Construct a bond amortization table

Assignment Help Accounting Basics
Reference no: EM131643476

Question - On June 1, 2016, Everly Bottle Company sold $3,000,000 in long-term bonds for $2,631,300. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of 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.

B) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2018.

Reference no: EM131643476

Questions Cloud

Prepare the adjusting entry for december : Grove Corporation issued $6,000,000 of 8% bonds on October 1, 2017, due on October 1, 2022. Prepare the adjusting entry for December 31, 2018
Analyze various points of view of the three citizens present : Explore the issue of how should citizen actions be shaped by an ideology. Analyze various points of view of the three citizens presented.
What is needed to determine the operating income : What is taken into consideration to figure out the contribution margin? How is the break-even point determined? What is needed to determine operating income?
Discuss clinical judgment to assure safe : Develops and outlines a scientific, systematic decision-making process to integrate critical thinking with clinical judgment to assure safe
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
Gatorade that are considered overweight and underweight : What are the percentages of 15 oz Gatorade that are considered “overweight” and “underweight”?
What occupation has the highest emotional index score : What occupation has the highest emotional index score? What occupation has the lowest emotional index score? What is the range of the data?
Probability of picking a person who smokes cigarettes : In words, explain what it means to pick one person from the study who is "Japanese American OR smokes 21 to 30 cigarettes per day." Also, find the probability ?
What is the number of authorized shares : If so, what is the number of authorized shares, number of issued shares, and number of outstanding shares for preferred stock

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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