Reference no: EM131881503
Problem
On January 1, the first day of its fiscal year, Pretender Company issued $12,700,000 of five-year, 11% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 13 resulting in Pretender Company receiving cash of $11,787,069
Required:
A. Journalize the entries to record the following (refer to the Chart of Accounts for exact wording of account titles)
1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar.)
3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. (Round your answer to the nearest dollar).
B. Determine the amount of the bond interest expense for the first year.
C. Explain why the company was able to issue the bonds for only $12,787,069 rather than for the face amount of $12,700,000.
Analyses supply chain disruption and propose strategies
: Write a report that analyses supply chain disruption and propose strategies that will enable multinational organisations to address such disruptions.
|
Find a company online that is using a development program
: Find a company online that is using a development program to improve a supplier's performance and/or capabilities and report on its experiences.
|
Determine the depreciable cost
: Copy equipment was acquired at the beginning of the year at a cost of $47,920. It had an estimated residual value of $4,400 and an estimated useful life.
|
Incoterm cost and freight
: A shipment for export with the Incoterm Cost and Freight (CFR) Memphis Airport has been received. Is this usage correct? If not, which Incoterm is correct?
|
Determine the amount of the bond interest expense
: Journalize the entries to record the Issuance of the bonds. Determine the amount of the bond interest expense for the first year.
|
What is the companys estimated times-interest-earned ratio
: The company turned over its assets 4 times in 2009. The firm had a debt ratio of 32% in 2009. What was the return on stockholder's equity for 2009?
|
Description of the experience of one of its customers
: Find a software company online providing forecasting solutions, and provide a description of the experience of one of its customers' use of the product.
|
Description of the experience of one of its customers
: Find a software company online providing forecasting solutions, and provide a description of the experience of one of its customers' use of the product.
|
Define who claim on the operating profits of a company
: A company has the following entries on its pro?t and loss statement: Turnover = £20,000, cost of goods sold = £10,000, operating expenses = £2,000.
|