Reference no: EM132742714
Problem - Entries for issuing bonds and amortizing discount by straight-line method
On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% 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 8%, resulting in Chin receiving cash of $9,594,415.
a. Journalize the entries to record the following:
1. Issuance of the bonds.
2. First semiannual interest payment. The bond discount is combined with the semiannual interest payment. Round to the nearest dollar.
3. Second semiannual interest payment. The bond discount is combined with the semiannual interest payment. Round 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 $9,594,415 rather than for the face amount of $10,000,000.
Determine the present value of your winnings
: The $50,000,000 prize will be paid in equal installments of $6,250,000 over eight years. Determine the present value of your winnings
|
Tools of organizational change
: The nine steps in Ackerman and Anderson's roadmap for change, Cummings and Worley's five dimensions of leading and managing change,
|
Which you would follow for the long-term change
: Explain which change model you would follow for the short-term change and which you would follow for the long-term change.
|
Calculate france net pay
: Employees who work overtime. France has a claim code of 3 on her federal TD1 and a deduction code of C on her TP1015.3-V. Calculate France's net pay.
|
Determine the amount of the bond interest expense
: On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, Determine the amount of the bond interest expense for the first year
|
How to write business plan
: Read "How to Write a Business Plan," by Guglielmo. The author provides some advice concerning the management team.
|
Calculate income tax for michelle laframboise
: Michelle's TD1 and TP-1015.3-V codes are 1 and A. Michelle is not an employee of the organization. Calculate income tax for Michelle Laframboise
|
Describe the significance of service tasks
: Select and describe a target population that you can see yourself working with in the future. What should be included in the service definition in order to make
|
Journalize the entries to record the payment of principal
: On January 1, the first day of the fiscal year, a company issues a $500,000, Journalize the entries to record the payment of the principal on the maturity date
|