Journal entry to record their issuance by universal foods

Assignment Help Financial Accounting

Reference no: EM131296162

(Without the use of Charts)

Universal Foods issued 10% bonds, dated January 1, with a face amount of $140 million on January 1, 2013. The bonds mature on December 31, 2027 (15 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method.

1. Determine the price of the bonds at January 1, 2013.

2. Prepare the journal entry to record their issuance by Universal Foods on January 1, 2013.

3. Prepare the journal entry to record interest on June 30, 2013.

4. Prepare the journal entry to record interest on December 31, 2020.

Reference no: EM131296162

Questions Cloud

Accounts receivable and estimated uncollectible accounts : Fey Corporation has aged its accounts receivable and estimated uncollectible accounts as follows (in thousands). What bad debt expense should the company report for the current period?

Catering service on the accrual method : Bob operates a catering service on the accrual method. In November of year 1 Bob received a payment of $9,000 for 18 months of catering services to be rendered from December 1" of year 1 through May 31" year 3. When must Bob recognize the income if h..

Values per share of the preferred stock and common stock : If two years’ preferred dividends are in arrears and the preferred stock is callable at $65 per share, what are the book values per share of the preferred stock and the common stock? Raphael Corporation’s common stock is currently selling on a stock ..

Retailer sells expensive electronic circuit component : An online retailer sells an expensive electronic circuit component called EX123. Once every 3 months, a shipment of components is made to this retailer. Past data shows that the demand for EX123 over a 3-month interval is normally distributed with a ..

Journal entry to record their issuance by universal foods : Universal Foods issued 10% bonds, dated January 1, with a face amount of $140 million on January 1, 2013. The bonds mature on December 31, 2027 (15 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June ..

What is the predetermined manufacturing overhead rate : You work for Thunderduck Custom Tables Inc. This is the first month of operations. The company designs and manufactures specialty tables. Each table is specially customized for the customer. What is the ending balance for raw materials? What is the ..

What is the amount of bobs casualty loss deduction : Bob operates a plumbing business and this year the 3-year old van he used in the business was destroyed in a traffic accident. The van was originally purchased for $20,000 and the adjusted basis was $5, 800 at the time of the accident. Although the v..

Feature extensive selection of goods from particular brand : Dick’s Sporting Goods is scoring big points with custom- ers by setting up stores within stores that each feature an extensive selection of goods from a particular brand. The Pennsylvania-based retailer was founded in 1948 as a bait and tackle shop. ..

Why is cash management important to a company : Why is cash management important to a company? How does a cash budget enable a company to manage cash? What are some challenges associated with cash management?

User Account

All Pages