On July 1, 2019 Star Inc. issued a $756,000, 7%, five-year bond. Interest is to be...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
On July 1, 2019 Star Inc. issued a $756,000, 7%, five-year bond. Interest is to be paid annually. Assume Star Inc. has a year end of August 31, and the market interest rate is 9%. A partial payment schedule is shown below. Period Ending July 1, 2019 June 30, 2020 Payment 52,920 Interest 9% 62,745 Amortization of Discount 9,825 Balance 697,164 706,989 Record the following entries into the journal: a. The adjusting entry to accrue bond interest and discount amortization on August 31, 2019. b. The payment of interest on June 30, 2020. On July 1, 2019 Star Inc. issued a $756,000, 7%, five-year bond. Interest is to be paid annually. Assume Star Inc. has a year end of August 31, and the market interest rate is 9%. A partial payment schedule is shown below. Period Ending July 1, 2019 June 30, 2020 Payment 52,920 Interest 9% 62,745 Amortization of Discount 9,825 Balance 697,164 706,989 Record the following entries into the journal: a. The adjusting entry to accrue bond interest and discount amortization on August 31, 2019. b. The payment of interest on June 30, 2020.
Expert Answer:
Answer rating: 100% (QA)
a The adjusting entry to accrue bond interest and discount amortization on August 31 2019 Since were given an annual interest rate of 9 and the face v... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
Students also viewed these accounting questions
-
On June 1, 2014, MacDougall Corporation approached Silverman Corporation about purchasing a parcel of undeveloped land. Silverman was asking $240,000 for the land and MacDougall saw that there was...
-
On June 1, 2011, MacDougall Corporation approached Silverman Corporation about purchasing a parcel of undeveloped land. Silverman was asking $240,000 for the land and MacDougall saw that there was...
-
1. Two football fans are listening to the Grey Cup game on the radio, one in Montreal, where the game is being played, the other in Vancouver, 3692 km away. How much sooner does the Montreal fan hear...
-
Outline a research on career options using electronic libraries/databases, then write about your chosen career. There are numerous career options available to business and finance graduates. You can...
-
A small nonprofit organization is planning a door-to-door marketing campaign to sell Christmas wrapping and gifts. They plan to visit 10 homes. Consultants have estimated that they should expect to...
-
What is the difference between the $t$ distribution and the normal distribution?
-
Budget Tax Service, Inc prepares tax returns for small businesses. The cost of preparing 800 tax returns in the prior year was: Direct labor ............ $320,000 Variable overhead ..............
-
In your personal and professional life, you will use math for many reasons.Discuss the following with your classmates:Pick three concepts you learned this week and explain why they are important for...
-
The following data is provided for Garcon Company and Pepper Company for the year ended December 31. Garcon Company $ 12,000 14,500 7,250 27,000 19,000 17,650 22,000 Finished goods inventory,...
-
17. The statements of financial position of Stiles Limited as at 31 December 2023 and 2022 and a summary of the income statement for the year ended 31 December 2023 appear below: Statements of...
-
A fluidized bed is used in the production of aniline by the hydrogenation of nitrobenzene. Single-stage cyclones, followed by candle filters, are used to remove fines from the gases leaving the...
-
Current assets are listed: a. in the reverse order of expected conversion to cash. b. by importance. c. by longevity. d. by size.
-
The order of the accounts in the ledger is: a. assets, revenues, expenses, liabilities, share capitalordinary, dividends. b. assets, liabilities, share capitalordinary, dividends, revenues, expenses....
-
Explain how a ledger and posting help in the recording process.
-
During 2025, Xia Lin Companys assets decreased 500,000 and its liabilities decreased 900,000. Its equity therefore: a. increased 400,000. b. decreased 1,400,000. c. decreased 400,000. d. increased...
-
Sakshi sells a watch at a gain of 15%. If she had bought it at 10% less and sold it for Rs. 3.5 less, she would have gained 20%. Find the cost price of the article? 1. Rs. 50 2. Rs. 60 3. Rs. 100 4....
-
If a force of F = 50 Ib is applied to the pads at A and C, determine the smallest dimension d required for equilibrium if the spring has an unstretched length of 1 ft. B 1 ft 1 ft F k = 15016/fr 1ft...
-
Under what circumstance can one corporation control another without owning a majority of the controlled corporations voting shares?
-
The SCI for 20X3 for Hilary Co., expressed in Coker francs (CF), is as follows: Sales revenue.................................. CF 3,000,000 Cost of goods sold: Beginning...
-
On May 5, 20X5, Sugluk Corp. purchased inventory from a Japanese supplier and gave the supplier a 90-day note for 40,000,000. On the same date, Sugluk entered a forward contract with its bank to...
-
According to research on ethics in the workplace, _________ is/are often a major and frequent source of pressures that create ethical dilemmas for people in their jobs. (a) declining morals in...
-
A business owner makes a decision to reduce a plants workforce by 10% in order to cut costs and be able to save jobs for the other 90% of employees. This decision could be justified as ethical using...
-
If a manager fails to enforce a late-to-work policy for all workersthat is, by allowing some favored employees to arrive late without penaltiesthis would be considered a violation of _________. (a)...
Study smarter with the SolutionInn App