User Account

All Pages

How are given bonds reported in long-term liability section

Assignment Help Accounting Basics
Reference no: EM131810112

Problem

On December 31, 2012, a company issues 16%, 10-year bonds with a par value of $100,000. Interest is paid on June 30 and December 31. The bonds are sold to yield a 14% annual market rate at an issue price of $110,592. Use this information to answer questions 7 through 9:

1. Are these bonds issued at a discount or a premium? Explain your answer.

2. Using the straight-line method to allocate bond interest expense, the issuer records the second interest payment (on December 31, 2013) with a debit to Premium on Bonds Payable in the amount of (a) $7,470, (b) $530, (c) $8,000, or (d) $400.

3. How are these bonds reported in the long-term liability section of the issuer's balance sheet as of December 31, 2013?

Reference no: EM131810112

Questions Cloud

Purchase of new drilling equipment : Paraded Jewel, Inc., is considering the purchase of new drilling equipment. The new equipment (two choices) is expected to increase production
What is the average of the third list : One list of 100 numbers contains 20% ones and 80% twos. A second list of 100 numbers contains 50% threes and 50% fives.
Discuss what can you do to exploit your strength : What can you do to exploit your strength and what can you do to develop your weaknesses
Which has the lower eac : Old McDonald Farm, Inc., a large profitable crop farm, must replace its planting equipment. The farm expects all investments to return at least 8%.
How are given bonds reported in long-term liability section : How are these bonds reported in the long-term liability section of the issuer's balance sheet as of December 31, 2013?
What was the total amount of sales tax paid in 2014 : Show the effect of the above transactions on a statements model like the one shown below.
Compute depletion and depreciation on the mining equipment : Compute depletion and depreciation on the mine and mining equipment for 2016 & 2017. The Units of production method is used to calculate depreciation.
Briefly consider whether or not there is a taxable : Briefly consider whether or not there is a taxable supply by Mr Liang for Australian GST purposes
Journalize the entries to record the transactions of capers : Journalize the entries to record the transactions of Capers Company for October ( only need entries for October 3-20)

Reviews

Write a Review

Accounting Basics Questions & Answers

  On july 1 2010 finley corporation reacquired 1000 shares of

in january 2010 finley corporation a newly formed company issued 10000 shares of its 10 par common stock for 15 per

  Find out the contribution margin ratio

Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $14 of variable costs to make. During April, 1,000 drives were sold.

  How much fixed manufacturing overhead cost was deferred

Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports.

  Windhoek mines ltd of namibia is contemplating the purchase

windhoek mines ltd. of namibia is contemplating the purchase of equipment to exploit a mineral deposit on land to which

  A system of accounting in which revenues and expenses are

nbspnbspnbspnbsp1.nbspnbspnbspnbspaccounts that are not closed to a zero balance at the end of each

  Determine the proceeds of the bond sale

Determine the proceeds of the bond sale on 1/1/15. Explain your method of calculation. repare the six-year bond amortization schedule for these bonds

  Impact of risk on wacc

The Nunnally Company has equal amounts of low-risk, and high-risk projects. Nunnally estimates that is overall WACC is 12%. The CFO believes that this is the correct WACC for the company's average-risk projects

  Relationship between different factors and sample size

For each of the following independent sets of conditions, determine the appropriate sample size for the examination of Warner's accounts receivable in MUS.

  How much money did harold spend to purchase the shares

Harold Perto purchased 100 shares of Barclays, a U.K. financial services firm, when they were trading for £260 (pounds sterling) and the exchange rate.

  Calculate the bond interest expense for year ended december

Baker records straight-line amortization of the bond discount. Calculate the bond interest expense for year ended December 31, 2016

  Describe your approach to setting up your worksheets and

you currently work for an automotive parts supply store. your company is growing and is considering expansion. the

  Case of internal controls in x company and ms smith

On a warm summer day in early July 2011, Ms. Smith of the executive team of X Company sat in her office preparing a request form for routine travel expense reimbursement. She attached documentation in support of the cost of the air travel portion ..

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