How much interest expense will be recorded for the period

Assignment Help Accounting Basics
Reference no: EM13131388

On November 1, 2015, Archangel Services issued $200,000 of 10-year bonds with a stated rate of 3%. The bonds were sold at discount for $191,000, and make semiannual payments on April 30 and October 31. At December 31, 2015, Archangel made an adjusting entry to accrue interest at year end. No further entries were made until April 30, 2016 when the first interest payment was made. How much interest expense will be recorded for the period of January through April, 2016?

Reference no: EM13131388

Questions Cloud

What is the standard error of the mean : A standard deviation of 36 donuts. If a sample of 16 stores results in a sample average of 249 donuts what is the standard error of the mean?
Prepare an adjusting entry to record the year end fair value : Prepare an adjusting entry, if necessary, to record the year-end fair values adjusting for the portfolio of short-term investment in available –for-sale securities.
Auditing-professional standards : In auditing a privately held entity, an auditor must follow the professional standards established by all of the following except:
The imidazole ring system has a great deal of aromatic : Important information about Imidazole. The imidazole ring system has a great deal of aromatic character. Can you formulate two resonance structures that account for the characteristics?
How much interest expense will be recorded for the period : On November 1, 2015, Archangel Services issued $200,000 of 10-year bonds with a stated rate of 3%. The bonds were sold at discount for $191,000, and make semiannual payments on April 30 and October 31.
Why monthly sales have changed statistically : During the last year sales averaged $22,000 per month. Does this indicate that monthly sales have changed (in a statistically significant sense)? Use  0.05. Assume monthly sales are normally distributed.
Question regarding equivalence relations : Verify that each of the following are equivalence relations on the plane R^2 (where R are real numbers) and describe the equivalence classes geometrically.
Write a packet filtering rule : Write a packet filtering rule that will block the hosts in 131.204.0.0/16, i.e., the internal network, with the exception of mail server 131.204.128.3, from delivering the mail to outside mail servers.
What is the ph of a buffer prepared by combining : a step by step answers for those Question please. Please be brief. What is the PH of a buffer prepared by combining 25mL of 0.1M nitrous acid with 25mL of 0.1M sodium nitrite?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Problem regarding debt investments

Debt investments are recorded at the : a. face value of the bonds purchased. b. face value of the bonds purchased plus interest. c. price paid for the bonds plus interest. d. price paid for the bonds plus brokerage fees

  Derivative instruments and investment classification

Write down the differences between traditional and derivative instruments. Why do companies use derivative instruments? Are derivatives a good investment?

  Average costs and variable costs

What problems are associated with using the average cost per unit as a performance measure? What problems are associated with using the variable cost per unit as a performance measure?

  Recognized gross profit on installment sale

Kyle sold land on the installment basis for $100,000. His basis in the land was $70,000. Kyle received a $40,000 down payment and a real estate installment sale contract calling for $60,000 in additional payments in future years.

  Long-formal accounting reports

What are some examples of long formal reports? When might an accounting department or accounting firm use these reports?

  Affecting the taxable income of owners

Sara owns a sole proprietorship and Phil is the sole shareholder of a C (regular) corporation. Each business sustained a $9,000 operating loss and a $2,000 capital loss for the year. Evaluate how these losses will affect the taxable income of the ..

  Prepare the company cash budget for june in good form

Prepare the company's cash budget for June in good form. Make sure to indicate what borrowing, if any, would be needed to attain the desired ending cash balance.

  Partnership assets and the agreed fair market values

At the end of the year prior to the sale, Rita's basis in RSTU was $60,000. The partnership allocates $12,000 of income to Rita for the portion of the year she was a partner. On the date of the sale, the partnership assets and the agreed fair mark..

  Question on private business competition

Choose an article on Private Business Competition from a professional, economic, or management journal published in the last ten years such as The Freeman: Ideas On Liberty, The Economist, Forbes, The Cato Journal, Harvard Business Review, or Sloa..

  How much dividend income does speedways have

a. How much dividend income does Speedways have?  b. How much and what kind of taxable income does Speedways have because of the distribution?  c. What is Speedways's basis in its stock immediately after the distribution?

  South western federal taxation exercises

Discuss the key factors that should be considered when determining whether an item should be expensed. Speculate how Joe Carter arrived at his decision to expense the carpets replaced in the apartments.

  Basics related to internal auditors

Early in January 2011, the internal auditors for Arkansas Inc. discovered these errors and omissions in their review of the 2010 financial records. Arkansas Inc. has not yet closed its books for 2010.

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