Effective interest amortization

Assignment Help Accounting Basics

Reference no: EM13764944

1. Garfield Company purchased, as a held-to-maturity investment, $80,000 of the 9%, 5-year bonds of Chester Corporation for $74,086, which provides an 11% return. Prepare Garfield's journal entries for (a) the purchase of the investment and (b) the receipt of annual interest and discount amortization. Assume effective interest amortization is used.

2. Garfield Company purchased, as an available-for-sale securities, $80,000 of the 9%, 5-year bonds of Chester Corporation for $74,086, which provides an 11% return. Prepare Garfield's journal entries for (a) the purchase of the investment, (b) the receipt of annual interest and discount amortization, and (c) the year-end fair value adjustment. The bonds have a year-end fair value of $75,500. Assume effective interest amortization is used.

Reference no: EM13764944

Questions Cloud

Journal entries to record the store transactions : Make summary journal entries to record the store's transactions for the year ended January 31, 2012. Best Way uses a perpetual inventory system.

Arrange second-level wbs elements in the form of a task-flow : Arrange second-level WBS elements in the form of a task-flow network using PERT or CPM techniques to illustrate the earliest completion time, task, dependencies and the critical path.

Explore some key passages in as i lay dying in this light : explore some key passages in As I Lay Dying in this light. Of course, you might also take up a contrary view, which would be that the story is closer to tragedy in its manner and outcome than it is to dark comedy.

Research and discuss on buffer-overflow attacks : The key to this assignment is to demonstrate your understanding of the topics, not to re-word the text or reference material. Please see Appendix A for the grading rubric on all written assignments.

Effective interest amortization : Prepare Garfield's journal entries for (a) the purchase of the investment and (b) the receipt of annual interest and discount amortization. Assume effective interest amortization is used.

Total manufacturing overhead costs of paymore : The following information is available regarding the total manufacturing overhead costs of Paymore, Inc., for five months in 2012:

How concept of only strongest and fittest survive serves : Explain how the concept of "only the strongest and fittest survive" serves as the overall theme throughout White Fang. Cite evidence and examples from the novel.

Complete a project task analysis : Complete a project task analysis, during which the project mission, goal, objectives, and approach developed in Week Two are further broken down into a hierarchical WBS at the second or third level. The final assignment is due in Week Five.

Why some parents are more interested in social life : Why Some parents are more interested in social life. Some parents spend a lot of time with their children.Some parents are too involved in work. Children look to outside sources for attention.

User Account

All Pages