User Account

All Pages

Effects of a premium bond issue

Assignment Help Accounting Basics
Reference no: EM13972922

Recording the Effects of a Premium Bond Issue and First Interest Payment (Effective-Interest Amortization)

Grocery Corporation received $312,341 for $260,000, 11.0 percent bonds issued on January 1, 2008, at a market interest rate of 8.0 percent. The bonds stated the interest would be paid  each December 31 and that they mature on December 31, 2017 and assume Grocery Corporation uses the effective-interest method to amortize the bond premium.

Required:

Prepare the journal entry to record the bond issues.

Reference no: EM13972922

Questions Cloud

Replenishment of the petty cash fund : On March 20, Garber's petty cash fund of $100 is replenished when the fund contains $47 in cash and receipts for postage $31, supplies $16, and travel expense $6. Prepare the journal entry to record the replenishment of the petty cash fund.
Determine the payback period : Norman uses straight-line depreciation. Expected revenue is $25,000 per year. Assume that depreciation is the only expense associated with this investment. Required a. Determine the payback period. (Round your answer to 1 decimal place.) (years)
How have these relationships evolved over time : Discuss how politicians have traditionally benefited from partnerships with organized crime and how criminal figures have benefited from a reciprocal relationship
New equipment after the exchange : Koch exchanges business equipment with an adjusted basis of $40,000 for business equipment with a fair market value of $65,000. If the exchange qualifies for like-kind exchange treatment, what is Koch's adjusted basis for the new equipment after t..
Effects of a premium bond issue : Grocery Corporation received $312,341 for $260,000, 11.0 percent bonds issued on January 1, 2008, at a market interest rate of 8.0 percent.
Calculate the appropriate test statistic : If you live in California, the decision to buy earthquake insurance is an important one. A survey revealed that only 133 of 350 randomly selected residences in one California County were protected by earthquake insurance. Calculate the appropriate te..
Political satire and corruption review the political cartoon : Find a similiar type of cartoon and describe the message of the artist as well as identify where you would add (or who would be replaced) to factor in organized crime influence
What is the trade offs between the two approaches : List the costs and benefits of having an internal staffing focus. Then list the cost and benefits of having an external staffing focus. What is the trade-offs between the two approaches?
Find the analytical solution to the differential equation : Find the analytical solution to the differential equation and Express the second order ODE as a system of two first order ODEs

Reviews

Write a Review

Accounting Basics Questions & Answers

  Manufacturing and customer cost hierarchy

Use a selected company or your current work environment to identify at least one cost or expense that would fit under each of the following categories:

  Components of measuring the economic damages

What are the components of measuring the economic damages from the loss of household services?

  Mobey and oak are family practice physicians

Doctors Mobey, Oak, and Chesterfield have been in a group practice for several years.

  What is the amount of the refund owed to the customer

What is the amount of the refund owed to the customer and journalize the entries made by the seller to record the return and the refund.

  Tonga toys manufactures and distributes a number of

tonga toys manufactures and distributes a number of products to retailers. one of these products playclay requires

  Sparks company received proceeds of 423000 on 10-year 8

sparks company received proceeds of 423000 on 10-year 8 bonds issued on january 1 2013. the bonds had a face value of

  Charter company does not divide costs into fixed and

charter company does not divide costs into fixed and variable components. personnel costs are allocated based on the

  Whats the meaning behind the search for the purple squirrel

1. what does this case imply about the supply of and demand for employees and the implications for businesses?2. whats

  Discontinuing a product or segment is a huge decision that

discontinuing a product or segment is a huge decision that must be carefully analyzed. which of the valid reason not to

  How is the value of a bond determined

How is the value of a bond determined? What is the value of a 10- year, $1000 par value bond with a 10% annual coupon if its required rate of return is 10%

  What is callable preferred stock

What is callable preferred stock? Why do corporations issue such stock? Given the different features that are associated with stock (callable, cumulative, preferred, etc.), what type of stock would you want to buy personally and why?

  Conversion costs during particular month

Mahaska estimates the ending work-in process (EWIP) inventory to be 20% complete with respect to conversion costs. (Because all materials are added at the start of the process, ending WIP is 100% complete with respect to materials). Finally, Mahas..

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