User Account

All Pages

Determine the amount of the bond interest expense

Assignment Help Financial Accounting
Reference no: EM133004244

On the first day of its fiscal year, Jacinto Company issued $13,100,000 of five-year, 12% 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 14%, resulting in Jacinto Company receiving cash of $12,179,919.

Problem a. Journalize the entries to record the following:

  1. Issuance of the bonds.
  2. First semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment.
  3. Second semiannual interest payment. The bond discount amortization is combined with the semiannual interest payment.If an amount box does not require an entry, leave it blank. Round your answers to the nearest dollar

Bonds Payable is always recorded at face value. Any difference in issue price is reflected in a premium or discount account. The straight-line method of amortization provides equal amounts of amortization over the life of the bond.

Problem b. Determine the amount of the bond interest expense for the first year. Round your answer to the nearest dollar.

Reference no: EM133004244

Questions Cloud

Explain the client has requested to use indirect quoting : Exchange rate quotation, Explain the client has requested you to use the indirect quoting from the Australia's point of view for the exchange rate.
Discuss how revenues are different from gains : Refer to Apple's revenue recognition footnote. IN particular, when does the company recognize revenue for the following types of sales?
What was the most important development in the history : What was the most important development in the history of medicine? Be prepared to defend your position and Define when "Modern medicine" began
Make report should include evaluation of continued retention : Make report should include an evaluation of the continued retention of this traditional feature of financial reporting and be informed by appropriate academic.
Determine the amount of the bond interest expense : On the first day of its fiscal year, Jacinto Company issued $13,100,000. Determine the amount of the bond interest expense for the first year.
Approve a plan to assess security controls : Create a presentation (Power Point, LibreOffice Impress, WPS Presentation) showing a minimum of 15 security controls. You are to use the security controls used
Should recognise a liability in accordance with the relevant : From Johnny's point of view, should he recognise a liability in accordance with the relevant Conceptual Framework definition and recognition criteria.
What is the balance in accounts receivable at end of june : Make a monthly schedule of cash receipts for the second quarter of 20x5 and what is the balance in accounts receivable at the end of june?
Create a nodejs application : Create a NodeJS application (i.e., index.js ) which on execution creates an SQLite3 database table (an in memory DB is fine).

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd