Premium amortization On the first day of the fiscal year, a company issues a $4,000,000, 9%,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Premium amortization On the first day of the fiscal year, a company issues a $4,000,000, 9%, 10-year bond that pays semiannual interest of $180,000 ($4,000,000 9% x 1/2), receiving cash of $4,892,647. Using straight-line amortization, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. Premium amortization On the first day of the fiscal year, a company issues a $4,000,000, 9%, 10-year bond that pays semiannual interest of $180,000 ($4,000,000 9% x 1/2), receiving cash of $4,892,647. Using straight-line amortization, journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
Expert Answer:
Posted Date:
Students also viewed these accounting questions
-
In a small university, the Computer Science Department has six faculty members. However, each faculty member belongs to only the computer science department. This type of relationship is called a....
-
Farmer Franks produces items from local farm products and distributes them to supermarkets. Over the years, price competition has become increasingly important, so Susan Kramer, the companys...
-
For your answers to the following Problems and Exercises from prior chapters, transform the EER diagrams into a set of relational schemas, diagram the functional dependencies, and convert all the...
-
What are two ways of expressing the rate of return on investment?
-
Identify the types of nonexchange revenues that are most likely to result in differences in the timing of recognition between the accrual and modified accrual bases of accounting.
-
The radial position of a fluid particle P in a centrifugal pump with radial vanes is approximated by r = ro cosh Kt, where t is time and K is the constant angular velocity of the impeller. Derive...
-
A person starts from his home and walks the following distances: i) 1500 yards, 50 N of E ii) 1800 yards, 50 W of N iii) 1000 yards, due south. What direction is the person relative to his home? 000...
-
How can norms be used to reduce deviant behavior in the workplace?
-
15. A laser emitting at 632.8 nm illuminates a double slit. A screen is positioned 2.00 m from the slits. Interference fringes are observed with separation of 1.0 cm. [6 marks] a) Determine the...
-
3. A block of mass 3.20 kg is moving with a speed of 14 m/s when it starts to slide up a rough incline that makes an angle of 30 to the ground with a coefficient of friction of 0.195. How high above...
-
Now if you reduce the profit for the first of the ten years (year one only) by the sunk cost or loss incurred by selling the equipment for $30,000...but then the other 9 years you would still have a...
-
Boeing Partnership has 3 partners, Kimberly, Tim, & Jackson with the following facts: Boeing Partnership's Assets: Trucks: FMV $4,000,000; Inside Basis $ 3,200,000 Land: FMV $4,000,000; Inside Basis...
-
Consider the following transactions and then prepare income statement in the book of General Motor on 31/12/2019. Cash...
-
a) Calculate the goodwill that was paid by Major Ltd on the acquisition of Minor Ltd. [10 marks] b) Prepare the consolidated statement of financial position for Major Ltd at 31 July 20X8. [30 marks]...
-
Using the following data for Evans \& Sons, calculate the cash paid for merchandise purchased: Cost of goods sold. Inventory, January 1. Inventory, December 31 $128,000 19,000 22,000 Accounts...
-
The Washington Company owns no plant assets and had the following income statement for the year: Additional information about the company includes: Use the preceding information to calculate the cash...
-
The Azuza Company owns no plant assets and had the following income statement for the year: Additional information about the company includes: Use the preceding information to calculate the cash flow...
Study smarter with the SolutionInn App