 1. The interest is payable semiannually on September 1 and March 1. The market rate of...
-
BOND DISCOUNT AMORTIZATION Zee Company sold an issue of $500,000, 9%, 10-year bonds for $468,845 on April 1. The interest is payable semiannually on October 1 and April 1. The market rate of interest...
-
Why and how do e-marketers evaluate the quality of information on a Web site?
-
Simplify. Write your answers without exponents. 64 2 3 25 3 = 0 X
-
suppose E(rm)= 10% risk free= 5% security a: beta -0.2, offers an expected return=2.5% security b: beta 1.5, offers an expected return=15% What security is underpriced and which is over priced?
-
Brown Corporation has the following items for Year 1. Its income statement is as follows. Income Sales Cost of goods sold Gross Profit Dividends received from stock investments in Less than 20% owned...
-
The thread system in Modula-3 uses mutexes and condition variables to control concurrency. An alternative scheme would be to use message passing. Each message-passing channel would be an object with...
-
Conduct an analysis of its effect on the accounting financial statements. Income statement Lease Technical corrections Answer the following questions: What are FASBs and what role do they play with...
-
If prices are sticky and the number of dollars of gross investment unexpectedly increases, the _________ curve will shift _________. a. AD; right b. AD; left c. AS; right d. AS; left
-
Suppose you won a financial literacy competition and are given FJS10000 to invest, with the condition that investment can be done either in, i) Invest in Unit trust of Fiji or Invest in Fijian...
-
From the following balance sheet, prepare consolidated balance sheet of Simple Limited (SL) that has one subsidiary namely ML. ML had a credit balance of 45,000 in its profit and loss account as on...
-
Williams Mechanic Services prepared for the following work sheet for the year ended March 31, 20. Required 1. Complete the work sheet. 2. Prepare an income statement. 3. Prepare a statement of...
-
After the accountant posted the adjusting entries for M. Wally, Designer, the work sheet contained the following account balances on May 31: Required 1. Write the owners name on the Capital and...
-
The partial work sheet for Emil Consulting for June is as follows: Required 1. Write the owners name on the Capital and Drawing T accounts. 2. Record the account balances in the T accounts for owners...
-
Assume we trained 4 binary classification models on the same dataset and got the following decision boundaries: b. Which of those models shows undefitting or overfitting behavior?
-
What is the output of the following snippet? def fun(x): if x % 2 == 0: return 1 else: return 2 print(fun(fun(fun(2))))
-
1. This is the map of UUM Main Campus (Sintok) to show related distances (in kilometres) from the Main Gate to the Varsity Mall. Main Gate TISSA [1.5] Anjung Tamu 12.51 INASIS Tradewinds [0.3] [0.5]...
Study smarter with the SolutionInn App