Reference no: EM13867539
Refer to PB10-6. Assume Methodical uses the effective-interest bond amortization method.
Refer PB10-6
On January 1, 2015, Methodical Manufacturing issued 100 bonds, each with a face value of $ 1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2017. On the issue date, the market interest rate was 4.25 percent, so the total proceeds from the bond issue were $ 102,070. Methodical uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year.
Required:
1. Prepare a bond amortization schedule.
2. Give the journal entry to record the bond issue.
3. Give the journal entries to record the interest payments on December 31, 2015 and 2016.
4. Give the journal entry to record the interest and face value payment on December 31, 2017.
5. Assume the bonds are retired on January 1, 2017, at a price of 101. Give the journal entry to record the bond retirement
|
The company had a retained earnings balance
: At the beginning of 2010, Norris Company had a deferred tax liability of $6,400, because of the use of MACRS depreciation for income tax purposes and units-of-production depreciation for financial reporting.
|
|
Differences between financial statement & income tax return
: Chris Green, CPA, is auditing Rayne Co.'s 2010 financial statements. For the year ended December 31, 2010, Rayne is applying GAAP for income taxes.
|
|
Develop a chart depicting the information of the results
: One of the most popular candies in the United States is M&M's, which are produced by the Mars Company. Develop a chart depicting this information and write a paragraph summarizing the results.
|
|
Which measurement focus is used in each fund category
: Which measurement focus is used in each fund category?
|
|
Give the journal entry to record the bond issue
: Prepare a bond amortization schedule. Give the journal entry to record the bond issue. Give the journal entries to record the interest payments on December 31, 2015 and 2016. Give the journal entry to record the interest and face value payment on Dec..
|
|
What is the rationale behind the ols estimation method?
: What is the rationale behind the OLS estimation method?
|
|
From which sampling strategy would your study benefit
: Consider the following questions: From which sampling strategy would your study benefit? What factors contribute to this decision? What sample size would you use for the study that you are planning? What factors contribute to this decision
|
|
Gis study for a place called brookley field
: GIS study for a place called Brookley Field, Mobile, Alabama ( Go Google maps).
|
|
A substantial amount of weiss company''s revenues
: It is the end of 2011, and the auditing firm for which you work is auditing the Weiss Company for the first time. Prior to 2011, Weiss was audited by another firm. A substantial amount of Weiss Company's revenues for 2010 came from installment sales...
|