Calculate the carrying value of the bonds

Assignment Help Accounting Basics
Reference no: EM132614145

Question - On October 1, 2012, Wenn Co. purchased 800 of the $1,000 face value, 8% bonds of Loy, Inc., for $936,000, including accrued interest of $16,000. The bonds, which mature on January 1, 2019, pay interest semiannually on January 1 and July 1. Wenn used the straight-line method of amortization and appropriately recorded the bonds as available-for-sale. On Wenn's December 31, 2013 balance sheet, calculate the carrying value of the bonds?

a. $920,000.

b. $912,000.

c. $908,800.

d. $896,000.

Reference no: EM132614145

Questions Cloud

Determine cost of that item to be reported on balance sheet : Select any one item from the property, plant, and equipment section, and discuss how you determine the cost of that item to be reported on the balance sheet.
Find Equity Investment account at December : If Blanco Company uses the equity method of accounting for its investment in Darby Company, find its Equity Investment (Darby) account at December 31, 2013
What scholarly evidence did you use in making your decision : What scholarly evidence did you use in making your decision? Why is this resource credible and compelling? Compare your chosen case to that of Christian.
Describe effect of each of circumstance on auditor report : How describe the effect of each of the above circumstances on your auditor's report if management were to refuse to make any changes
Calculate the carrying value of the bonds : On October 1, 2012, Wenn Co. purchased 800 of the $1,000 face value, 8% bonds of Loy, Inc., for $936,000, calculate the carrying value of the bonds
Discuss how society decides what to define as a crime : As we learn in the video, Crimes of the Powerful, our justice system tends to focus on street crime, often ignoring much more significant problems.
What does the mean for MTL financial position : What does this mean for MTL's financial position with reference to the ratio analysis undertaken as part of the analytical procedures?
Discuss what role the war on drugs might play : Considering the "war on drugs," discuss what role the "war on drugs" might play in contributing to an overburdened public defense system?
Prepare the journal entries to reflect the accounting : Prepare the journal entries to reflect the accounting for the company's pension plan for the year ending December 31, 2020

Reviews

Write a Review

Accounting Basics Questions & Answers

  What should be the corrected net incomes for 2010 and 2011

A company discovered in 2012 that it had overstated the inventory balance for Dec 31, 2010 by $10,000. The company had (incorrectly) reported Net Income to be $300,000 for 2010, and $400,000 for 2011. What should be the corrected Net Incomes for 2..

  What percentage of the contribution margin is profit

What percentage of the contribution margin is profit on units sold in excess of the breakeven point?

  Geiger owns a small retail store that sells candies

Your friend, Wendy Geiger, owns a small retail store that sells candies and nuts. Geiger acquires her goods from a few select vendors.

  Additional audit procedures that the audit team

Please describe additional audit procedures that the audit team should perform in the each of the scenario. Please also highlight probable misstatements in LBE's financial statements.

  What is the depreciation expense for the second year

Assuming the activity based method of depreciation, what is the depreciation expense for the second year if 1.5 million units were produced

  Determine the current average cost per meal

With a capacity of 800 meals per day, the restaurant serves an average of 750 meals each day. Determine the current average cost per meal

  What will the new breakeven point be in units

If the selling price is increase to $64.95 and the total fixed expenses are decreased by 10%, what will the new breakeven point be in units

  Create a budget to show tom and sally income

First, in an Excel Spreadsheet, create a budget to show Tom and Sally's income, expenses, and money leftover each month (Net).

  Discuss what amount should turnip report as allowance

what amount should Turnip report as allowance for uncollectible accounts

  What journal entries be made relative to sale of machinery

Assuming that actual warranty costs are incurred exactly as estimated, what journal entries would be made relative to the following facts

  What was the predetermined overhead allocation rate

Patrick Company uses a job order cost accounting system. Using direct labor hours as a base, what was the predetermined overhead allocation rate?

  Compute the cost of goods sold for may

Ricardo Reyes uses the first-in first-out (FIFO) method to account for inventory, Compute the cost of goods sold for May and the ending inventory balance

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