Assume a corporation issued a 10% $100,000, 2-year bonds with a semiannual interest payment. The effective rate

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

Question:

Assume a corporation issued a 10% $100,000, 2-year bonds with a semiannual interest payment. The effective rate is 11% and the discount on bonds payable is $1,753.

Required

(a) Calculate the carrying amount of the bond.
(b) Record the first interest payment and the discount amortization.

Related Book For answer-question

Intermediate Accounting

ISBN: 978-0132162302

1st edition

Authors: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella

See More Books

Posted Date: Apr 27, 2023 05:04 AM

See More Questions

On January 1, 2016, Mobile Technology, Incorporated issued $ 850,000 of $ 1,000 par value, 6%, six- year bonds. Interest is payable semiannually each January 1 and July 1 with the first interest...
The purpose of this assignment is to demonstrate steps performed in an Apriori analysis (i.e. Market Basket analysis). Review the "APRIORI ALGORITHM" section of Chapter 4 of the Sharda et. al....
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
An astronaut must journey to a distant planet, which is 200 light-years from Earth. What speed will be necessary if the astronaut wishes to age only 10 years during the round trip?
Find the average power absorbed by the network in figureif v(t) = 60 + 36 cos(377t + 45) + 24 cos(754t 60)V 30 mH 24 N 50 F 120 v(1) +1
Different views, opinions, approaches and methods have existed in economics for almost as long as the profession has existed. Despite this, some approaches and methods tend to rise and dominate...
Regulation can no longer be viewed simply in terms of command and control over companies. Discuss two alternatives to direct regulation and explain, by using the notion of an enforcement pyramid,...
In 1999, Andreas Halvorsen, David Ott, and Brian Olson formed a hedge fund, Viking Global Investors LLC. The LLC's written agreement provided that the three founders would operate Viking, and divide...
If you invested $1 million dollar in a startup as part of a $2 million dollar funding at a $3 million pre-money valuation, how much of the company would you own after close of funding?
The controller at Wesson Companys manufacturing plant has provided you with the following information for the first quarters operations: Required Determine each of the following unit costs: a....
Before the 2020 basic financial statements, both government-wide and the fund can be prepared for the City of Bingham, you must first record and post adjusting and closing entries for governmental...
Oslo Company prepared the following contribution format income statement based on a sales volume of 1,000 units (the relevant range of production is 500 units to 1,500 units): Sales Variable expenses...
Who suggested product, pricing, place, promotion all these in a company represents Market Mix? What is Marketing Mix?
(a) Compute the missing balance sheet amounts for each of the three years shown. Current Long-term ($ millions) Assets Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities...
Prior to these transactions, the balance sheets for the two companies were as follows: Items Presidio Company Mason Company Cash $ 6 9 , 9 0 0 $ 3 0 , 0 0 0 Receivables 3 6 4 , 0 0 0 1 1 7 , 0 0 0...
Solve 15. 17. 19. x * 45 Z 30 142 X 45 Z 60 y 60 45 63 39 Z x = y = N= x = y = Z= x = y = Z= 21. Find the perimeter of the triangle: A 60 60 4/15 16. 18. 20. 45 163 30 x 30 45 20 y Z 30 45 106 X = y=...
Use appropriate data cleaning techniques and methods in Pandas to convert the raw file into clean data structure and answer the following questions. Your answers should be accurate. All cleaning and...
In order to get an idea on current buying trends, a real estate agent collects data on 10 recent house sales in the area. Specifically, she notes the number of bedrooms in each house as follows: a....
Prepare the statement of cash flows under the direct method for the Snail Company using the information from P6- 9 and the following cash flow information: In P6-9 Snall Company Balance Sheet At...
On January 1, 2016, Faxico, Inc. issued $ 4,500,000 par value 8%, five- year bonds. Interest is payable semiannually on January 1 and July 1 with the first interest payment on July 1, 2016. The...
Magic Cleaning Services (MCS) has a fiscal year- end of December 31. As of year- end, MCS has the following unadjusted trial balance: In addition, it has not adjusted for the following transactions: ...
The National Center for Health Statistics sampled 5844 American women over the age of 20 and found that their median weight was 157.2 pounds. A histogram of the data set was skewed to the right....
In a recent year, approximately 1.7 million people took the mathematics section of the SAT. Of these, 42% scored less than 490, 45% scored less than 500, 49% scored less than 510, 52% scored less...
The National Health and Nutrition Examination Survey measured the heights, in inches, of a large number of American adult men. Of these heights, 33% were less than 68, 42% were less than 69, 59% were...

Assume a corporation issued a 10% $100,000, 2-year bonds with a semiannual interest payment. The effective rate

Question:

Expert Answer:

a The carrying amount of the bond can be calculated as follows Face value of the bond 100000 Discoun... View the full answer

Intermediate Accounting

Students also viewed these accounting questions