Bond liability and the related accounts on balance sheet

Assignment Help Accounting Basics
Reference no: EM13147065

On December 31, 2003, Sloan Corporation issued $ 1,000,000, 10%, 5-year bonds for $ 700,000. The par value of each bond is $ 1,000. The stated interest rate on the bond is 10% payable annually on December 31 of each year, beginning December 31, 2004. The bonds will mature 5 years from the date of issue (December 31, 2008).

(d) Provide the journal entry to record the issuance of the bonds. Show computations.

(e) Provide the journal entry that Sloan should make on December 31, 2004, assuming straight line amortization.

(f) Show how the bond liability and the related accounts will appear on the Balance Sheet of Sloan on December 31, 2004.

Reference no: EM13147065

Questions Cloud

Find out the rate law and the value of k : Determine the rate law and the value of k for the following reaction using the data provided
How many grams of gas are formed : When a 3.03x102 g strip of zinc is dropped into a large beaker containing excess hydrochloric acid, how many grams of gas are formed?
Explain in urea both nitrogen atoms are found to be planar : In most amines, the nitrogen atom is hybridized, with a pyramidal structure and bond angles close to 109 . In urea, both nitrogen atoms are found to be planar
Present value of the project : Upper Darby Park Department is assuming no tax consequences. If Upper Darby Park Department has a required rate of return of 10%, which of the following is closest to the present value of the project?
Bond liability and the related accounts on balance sheet : Provide the journal entry to record the issuance of the bonds. Show computations. Provide the journal entry that Sloan should make on December 31, 2004, assuming straight line amortization. Show how the bond liability and the related accounts will ap..
Explain entropy change in the system is positive : Predict whether the entropy change in the system is positive, negative or close to zero for each of the following processes
What molar ratio of benzoate ion to benzoic acid required : What molar ratio of benzoate ion to benzoic acid would be required to prepare a buffer with a pH of 5.20? [Ka(C6H5COOH) = 6.5 * 10-5]
Describe the anatomical structure of ten different organelle : Describe the anatomical structure of ten different organelles in the cell and discuss their respective functions.
Compare and contrast different types of epithelial tissues : Compare and contrast five different types of epithelial tissue with examples of functions and location within the body.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Journal entry to record retirement of bonds

A company previously issued $2,000,000, 10% bonds, receiving a $120,000 premium. On the current year's interest date, after the bond interest was paid and after 40% of the total premium had been amortized, the company purchased the entire bond iss..

  Hghest and lowest opportunity cost

Which countries would you predict have the highest and lowest opportunity cost associated with a strong military?

  Physical counts of inventory

Periodically reconciling the physical counts of inventory to total counts reflected in accounting records by using someone who does not handle inventory or record purchases is considered to be:

  Recognition of gross profit from the sale

The first installment payment of $18,360 was received on Dec. 31. How much gross profit from this sale should Pacer recognize on the December 31 income statement?

  What is the interest expense for the first and second year

on january 1 f the current year, feller corporation issued $3000000 of 10% debenture bonds on a basis to yield 9%,receiving $3134580. interest is payable annually on december 31 and the bonds mature in 6 years.the effective interest method is used..

  Gaap for zero-interest-bearing note

Identify the authoritative literature that provides guidance on the zero-interest-bearing note. Use some of the examples to explain how the standard applies in this setting.

  Relationship between tax base and tax rate

What is the relationship between tax base and tax rate in determining the revenue collected by the government? Give an example of how a particular tax would fit into the various components of the equation.

  Airbus plant relocation

This week, Airbus announced it was building new plant in Alabama. Can you aid me in answering the following questions based on information in conjunction with Foreign Direct Investment.

  Prepare journal entry to record sale of lathe

Howarth Manufacturing Company purchased a lathe on June 30, 2007, at a cost of $80,000. Prepare the journal entry to record the sale.

  Depreciation expense on the consolidated income statement

On their separate 2011 income statements, Payton & Starker reported depreciation expense of $84,000 and $60,000 respectively. The amount of depreciation expense on the consolidated income statement for 2011 would have been

  Earn the minimum wage

With this system it is estimated that 120 cars per hour can be serviced. All workers earn the minimum wage. Use productivity arguments to recommend whether or not to change the current system.

  Annual rate of return of engles oil company

Engles Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $130,000 and will increase annual expenses by $80,000 including depreciation.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd