Amortization by straight-line method of bond premium

Assignment Help Financial Accounting

Reference no: EM131259540

On June 30, 2013, Arlington Company issued $1,900,000 of 10-year, 3% bonds, dated June 30, for $1,970,000. Present entries to record the following transactions: Arlington Company (1) Issuance of bonds. (2) Payment of first semiannual interest on December 31, 2013. (3) Amortization by straight-line method of bond premium on December 31, 2013.

Reference no: EM131259540

Questions Cloud

What is the equivalent annual worth of the operating costs : It is expected that a pump will incur operating cost of $ 2,000 for the first year and that these costs will increase $ 400 each year thereafter for the 20 year life of the pump. If the money is worth 15 % per year to the firm, what is the equivalent..

Determine the break-even sales in units and dollars : Belmain Co. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various departm..

What is the total stockholders equity based on the data : What is the total stockholders' equity based on the following data? Common Stock $510,000 Excess of Issue Price Over Par 375,000 Retained Earnings (deficit) 50,000

Expects to maintain the same inventories : Belmain Co. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of goods sold. With this in mind, the various departm..

Amortization by straight-line method of bond premium : On June 30, 2013, Arlington Company issued $1,900,000 of 10-year, 3% bonds, dated June 30, for $1,970,000. Present entries to record the following transactions: Arlington Company (1) Issuance of bonds. (2) Payment of first semiannual interest on Dece..

Using the percentage-of-completion method : Binder Corporation agreed to build a warehouse for a client at an agreed contract price of $4,000,000. Expected (and actual) costs for the warehouse follow: 2014, $640,000; 2015, $1,600,000; and 2016, $800,000. The company completed the warehouse in ..

Using the indirect method of presenting cash flows : The comparative balance sheet of Tru-Built Construction for December 31, 2014 and 2013, Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, ca..

On what date did the buyer recognize the liability : You are auditing the financial statements of a New York City company that buys a product from a manufacturer in Los Angeles. The buyer closes its books on June 30. On what date did the buyer realize the liability? On what date did the buyer recognize..

Three-quarters ownership of canadian partnership : California Graphics is a U.S. corporation with $200 million of U.S.-source income and $10 million of foreign-source income. In addition, California Graphics has three-quarters ownership of a Canadian partnership that has total pretax income of $30 mi..

User Account

All Pages