Reference no: EM131206434
Universal Foods issued 12% bonds, dated January 1, with a face amount of $175 million on January 1, 2016. The bonds mature on December 31, 2030 (15 years). The market rate of interest for similar issues was 14%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required:
1. Determine the price of the bonds at January 1, 2016. (Enter your answer in whole dollars.
2. to 4. Prepare the journal entry to record their issuance by Universal Foods on January 1, 2016, interest on June 30, 2016 and interest on December 31, 2023. (Enter your answers in whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
1. Record the issuance of the bond on January 1, 2016.
2. Record the interest on June 30, 2016.
3. Record the interest on December 31, 2023.
|
The business owner did not have proper documentation
: Here is a scenario from a prior classmate. Her sister owned her own business and could not figure out why she kept getting NSF fees from her bank. She was constantly transferring money and never knew why this was happening. Imagine you are the bank ..
|
|
Prepare a cash budget for the first quarter
: The results of operations for the Preston Manufacturing Company for the fourth quarter of 2014 were as follows: Sales $ 500,000 Less variable cost of sales 300,000 Contribution margin 200,000 Less fixed production costs $ 100,000 Less fixed selling a..
|
|
Information about the budget for the year
: Fenzel Slide Oil produces a lubricant, SlickTone, which is used on trombone slides. Information about the budget for the year 2015 is as follows: The company expects to sell 7,000 bottles of SlickTone in the first quarter, 6,300 in the second quarter..
|
|
Prepare an analysis showing whether the old machine
: Kobe Company has a factory machine with a book value of $90,0000 and a remaining useful life of 5 years. It can be sold fro $30,000. A new machine is available at a cost of $300,000. This machine will have a 5 year useful life with no salvage value. ..
|
|
Determine the price of the bonds
: Universal Foods issued 12% bonds, dated January 1, with a face amount of $175 million on January 1, 2016. The bonds mature on December 31, 2030 (15 years). Determine the price of the bonds at January 1, 2016.
|
|
Operating income change if the special order is accepted
: Tom Industries has a plant capacity of 70,000 units and current production is 55,000 units. At this production volume the variable cost per unit is $30, and the fixed cost per unit is $4.10 per unit. What impact will accepting the special order have ..
|
|
The gabriella division is? eliminated
: The High School Musical Company has two divisions? - Troy and Gabriella. Troy has a segment margin of? $220,000. Gabriella has a segment margin of? $30,000. Common fixed costs total? $170,000. $50,000 of this amount is allocated to the Gabriella divi..
|
|
Prepare journal entry to record their issuance by federal
: Federal Semiconductors issued 13% bonds, dated January 1, with a face amount of $690 million on January 1, 2016. The bonds sold for $644,005,394 and mature on December 31, 2035 (20 years). For bonds of similar risk and maturity the market yield was 1..
|
|
About the standard deduction
: Louis files as a single taxpayer. In April of this year he received a $1,120 refund of state income taxes that he paid last year. How much of the refund, if any, must Louis include in gross income under the following independent scenarios? Assume the..
|