Effective interest method of amortization

Assignment Help Financial Accounting
Reference no: EM131803138

On July 1, 2010, York Co. purchased as a held-to-maturity investment $1,000,000 of Park, Inc.'s 8% bonds for $946,000, including accrued interest of $40,000. The bonds were purchased to yield 10% interest. The bonds mature on January 1, 2017, and pay interest annually on January 1. York uses the effective interest method of amortization. In its December 31, 2010 balance sheet, what amount should York report as investment in bonds?

Reference no: EM131803138

Questions Cloud

Presented on the balance sheet on december : At what amount should the discount on notes payable be presented on the balance sheet on December 31, 2011?
Discuss what will be the balance reported as a liability : what will be the balance reported as a liability by Hewlitt in the December 31, 2017, balance sheet
How does vera bradley stack up against its competitors : How does Vera Bradley stack up against its three major competitors?Which firm appears best poised for growth in the next 3-5 years?
Discuss employee ownership of the companys common shares : To encourage employee ownership of the company's common shares, KL Corp. permits any of its employees to buy shares directly from the company
Effective interest method of amortization : York uses the effective interest method of amortization. In its December 31, 2010 balance sheet, what amount should York report as investment in bonds?
Prepare a wbs with the steps that must be completed : Vern Toney managed the small IT group of a growing business. Vern's boss, the CFO, was on Vern's back to cute costs in the IT group.
What factors were unique in the given situation : Multiple models are often used in supporting business decision making. Outline a situation in your organization or industry that required the need for multiple.
Amount of unamortized premium on bond : What amount of unamortized premium on bond should Webb report in its June 30, 2011 balance sheet?
Shares of beck common stock were outstanding : In 2011, Beck purchased 75,000 shares of its common stock and held it in Treasury. At December 31, 2011, how many shares of Beck's common stock were outstanding

Reviews

Write a Review

Financial Accounting Questions & Answers

  Compute for each year the accounts receivable turnover

The following data are taken from the financial statements of Rainsberger Company. 2015 2014 Accounts receivable (net), end of year $550,000 $520,000 Net sales on account 3,960,000 3,100,000 Terms for all sales are 1/10, n/60. Collapse question part ..

  Prepare an income statement and a statement of owners equity

Required: Use the above information to prepare An Income Statement, A Statement of Owner's Equity and A Balance Sheet for Lake Corporation for the year of 2013.

  Profits have to increase accountability and transparency

Nonprofit audits also are conducted to ensure that the financial statements are materially correct and are prepared in accordance with GAAP. Donor restrictions are a part of what auditors look at. A lot of nonprofits have an audit of internal control..

  Estimate the ratio slide from the presentation

Estimate the ratio slide from the presentation (Let's Estimate some Ratios for Ruckman (GAAP)). Follow the presentation and complete the second table (Let's Estimate some Ratios for Ruckman (IFRS).

  Determine the costs per equivalent unit

Assume that the company uses the weighted-average method. Determine the costs per equivalent unit for June for the first process.

  What is maximum amount ken can contribute for himself

If Ken is required to contribute for his employees and chooses to contribute the maximum amount, what is the maximum amount Ken can contribute for himself?

  Preparation of the balance sheet from the given

preparation of the balance sheet from the given transactions.the following events occurred at handsome hounds grooming

  Prepare the journal entry for mcevil

Prepare the journal entry for McEvil to record income taxes payable, deferred income taxes, and income tax expense .

  Assigned to the inspecting cost pool to products is

For its inspecting cost pool, Noah Company expected overhead cost of $69,822 and 1,178 inspections. The actual overhead cost for that cost pool was $57,797 for 1,870 inspections. The total cost that would be assigned to the inspecting cost pool to pr..

  Cash flow possibilities for the restoration costs

After the copper is extracted in approximately six years, Schefter is obligated to restore the land to its original condition, including constructing a park. The company’s controller has provided the following three cash flow possibilities for the re..

  Deductible for agi and deductible from agi

In each of the following endependent cases, indicate the amount (1) deductible for AGI, (2) deductible from AGI, and (3) neither deductible for nor from AGI before considering income limitations or the standard deduction.

  Shares of kebo common

On February 15, Seacroft buys 7,400 shares of Kebo common at $28.57 per share plus a brokerage fee of $415. The stock is classified as available-for-sale securities. On March 15, Kebo declares a dividend of $1.19 per share payable to stockholders of ..

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!

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