Calculate the proceeds of the bond issue

Assignment Help Accounting Basics
Reference no: EM131814139

On December 31, 2007, Ace issued $8,000,000, 7% bonds to yield 8% Ace incurred 120,000 of bond issue costs interest is payable semi-annually on December 31 and June 30. the bonds mature on December 31, 2012.

On December 31, 2010 Ace retired $2,000,000 of the bonds at 104 plus accrued interest. Ace uses straight line amortization on the bond issue costs.

1) Calculate the proceeds of the bond issue.

2) Prepare a Bond Amortization Table (Use the effective interest method)

3) Prepare all journal entries for the issuance of the bonds, the interest payments, the early retirement and the payoff of the bonds of maturity.

Reference no: EM131814139

Questions Cloud

Calculate the break-even point for this option : calculate the break-even point for this option and compute the total net profit/loss & the rate of return on the (option premium) investment.
Levels of corporate earnings before? taxes : Find the marginal tax rate for the following levels of corporate earnings before? taxes:
What are the future implications with affordable care act : Evaluate the social-cultural issues that are influencing adverse selection in insurance markets. What are the future implications with the Affordable Care Act?
Compute the cost of the units transferred : Compute the cost of the units transferred to the next department during the period and the cost of ending work in process inventory
Calculate the proceeds of the bond issue : Prepare all journal entries for the issuance of the bonds, the interest payments, the early retirement and the payoff of the bonds of maturity
Identify the processes that are currently in place : Explain how the example you found relates to the environment and public health-both directly and indirectly.
Explain what ethical dilemma do marketing professionals face : Explain what ethical dilemmas do marketing professionals face in gathering information on customer bases through smartphones and social media?
What is donna monthly retirement income : What is Donna's monthly retirement income if her rate of return on assets during retirement is 4% and the inflation rate is 1%?
Explain a sociological perspective to the social world : Analyze contemporary social issues using the sociological imagination and use sociological theories and concepts to analyze everyday life.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Distribution model and dividend per share

The Big Corporation expects next year's net income to be $20 million. The firm's debt ratio is currently 30%. Big has $18 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio.

  What is his short-term capital loss carryover

What is his short-term capital loss carryover (if anything) to 2016? What is his long-term capital loss carryover (if anything) to 2016

  Below is selected data for gertup corporation as of 123105

below is selected data for gertup corporation as of 123105 total assets 5500 current assets 2750 long-term debt 450

  Determine the price of the bonds at january

On January 1, 2011. Boomer Universal issued 12% bonds dated January 1, 2011, with a face amount of $200 million. Determine the price of the bonds at January

  Managerial purposes and decisions

The CEO of your company has asked you to prepare a written presentation to be given at the next board of directors meeting on why different types of cost information need to be reported to support different managerial purposes and decisions. In a ..

  Analyze and enter all of transaction for the month of june

Judy Schmidt, M.D., has been practicing as a pediatrician for three years. Analyze and enter all of the transaction for the month of June

  Fabiano brothers co is considering an investment that

fabiano brothers co. is considering an investment that requires immediate payment of 550000 and provides expected cash

  Companies whose managers own a significant proportion

(i) Discuss the extent to which directors should be accountable to: (a) shareholders; (b) employees; (c) suppliers; (d) customers; (e) the government; (f ) the public.

  Analyze the risks in the systems

Analyze the risks in the systems that your team analyzed. Identify all risks and internal control points by incorporating the controls and risks into the flowcharts.

  Strengthen the fixed asset internal controls at grundoll

Describe any improvements you would suggest to strengthen the fixed asset internal controls at Grundoll.

  What was the flexible budget variance a positive number

the following information is for x companybudgeted proudction10200 unitsactual production11300 unitsbudgeted

  According to the companys records the conversion cost in

malaviya corporation uses the fifo method in its process-costing system. operating data for the casting department for

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