On January 1, 2014, Tonika Corporation issued a four-year, $11,200, 7% bond. The interest is payable annually

Fantastic news! We've Found the answer you've been seeking!

Question:

On January 1, 2014, Tonika Corporation issued a four-year, $11,200, 7% bond. The interest is payable annually each December 31. The issue price was $10,268 based on an 8% effective interest rate. Assuming the effective-interest amortization is used, and rounding calculations to the nearest whole dollar, which of the following journal entries correctly records the 2014 interest expense?

Interest expense	763
Discount on bonds payable	56
Cash		819

Interest expense	873
Discount on bonds payable		54
Cash		819

Interest expense	819
Cash		819

Interest expense	997
Discount on bonds payable		178
Cash		81

Related Book For answer-question

Survey of Accounting

ISBN: 978-0077862374

4th edition

Authors: Thomas Edmonds, Christopher, Philip Olds, Frances McNair, Bor

See More Books

Posted Date: Jan 06, 2021 06:11 AM

See More Questions

1. Which of the following journal entries correctly records the current month's activity where $60,000 of direct material and $17,000 of indirect materials were used in the production process? 2....
Which of the following journal entries would probably be made if the modified cash basis of accounting for warranties is in use for a sale made in 2016? A. 2016 Cash XX Sales XX Unearned Warranty...
On January 1, 2014, Novotna Company purchased $432,800, 8% bonds of Aguirre Co. for $383,865. The bonds were purchased to yield 11% interest. Interest is payable semiannually on July 1 and January 1....
1- The z-axis carries filamentary current of 10. A. Find Hat (-3,74,0) ? p= = = 2- The Y-axis carries filamentary current of 10 A. Find H at (-3,4,1) ? p= ,= = p= , = H p= 3- The X-axis carries...
If a retail area is acknowledged to be "saturated," what does this signify for existing retailers? For prospective retailers considering this area?
An average active person consumes above 2500 Cal a day. (a) What is this in joules? (b) What is this is kilowatt-hours? (c) Your power company charges about a dime per kilowatt-hour. How much would...
Im gathering some information about the sales/collection process and how it is supposed to work. Okay?
In recent years, Freeman Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus,...
A system consisting of a small 1.20-kg object attached to a Ax(cm) light spring oscillates on a smooth, horizontal surface. A 5.00- graph of the position x of the object as a function of time is 4.00...
P6. (6 pts) Consider a generator of a CRC scheme 1010011 (i.e., x6+x++x+1). The message is 00110011 10001010. Answer the following questions. a. Compute the CRC bits for this packet (ignoring all...
Design a portfolio of put and/or call options and/or stocks and/or bonds that has the following payoff diagram at maturity (exactly one year from now): Payoff $20 $20 $40 Stock Price Specify exactly...
You are the CEO of a company based in Abu Dhabi that imports fresh dates from South Africa to be processed at a site each in the United Arab Emirates, Saudi Arabia, Lebanon, Oman, and Kuwait. The...
Use the information given in question 50 to find the proportion of viewers who will be able to recall the commercial after 7 days. Question 50 An advertising executive believes that the length of...
In a taste test using 400 randomly selected people, 220 preferred a new brand of coffee to the leading brand. Test, at the 1 % significance level, the alternative hypothesis that at least 52 % prefer...
Hardluck Inc. is insolvent. Its liabilities exceed its assets by $13 million. Blank, its president, and other family members own Hardluck. Blank, whose assets are estimated at less than $1 million,...
Among other provisions, a Chapter 11 plan of reorganization must a. Rank claims according to their liquidation priorities. b. Not impair claims of secured creditors. c. Provide adequate means for the...
Explain the concept of speed .What are the units of speed? What does a speed of 5m/s mean?
What are the two methods used to translate financial statements and how does the functional currency play a role in determining which method is used?
During 2014, Crest Corporation earned $ 5,000 of cash revenue and accrued $ 3,000 of salaries expense. Required Based on this information alone: a. Prepare the December 31, 2014, balance sheet. b....
On January 1, 2014, Purvis and Associates issued bonds with a face value of $800,000, a stated rate of interest of 8 percent, and a 20-year term to maturity. Interest is payable in cash on December...
On January 1, 2014, Seaside Enterprises issued bonds with a face value of $60,000, a stated rate of interest of 8 percent, and a five-year term to maturity. Interest is payable in cash on December 31...
Interview three heads of household, each from a household representing a different stage of the life cycle orsocioeconomic status. Inquire about their financial planning process and their strategies...
Jimmy, an accountant, and Bethany just returned from their honeymoon in the Bahamas. They celebrated their marriage and the completion of Bethany's M.B.A. program. They have been encouraged by their...
Review the six financial accomplishments that may result from studying personal finance. In your opinion, which three are most important? Why?

On January 1, 2014, Tonika Corporation issued a four-year, $11,200, 7% bond. The interest is payable annually

Question:

Expert Answer:

On January 1 2014 Tonika Corporation issued a fouryear 11200 7 bond The ... View the full answer

Survey of Accounting

Students also viewed these accounting questions