Construct a bond amortization table

Assignment Help Accounting Basics

Reference no: EM13144202

On June 1, 2009, Everly Bottle Company sold $400,000 in long-term bonds for $351,040. The bonds will mature in 10 years and have a stated interest rate of 9 % and a yield rate of 10.5%. The bonds pay interest annually on May 31of each year. The bonds are to be accounted for under the effective-interest method.

A. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first five years. Make sure all columns and rows are properly labeled.

B. Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31,2011. Round to the nearest dollar

Reference no: EM13144202

Questions Cloud

What is the most likely chemical explanation for the fact : What is the most likely chemical explanation for the fact that butter is a solid at room temperature while olive oil is a liquid?

Four accounting regulatory bodies : Examine at least four accounting regulatory bodies and discuss how an organization complies with the standards of the regulatory bodies you slecet

How many grams of nac2h3o2 would have to be added : acetic acid has a Ka value of 1.8x10^-5. How many grams of NaC2H3O2 would have to be added to 100 ml of .1 M HC2H3O2 to prepare a buffer with a pH of 4.5?

Determining the profit margin : Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?

Construct a bond amortization table : Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first five years. Make sure all columns and rows are properly labeled.

Propose a mechanism for the conversion of glucose : propose a mechanism for the conversion of glucose 6-phosphate into fructose 6-phosphate by phosphoglucose isomerase based on the mechanism

Intergroup conflict : Answer the above points in a 3- to 4-page paper. Your paper should be double-spaced, typed in 12-point Times New Roman font with normal one-inch margins, written in APA style, and free of typographical and grammatical errors. It should include a titl..

Volume-based system and strategic activity-based system : Prepare a table that illustrates the percentage change in costs between the volume-based system and the strategic activity-based system.

Define how many grams of lead : A 15.00 mL sample of a 0.100 M solution of lead(II) nitrate is reacted with 10.00 mL of 0.170 M sodium chloride. How many grams of lead(II)

User Account

All Pages