Computation of interest payable

Assignment Help Finance Basics

Reference no: EM1310833

Computation of interest payable.

A company issued 9%, 10-year bonds with a par value of $1,000,000 on Sept 1, 2007 when the market rate was 9%. The bonds were dated June 30, 2007. The bond issue price included accrued interest. Interest paid semi-annually on Dec 31 and June 30.

a) Prepare the issuer's journal entry to record the issuance of the bonds.

b) Prepare the issuer's journal entry to record semi-annual interest payment on Dec 31, 2007.

Reference no: EM1310833

Questions Cloud

Production of joint products : Discuss a production process that you think would involve the production of joint products, being sure to address the following points:

Evaluate the sample size needed : Finding the sample size of 95% level confidence - Find the sample size needed

Determine cost to record the new asset from exchange : Chi Corporation trades an asset with a book value of $20,000 for another asset with a fair market value of $15,000. Find out Chi s cost to record the new asset from the exchange.

Finding sample size of 99% confidence level : Finding sample size of 99% confidence level and If the confidence level is increased to 99%, would the sample size needed increase or decrease?

Computation of interest payable : Computation of interest payable and Prepare the issuer's journal entry to record the issuance of the bonds

Phillips company investment account : Phillips Company bought 40 percent ownership in Jones Bag Company on January 1, 20X1, at underlying book value. In 20X1, 20X2, and 20X3, Jones Bag reported net income of $8,000, $12,000, and $20,000

Analysis of the business options : Summary analysis of the business options, selecting optimum business portfolio

Amount of outstanding checks : Fitzgerald Company wrote checks totalling $17,080 during October and $18,650 during November. What was the amount of outstanding checks on November 30?

Computation of interest payable on bonds and journal entry : Computation of interest payable on Bonds and Journal entry to record issuance of the bond

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

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!

Submit Assignment

User Account

All Pages