On January 1, 2021, Darnell Window and Pane issued $18 million of 10-year, zero-coupon bonds for $5,795,518.
Question:
On January 1, 2021, Darnell Window and Pane issued $18 million of 10-year, zero-coupon bonds for $5,795,518.
Required:
1. Prepare the journal entry to record the bond issue.
2. Determine the effective rate of interest.
3. Prepare the journal entry to record annual interest expense at December 31, 2021.
4. Prepare the journal entry to record annual interest expense at December 31, 2022.
5. Prepare the journal entry to record the extinguishment at maturity.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 71% (7 reviews)
Requirement 1 Cash price given 5795518 Discount on bonds payable difference 12204482 Bonds payable face amount 18000000 Requirement 2 The discount rate that equates the present value of the debt 57955...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-1260481952
10th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
Question Posted:
Students also viewed these Business questions
-
On January 1, 2011, Darnell Window and Pane issued $18 million of 10-year, zero-coupon bonds for $5,795,518. Required: 1. Prepare the journal entry to record the bond issue. 2. Determine the...
-
On January 1, 2018, Darnell Window and Pane issued $18 million of 10-year, zero-coupon bonds for $5,795,518. Required: 1. Prepare the journal entry to record the bond issue. 2. Determine the...
-
On January 1, 2021, Georgetown Distributors borrowed $2,180,000 by issuing 4-year, zero coupon bonds. The face value of the bonds is $3,000,000. Georgetown uses the straight-line method to amortize...
-
MVP Company issued a callable bond. The bond is a 7% semiannual coupon bond currently priced at 102 that has a remaining time to maturity of seven years. The bond is callable beginning the end of...
-
Identify the domain and range of cos y = x and y = cos-1 x.
-
According to Nielsen Media Research, the average number of hours of TV viewing by adults (18 and over) per week in the United States is 33 hours. Suppose the standard deviation is 7.9 hours and a...
-
How many forms of main() are there?
-
For the past several years, Shane Banovich has operated a part-time consulting business from his home. As of October 1, 2012, Shene decided to move to rented quarters and to operate the business as...
-
Ruler Formula Bar Normal Page Break Page Custom Preview Layout Views Gridlines Headings Zoom 100% Zoom To Selection Window Macros Workbook Views Show Zoom Macros A A1 V A B D E F G H 4 Assume That...
-
Write a function matched(s) that takes as input a string s and checks if the brackets "(" and ")" in s are matched: that is, every "(" has a matching ")" after it and every ")" has a matching "("...
-
When Patey Pontoons issued 6% bonds on January 1, 2021, with a face amount of $600,000, the market yield for bonds of similar risk and maturity was 7%. The bonds mature December 31, 2024 (4 years)....
-
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity...
-
Hamlet College recently purchased new computing equipment for its library. The following information refers to the purchase and installation of this equipment: 1. The list price of the equipment was...
-
1. Write a Java program named searchForLast Occurence that: Asks the user to enter an integer value that represents the size of an array of integers Prompt the user to fill an array of integers Asks...
-
Please write a dictionary named "country_counter" and combine a function called "addone" that can get the output as following. Also briefly explain the purpose of each step in your codes. Define a...
-
Apply following commands and note the response/output of computer 1. date 2. who 3. echo $TERM 4. cal followed by month and year 5. PS1="May I help you?" 6. Enter PS1=$ 7. cal 8. banner I Love Unix...
-
Clearly the topic we have studied to this point which is most unique, to those we have seen in the commerical environment, is Budgetary Control. To the extent you are familiar with budgeting for the...
-
Final Assignment: Job Application Package Please prepare a job application for a specific job. The job application package that you hand in will consist of four items: 1. A copy of a job...
-
Listed below are amounts of strontium-90 (in millibecquerels, or mBq) in a simple random sample of baby teeth obtained from Pennsylvania residents born after 1979 (based on data from "An Unexpected...
-
For the following exercises, write the polynomial function that models the given situation. Consider the same rectangle of the preceding problem. Squares of 2x by 2x units are cut out of each corner....
-
In 2018, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2017, Adonis's inventories were $47.6 million (average cost)....
-
In 2018, J J Dishes changed its method of valuing inventory from the FIFO method to the LIFO method. At December 31, 2017, J J's inventories were $96 million (FIFO). J J's records were insufficient...
-
Irwin, Inc., constructed a machine at a total cost of $35 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being...
-
Develop a multi-threaded program to calculate the value of using the Monte Carlo method.
-
During a long jump Olympic champion Carl Lewis's center of mass rose 1.2 m from the launch point to the top of the arc. What minimum speed u; did he need at launch if he was traveling at 6.4 m/s at...
-
The electric field at the point = 4.87 cm and y = 0 points in the positive points in the positive 21.6cm direction with a magnitude of 11.2 N/C. At the point = 11.8 cm and y direction with a...
Study smarter with the SolutionInn App