Interest has accrued at 8 on the long-term notes payable

Reference no: EM13605545

Interest has accrued at 8% on the long-term notes payable since July 1, 2010. The next six-month interest payment at 9% on the bonds is due on March 1, 2011. The discount on bonds payable has not been amortized for any part of 2010; the bonds are dated March 1, 2004, and mature March 1, 2014. (Use straight-line).

I'm doing adjusting entry for the year end December 31, 2010.

Account Balances:

Notes Payable Acct. (LT Liability)
1/1 Balance 43,000
7/1 Increased Mortgage (credit 70,000) balance 113,000

Bonds Payable
1/1 (issued 3/1/04) 275000 (maturity 3/1/14)

Discount on bonds payable
1/1 4400

Interest Expense 4090
Interest Payable 4090

For the discount amortization would I just divide the remaining balance of discount on bonds payable by the remaining payments, or am I forgetting some steps. It does not seem like it should be that simple for some reason.

Reference no: EM13605545

Questions Cloud

If sales are budgeted to be 150000 for march and 200000 for : big wheel inc. collects 25 of its sales on account in the month of the sale and 75 in the month following the sale. if

The cost of parking is 9 per day suppose that if you were : the cost of parking is 9 per day. suppose that if you were to park illegally the probability of getting a ticket is

Lutz corporation acquired a 100 business-use automobile : lutz corporation acquired a 100 business-use automobile macrs 5-year recovery on july 1 2012 for 64000. the company did

If the company is able to reduce variable costs by 250 per : the income statement for bradford machine company for 2011 appears below. bradford machine company income statement for

Interest has accrued at 8 on the long-term notes payable : interest has accrued at 8 on the long-term notes payable since july 1 2010. the next six-month interest payment at 9 on

Assess the use of qualitative data to support business : assess the use of qualitative data to support business decision making. consider different tyoes of qualitative data

Te inventory at may 1 and the costs charged to work in : the inventory at may 1 and the costs charged to work in process--department b during may for stella company are as

If the wait time is less than 10 minutes you pay 2 if it : the wait time minutes you experience waiting for a bus is modeled by t10x-10 x is randon variable have prob. density

The direction of the beam is then slowly rotated around an : a laser beam with a wavelength of 532 is directed exactly perpendicular to a screen having two narrow slits spaced

User Account

All Pages