Solution-Create the journal entries to record the bond

Create the journal entries to record the bond retirement

Assignment Help Accounting Basics

Reference no: EM132464844

Problem - Computer Inc. is one of the pioneers in the manufacture of microprocessor for computers. On April 1, 2018, Intel issued $1,600,000 of 12% face value bonds for $1,703,411.40. The bonds are due in 4 years, and pay interest semiannually on September 30 and March 31. Intel sold the bonds to yield 10%.

1. Using an excel spreadsheet to enter a bond interest expense and premium amortization schedule using the straight-line method.

2. Use the same spreadsheet to enter a bond interest expense and premium amortization schedule using the effective interest method.

3. Enter any adjusting entries for the end of the fiscal year, December 31, 2018, using the: Straight-line method of amortization and Effective interest method of amortization.

Required - Assume the company retires the bonds on June 30, 2019, at 103 plus accrued interest. Create the journal entries to record the bond retirement using the straight-line method of amortization and the effective interest method of amortization.

Reference no: EM132464844

Questions Cloud

Prepare events including recording adjusting transactions : When a company uses special journals, the general journal is used for selected transactions and events including Recording adjusting transactions.

What is the old view of representation : What is the Old View of Representation? Define & Offer examples of the New (Cultural Studies) View of Representation. Define "Maps of Meaning."

How much may roger deduct if he is an employee : How much may Roger deduct if he is self-employed and earned $86,800? Is the deduction for AGI or from AGI?How much may Roger deduct if he is an employee

Describe the ways in which the northern renaissance differed : Describe the ways in which the Northern Renaissance differed from that of Italy, making comparisons between the landmarks that characterized each.

Create the journal entries to record the bond retirement : Create the journal entries to record the bond retirement using the straight-line method of amortization and the effective interest method of amortization

What strategies did you use that they may find useful : Provide advice to the next group of students who will be taking this course. What strategies did you use that they may find useful?

What was steves manufacturing cash balance : Sales commissions and other administrative expenses in the amount of 35,000. What was Steve's Manufacturing cash balance at the end of the week?

Could you say a bit more about the roots of the hatred : Could you say a bit more about the roots of the hatred that many international terrorists have for the U.S.? On what are these feelings and perceptions based.

Compute the drawings paid : Assume an additional investment was made for $4,800 and no drawings were paid during the year. Expenses were $42,000. Compute net income

User Account

All Pages

Create the journal entries to record the bond retirement

Reference no: EM132464844

Reference no: EM132464844

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT