Blue mountain power company obtained authorization to issue

Assignment Help Accounting Basics

Reference no: EM13600197

Blue mountain Power Company obtained authorization to issue 20 year bonds with a face value of $10 million. The bonds are dated May 1, 2011 and have a contract rate of interest of 10%. They pay interest on November 1 and May 1. The bonds were issued on August 1,2011, at 100 plus three months' accrued interest.

Prepare the necessary journal entries in general journal form on:

a. August 1,2011, to record the issuance of the bonds
b. November 1, 2011, to record the first semiannual interest payment on the bond issued
c. December 31,2011, to record interest expense accrued through year end. (Round to the nearest dollar)
d. May 1,2012, to record the second semiannual interest payment (Round to the nearest dollar)
e. What was the prevailing market rate of interest on the date that the bonds were issued? Explain.

Reference no: EM13600197

Questions Cloud

Garr co issued 5000000 of 12 5 year convertible bonds on : garr co. issued 5000000 of 12 5 year convertible bonds on december 1 2010 for 5020800 plus accrued interest. the bonds

Clean dirt inc had 8000 of salaries payable at december 31 : clean dirt inc. had 8000 of salaries payable at december 31 2010. during 2011 clean dirts salary expense was 60000. at

Hme improvement company a retail home store has two major : home improvement company a retail home store has two major divisions-outdoors and indoors. here is the data on their

On march 1 2008 eckert and kelley formed a partnership : on march 1 2008 eckert and kelley formed a partnership. eckert contributed 82500 cash and kelley contributed land

Blue mountain power company obtained authorization to issue : blue mountain power company obtained authorization to issue 20 year bonds with a face value of 10 million. the bonds

Ue the following information to answer this question : use the following information to answer this question increase in inventories 28 purchased treasury stock 17

Prepare a common-size income statement and balance sheet : common-size statements analysis of profitability and financial position comparison with the industry and using ratios

Prepare journal entries for the following assume a : prepare journal entries for the following assume a calendar-year accounting perioddec. 1 received a three-month 15

Collins and farina are forming a partnership collins is : 1. smith west and krug form a partnership. smith contributes 180000 west contributes 150000 and krug contributes

User Account

All Pages