Lorance Corporation issued $400,000, 7%, 20-year bonds on January 1, 2022, for $360,727. This price resulted in
Question:
Lorance Corporation issued $400,000, 7%, 20-year bonds on January 1, 2022, for $360,727. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Lorance uses the effective-interest method to amortize bond premium or discount.
Instructions
Prepare the journal entries to record the following. (Round to the nearest dollar.)
a. The issuance of the bonds.
b. The accrual of interest and the discount amortization on December 31, 2022.
c. The payment of interest on January 1, 2023.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (8 reviews)
a The journal entry for the issuance of the bonds i...View the full answer
Answered By
James Warinda
Hi! I’m James Otieno and I'm an experienced professional online tutor with countless hours of success in tutoring many subjects in different disciplines. Specifically, I have handled general management and general business as a tutor in Chegg, Help in Homework and Trans tutor accounts.
I believe that my experience has made me the perfect tutor for students of all ages, so I'm confident I can help you too with finding the solution to your problems. In addition, my approach is compatible with most educational methods and philosophies which means it will be easy for you to find a way in which we can work on things together. In addition, my long experience in the educational field has allowed me to develop a unique approach that is both productive and enjoyable.
I have tutored in course hero for quite some time and was among the top tutors awarded having high helpful rates and reviews. In addition, I have also been lucky enough to be nominated a finalist for the 2nd annual course hero award and the best tutor of the month in may 2022.
I will make sure that any student of yours will have an amazing time at learning with me, because I really care about helping people achieve their goals so if you don't have any worries or concerns whatsoever you should place your trust on me and let me help you get every single thing that you're looking for and more.
In my experience, I have observed that students tend to reach their potential in academics very easily when they are tutored by someone who is extremely dedicated to their academic career not just as a businessman but as a human being in general.
I have successfully tutored many students from different grades and from all sorts of backgrounds, so I'm confident I can help anyone find the solution to their problems and achieve
0.00
0 Reviews
10+ Question Solved
Related Book For
Accounting Principles
ISBN: 9781119707110
14th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Jill E. Mitchell
Question Posted:
Students also viewed these Business questions
-
Find the measures of the angles of the triangle whose vertices are A=(-2,0), B=(2,3), and C=(2, -3). The measure of ZABC is. (Round to the nearest thousandth.)
-
A pair of points is given. (0, 8), (3, 0) (b) Find the distance between them. (c) Find the midpoint of the segment that joins them. (x, y) = ------- Find an equation of the circle that satisfies the...
-
Which of the following is a good example of neuronal control of behaviour? 1) Over generations of breeding silver foxes have become less fearful or people. 2) Progesterone in mice suppresses parental...
-
Considering all of the below, recommend and justify a price for this deal. This is not easy to do. Put yourself in the shoes of the Robertson managers. Who wants it more? The buyer-Monmouth? The...
-
Statistics Canada reported that at the end of the first quarter of 2011, the federal governments debt was $550 billion. During that quarter, the government received $59 billion in revenue and spent...
-
Henri Mikels and Alex Jamison are watch repairmen who want to form a partnership and open a jewelry store. They have an attorney prepare their partnership agreement, which indicates that assets...
-
The Peoples National Bank raised capital through the sale of \(\$ 100\) million face value of four percent coupon rate, ten-year bonds. The bonds paid interest semiannually and were sold at a time...
-
The CCC (triple C) Venture has issued convertible preferred stock to its venture investors. Each share of preferred stock is convertible into 0.80 shares of common stock and pays an annual cash...
-
Case study. Boatrite Manufacturing Auditing. As an auditor, you and the firm you work for have little experience in both the shipping and anodes industries. How does this impact your ability to...
-
You are the controller for Attrex Corp. Your staff has prepared an income statement for the current year and has developed the following additional information by analysing the changes in the...
-
LRNA Company issued $380,000, 7%, 10-year bonds on January 1, 2022, for $407,968. This price resulted in an effective-interest rate of 6% on the bonds. Interest is payable annually on January 1. LRNA...
-
De Weese Corporation issues $400,000 of 8%, 5-year bonds on January 1, 2022, at 105. Assuming that the straight-line method is used to amortize the premium, what is the total amount of interest...
-
A stepped bar is clamped at both ends. A force of \(F=10,000 \mathrm{~N}\) is applied as shown in the figure. Areas of cross sections of the two portions of the bar are \(1 \times 10^{-4}...
-
Given the weighted quadratic loss function L(0, d) = w(0) (0 d) with w(0)> 0 for all 0 = R. Determine dmin such that the posterior risk is minimized and interpret the solution. Hint: The order of...
-
Joanette, Incorporated, is considering the purchase of a machine that would cost $670,000 and would last for 10 years, at the end of which, the machine would have a salvage value of $57,000. The...
-
explain how to win the game as well as the questions listed below on the difference in leaders. For example, if it was easier for the Israel leader to secure peace? What was the impact of the level...
-
Exercise 13-12 (Algo) Volume Trade-Off Decisions [LO13-5] Benoit Company produces three products-A, B, and C. Data concerning the three products follow (per unit): Selling price Variable expenses:...
-
Find d ^ 2 y / dx ^ 2 for the given function. y = 6 sin ( 4 x + 9 )
-
Identify each of the following reconciling items as: (a) an addition to the cash balance according to the bank statement, (b) a deduction from the cash balance according to the bank statement, (c) an...
-
In a paragraph of approximately 150-200 words, analyze a film or TV/Streaming Show poster of your choosing by focusing on the ways in which representations in the poster are gendered. Include an...
-
You recently received a letter from your Uncle Frank. A portion of the letter is presented below. You know that I have a significant amount of money I saved over the years. I am thinking about...
-
You recently received a letter from your Uncle Frank. A portion of the letter is presented below. You know that I have a significant amount of money I saved over the years. I am thinking about...
-
Drew Carey Corporation reported the following amounts in 2009, 2010, and 2011. Instructions (a) Identify and describe the three tools of financial statement analysis. (b) Perform each of the three...
-
Sugar Skull Corporation uses no debt. The weighted average cost of capital is 8.8 percent. The current market value of the equity is $17.4 million and the corporate tax rate is 24 percent. What is...
-
how to apply this in a piviot table Element #1: Total Sales Revenue by Region for the Current Year Create a static bar chart that presents total Sales revenue by sales region for the current year
-
Problem 7-9 Calculating the Total Cost of a Purchase, the Monthly Payment, and an APR [LO7-2] After visiting several automobile dealerships, Richard selects the used car he wants. He likes its...
Study smarter with the SolutionInn App