2: On May 1st, 2021, Tyler Corp. issued $400,000, 12% bonds maturing on April 1, 2031...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
2: On May 1st, 2021, Tyler Corp. issued $400,000, 12% bonds maturing on April 1, 2031 when the market rate was 10%. These bonds pay interest every October 31 and April 30. Tyler Corp's year end is December 31. Assuming Tyler uses the effective interest method, prepare the journal entry to record the issuance, and prepare an amortization schedule for the first 2 years of the bonds' lives. Finally, prepare the journal entry to be made on December 31, 2021 and December 31, 2022. 46 47 48 49 50 Problem 3: 51 52 53 54 55 56 57 58 59 60 61 62 On October 31, 2020, Hogwart's Corp. issued a 7% installment note for a shipment of cauldrons and brooms. The market value of the shipment on October 31 was $215,000. The agreement called for 6 annual payments of $45,106 beginning on October 31, 2021. Prepare the journal entry for the date of issuance and the journal entries for the first three payment dates. 2: On May 1st, 2021, Tyler Corp. issued $400,000, 12% bonds maturing on April 1, 2031 when the market rate was 10%. These bonds pay interest every October 31 and April 30. Tyler Corp's year end is December 31. Assuming Tyler uses the effective interest method, prepare the journal entry to record the issuance, and prepare an amortization schedule for the first 2 years of the bonds' lives. Finally, prepare the journal entry to be made on December 31, 2021 and December 31, 2022. 46 47 48 49 50 Problem 3: 51 52 53 54 55 56 57 58 59 60 61 62 On October 31, 2020, Hogwart's Corp. issued a 7% installment note for a shipment of cauldrons and brooms. The market value of the shipment on October 31 was $215,000. The agreement called for 6 annual payments of $45,106 beginning on October 31, 2021. Prepare the journal entry for the date of issuance and the journal entries for the first three payment dates.
Expert Answer:
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
? ????????? 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 50 Use your 44 use is 45 46 47 48 49 Made sales of product Cost for the inventory that was sold Amount of the invoice (above) that returns and...
-
Prepare the journal entry to record Channel One Companys issuance of 100,000 shares of $0.50 par value common stock assuming the shares sell for: a. $0.50 cash per share. b. $2 cash per share.
-
For each company, prepare the necessary journal entry to record the exchange. (The exchange has commercial substance.) (Credit account titles are automatically indented when amount is entered. Do not...
-
Under a plan of complete liquidation, Coast Corporation distributes land with a $300,000 adjusted basis and a $400,000 FMV to William, a 25% shareholder. William has a $200,000 basis in his Coast...
-
In 2000, California enacted, with strong union support, a law that prohibits employers that receive state-funded grants of more than $10,000 from using any portion of these funds to assist, promote,...
-
A car is traveling at a constant speed of on a circular track. Is the car accelerating? Explain.
-
Calculate the following: 1. \(7.57 \times 10^{13}+2.031 \times 10^{13}\) 2. \(3.03 \times 10^{-6}-1.5 \times 10^{-6}\)
-
The following misstatements are included in the accounting records of the Joyce Manufacturing Company: 1. A shipment to a customer was not billed because of the loss of the bill of lading. 2. A sales...
-
Tha Thank you. You have run a regression of debt to capital ratios against independent variables, across all companies in the market, and arrived at the following: Debt to Capital Ratio = 0.40 +...
-
Reds Furniture Manufacturing produces a line of tables and chairs from specialty hardwoods. It makes three different styles of chairs, and each chair takes about the same amount of direct labor time...
-
Theoretically, what role does pricing play in revenue management? Pick 2 of the following to discuss by using the example: 1) How to price for a multiple customer segment market (please have one...
-
What is the logic of designing echeloned logistical structures? Can echeloned and direct structures be combined?
-
Many investors rely on highlights from the annual report as provided by online and CD-ROM-based information services and do not read the reports themselves. These services do not contain the text of...
-
Discuss the major supply chain APS applications with particular focus on the role and anticipated benefits for each application.
-
How could the relationship between the auditor and management change if conclusive proof emerged that a qualified audit report had adverse implications?
-
Discuss how error accountability can be a major factor in improving forecast performance.
-
Case Study: Richard is a 75 year old married man. His wife was diagnosed with dementia 5 years ago and has been living in long-term care for the past year. Richard has a large family in which he is...
-
Before the 1973 oil embargo and subsequent increases in the price of crude oil, gasoline usage in the United States had grown at a seasonally adjusted rate of 0.57 percent per month, with a standard...
-
Walter, a single taxpayer, purchased a limited partnership interest in a tax shelter in 1985. He also acquired a rental house in 2012, which he actively manages. During 2012, Walter's share of the...
-
Sherry Hopson owns a retail family clothing store. Her store is located at 4321 Circle Drive, Houston, TX 77001. Her employer identification number is 95- 1234321 and her Social Security number is...
-
Charlie's Green Lawn Care is a cash basis taxpayer. Charlie Adame, the sole proprietor, is considering delaying some of his December 2012 customer billings for lawn care into the next year. In...
-
You are evaluating two investments that each require $1,000. One is a municipal bond that pays 9 percent interest annually. The interest is exempt from federal and state taxes. The other is a...
-
You should buy insurance and establish an emergency fund before you invest, and you should invest early. Write About It Write several paragraphs explaining why you should take these steps before...
-
List four specific sources of financial information.
Study smarter with the SolutionInn App