Journal entry to record issuance of bonds

Assignment Help Accounting Basics

Reference no: EM13144970

Worthington Company issued $1,000,000 face value , six-year, 10% bond on July 1, 2010, when the market rate of interest was 12%. Interest payments are due every July 1, and January 1. Worthington uses a calendar year-end.

1. Prepare the journal entry to record the issuance of the bonds on July 1, 2010.

2. Prepare the adjusting journal entry on December 31, 2010, to accrue interest expense.

3. Prepare the journal entry to record the interest payment on January 1, 2011.

4. Calculate the amount of cash that will be paid for the retirement of the bonds on the maturity date.

Reference no: EM13144970

Questions Cloud

Theory of electrostatics : Using the applications of the theory of electrostatics into the engineering of cables. It is now time for you to look into what is out there in the market place.

Estimating materials price variance : A company has a standard cost system. In July the company purchased and used 22,500 pounds of direct material at an actual cost of $53,000; the materials quantity variance was $1,875 unfavourable; and the standard quantity of materials allowed for..

Compute the work-in-process : Compute the work-in-Process transferred to the finished goods warehouse on April 30 using the following information:

What proportion of this population true-breeding double : She crosses the two lines together (aab+b+ x a+a+bb) to create a heterozygote (a+ab+b). Two heterozygotes are crossed together to create an F2 population. What proportion of this population will be true-breeding double mutant?

Journal entry to record issuance of bonds : Worthington Company issued $1,000,000 face value , six-year, 10% bond on July 1, 2010, when the market rate of interest was 12%. Interest payments are due every July 1, and January 1. Worthington uses a calendar year-end. 1. Prepare the journal en..

What is the probability of obtaining an offspring : In snapdragons, the genes A,B,C,D, and E assort independently of one another. If an Aa Bb Cc dd EE plant is crossed with an Aa bb cc Dd Ee plant, what is the probability of obtaining an offspring that is phenotypically dominant for all five traits..

Identify experimental design or observation study-survey : Identify whether it is an experiment or an observation study/survey. If experiment: identify experimental design, experimental units, factors & levels, response variable, and blocks (if any).

What proportion of the offspring would be heterozygous : In a particular type of melon, orange fruit is dominant over green fruit and round shape is dominant to oval. If a plant that was heterozygous for both traits were crossed with a plant that was homozygous recessive for both traits, what proportion..

Problem related to acquistion method : Bailey, inc. buys 60% of the outstanding stock of luebs, inc. Luebs owns a piece at cost of $200000 but was worth $500000 at acquistion date. What value should be attributed to this land in consolidated balance sheet at the date of takeover, Using..

User Account

All Pages