Create a bond amortization table

Reference no: EM1358737

June 1, 2004 Janson Co sold $1,000,000 in long term bonds for $877,600 maturing in 10 years with a stated interest rate of 8% and 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. Include only the first four years. Make sure all columns and rows are properly labeled. Round to the nearest dollar.

b) The sales price of $877,600 was determined from present value tables. Explain how one would determine the price using present value tables.

c) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2006.

Reference no: EM1358737

Questions Cloud

How long must the engine burn in order to reach this speed : how long must the engine burn in order to reach this speed. What will be the equilibrium temperature when a 259 block of copper at 258 is placed in a 137 aluminum calorimeter cup containing 836 of water at 16.

Electronic life vs real life : What are some of the benefits of participating in online communities and social networking websites and technologies? What are some of the drawbacks?

Motivation and emotions in decision making : Motivation and Emotions in Decision Making - Show a recent decision that you made

Write a shell script to read students first names : Write a shell script that reads 5 students' first names, last names and grades and then it calculates the average, maximum and minimum grade.

Create a bond amortization table : June 1, 2004 Janson Corporation sold $1,000,000 in long term bonds for $877,600 maturing in ten years with a stated interest rate of 8 percent and yield rate of 10 percent.

Volatility and decision making : Show how stock trading has created a lot of this volatility and the decisions for stock traders to buy and sell wildly in terms of hyperbolic discounting.

Estimate the initial speed of that car assuming a level road : Estimate the initial speed of that car assuming a level road.What would be the equilibrium temperature when a 252 block of copper at 275 is placed in a 136 aluminum calorimeter cup containing 807 of water at 14.90.

Optimization and linear programming : Determine the best set of Order Quantities so that you obtain the Optimum amount of profit for one product line at EBBD.

Write a program that bounces blue ball inside jpanel : Write a program that bounces a blue ball inside JPanel. The ball should begin moving with a mousePressed event. When the ball hits the edge of the JPanel.

User Account

All Pages