How much discount on bonds payable would be recorded

Assignment Help Financial Accounting

Reference no: EM131290272

On 1/1/2014 the Jackson Co. has a $40,000 debt outstanding which matures on 12/31/16. Interest which is payable on Dec. 31 of each year, was last paid on 12/31/13.. Jackson negotiates a restructure in which the 3 remaining interest payments are $2,400 each and the amount to be paid at maturity is $38,739. Using the effective interest method, how much interest expense is recognized on the debt for the year ending 12/31/14?

1. In recording the bond issue following GAAP, HTL would credit equity by how much?

2. In recording the bond issue, how much discount on bonds payable would be recorded?

Reference no: EM131290272

Questions Cloud

Decide to form a partnership : Jerry Graves and Bonnie Moss decide to form a partnership. Graves will contribute $300,000 to the partnership, while Moss will contribute only $30,000. However, Moss will be responsible for running the day-to-day operations of the partnership, which ..

Abundance of electronic documents and means : Do you think printers are becoming obsolete with the abundance of electronic documents and means to view them? How well do you think an organization could function without printers? What are the pros and cons of such a scenario?

After reading about global business : After reading about global business - what would you say are the two biggest challenges for any company that wants to be a global contender? How might a company overcome these challenges? Do you think all companies today should have a global presence..

How should care be provided for your cultural group : Identify three culturally sensitive nursing diagnoses from your client's cultural perspective.How should you plan to provide care for your cultural group?

How much discount on bonds payable would be recorded : On 1/1/2014 the Jackson Co. has a $40,000 debt outstanding which matures on 12/31/16. Interest which is payable on Dec. 31 of each year, was last paid on 12/31/13.. In recording the bond issue following GAAP, HTL would credit equity by how much? In r..

Share any careers that you have come across : Constructively evaluate your classmates' decisions based on their strengths and weaknesses. Share any careers that you have come across that your classmates may be interested in based on their strengths and weaknesses.

Amount of interest accumulated at the time of? retirement : Emily? Dorsey's current salary is ?$78,000 per? year, and she is planning to retire 28 years from now. She anticipates that her annual salary will increase by ?$2,000 each year ?($78,000 the first? year, to ?$80,000 the second? year, ?$82,000 the thi..

Describe h-ds competitive advantage in global markets : Describe H-D's competitive advantage in Global Markets. Determine and explain entry strategies for global expansion. Organizational Design: As you have been completing the Strategic Business.

Complete the table and also write a narrative paragraph : Complete the table and also write a narrative paragraph.- Responses should be in narrative paragraph form and should have a clear.

User Account

All Pages