Billys hamburgers issued 5 10-year bonds payable at 90 on

Assignment Help Accounting Basics

Reference no: EM13568466

Billy's hamburgers issued 5%, 10-year bonds payable at 90 on December 31, 2012. At December 31, 2014, Billy Reported the bonds payable as follows:

Long-Term Liabilities

Bonds Payable $400,000

Less: Discount on Bonds Payable 32,000 $368,000

Billy Pays semiannual interest each June 30 and December 31

1. Answer the following questions about Billy's bonds payable:

a. What is the maturity value of the bonds?

b. What is the carrying amount of the bonds at December 31, 2014

c. What is the semiannual cash interest payment on the bonds?

d. How much interest expense shoudl the company record each year?

2. Record the June 30, 2014, semiannual interest payment and amortization of discount.

Reference no: EM13568466

Questions Cloud

Bullen issued 12000 shares of common stock with 5 par : bullen issued 12000 shares of common stock with 5. par value and 47 fair value to obtain all of vickers outstanding

Furthermore it is reported that the predicted tracking : you are reviewing a report by a portfolio manager that indicates that a funds predicted forward-looking tracking error

You are thinking of retiring your retirement plan will pay : you are thinking of retiring. your retirement plan will pay you either 250000 immediately on retirement or 350000 five

What are the limitations of using duration and convexity : what are the limitations of using duration and convexity measures in active portfolio

Billys hamburgers issued 5 10-year bonds payable at 90 on : billys hamburgers issued 5 10-year bonds payable at 90 on december 31 2012. at december 31 2014 billy reported the

What is meant by systematic risk factors what is the : a what is meant by systematic risk factors?b what is the difference between term structure and non-term structure risk

Essay write a story about the most memorable good or bad : essay write a story about the most memorable good or bad vacationtripjourney you have

We bake perfect pies company makes fruit pies using a : we bake perfect pies company makes fruit pies using a process cost system. the dough is made in the mixing department

Ealuate what a companys assets and equity ratios indicate : evaluate what a companys assets and equity ratios indicate about companys performance. also what are the reasons why

User Account

All Pages