User Account

All Pages

How to make general journal entry to record interest payment

Assignment Help Accounting Basics
Reference no: EM132765467

Question: On January 1, 2020, Logan Corporation sold $600,000 of 8% bonds at $570,000. The bonds are due on January 1, 2025 and pay interest semiannually every July 1 and January 1. The bonds were sold to yield a 10% effective rate. Logan closes its books annually on December 31.

(a) How do i make the general journal entry to record the sale of the bonds.

(b) Not sure how to make the general journal entry to record the interest payment on July 1, 2020, assuming that Logan uses the effective interest method to amortize the bond discount.

(c) Can you please explain general journal entry to record the interest accrual on December 31, 2020, assuming that Logan uses the effective interest method to amortize the bond discount.

Reference no: EM132765467

Questions Cloud

What is the total compensation cost for the plan : What is the total compensation cost for this plan? The options cannot be exercised before January 1, 2024, and expire December 31, 2025.
Adults in hardy-weinberg equilibrium : Suppose that these individuals were to mate at random. What would be the frequency of the A and S alleles among the gametes that they produced?
How long did take on average for credit customers to pay : Credit sales for the year just ended were €3,890,145. How long did it take on average for credit customers to pay off their accounts during the past year?
Prepare the revised statement of income complying : Upon completing her first year of business as a hair dresser, Prepare the revised statement of income complying with the accrual concept.
How to make general journal entry to record interest payment : Not sure how to make the general journal entry to record the interest payment on July 1, 2020, assuming that Logan uses the effective interest method.
Describe what happens as the apple moves through : Describe what happens as the apple moves through the digestive system in colon and anus. include information about what happens to the material in the apple
What interest rate would you expect to pay on the issue : The current 10-year Treasury bond rate and 10-year TIPS rates are 3% and 1%, respectively. What interest rate would you expect to pay on the issue
Show the bad debts and allowance for doubtful debt : A business had always made an allowance for doubtful debts, Show the bad debts and allowance for doubtful debt at 31 December 2020.
Differences between the philosophies of wellness : Discuss the similarities and differences between the philosophies of wellness.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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