Reference no: EM13784870
The following transactions were completed by Montague Inc., whose fiscal year is the calendar year: 2014 July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 2014, at a market (effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semian- nually on December 31 and June 30. Oct. 1. Borrowed $450,000 by issuing a six-year, 8% installment note to Intexicon Bank. The note requires annual payments of $97,342, with the first payment oc- curring on September 30, 2015. Dec. 31. Accrued $9,000 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Paid the semiannual interest on the bonds. The bond premium is amortized an- nually in a separate journal entry. 31. Recorded bond premium amortization of $390,852 which was determined using the straight-line method. 31. Closed the interest expense account. 2015 June 30. Paid the semiannual interest on the bonds. The bond premium is amortized annually in a separate journal entry. Sept. 30. Paid the annual payment on the note, which consisted of interest of $36,000 and principal of $61,342. Dec. 31. Accrued $7,773 of interest on the installment note. The interest is payable on the date of the next installment note payment. 31. Paid the semiannual interest on the bonds. The bond premium is amortized annually in a separate journal entry. 31. Recorded bond premium amortization of $781,704, which was determined using the straight-line method. 31. Closed the interest expense account. 2016 June 30. Recorded the redemption of the bonds, which were called at 103. The bal- ance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded. (Record the redemption only.) Sept. 30. Paid the second annual payment on the note, which consisted of interest of $31,093 and principal of $66,249.
Instructions
1. Journalize the entries to record the foregoing transactions.
2. Indicate the amount of the interest expense in (a) 2014 and (b) 2015.
3. Determine the carrying amount of the bonds as of December 31, 2015.
|
What is ability to fast migrate virtual guest machines
: Describe at least 3 physical components of virtual infrastructure and what role each of them component servers? what is the ability to fast migrate virtual guest machines from one data center to another for high availability and disaster recovery.
|
|
Which should be the province of criminal law
: Which of the crimes against morals would you leave to religion and conscience, and which should be the province of criminal law? Why
|
|
About individual versus group-level performance recognition
: individual versus group-level performance recognition.
|
|
Physical components of virtual infrastructure
: Describe at least 3 physical components of virtual infrastructure and what role each of them component servers? Describe at least 3 things which can be done to secure/protect or maintain the security in a virtual infrastructure?
|
|
Journalize the entries to record the foregoing transactions
: Journalize the entries to record the foregoing transactions. Indicate the amount of the interest expense in (a) 2014 and (b) 2015. Determine the carrying amount of the bonds as of December 31, 2015.
|
|
Calculate the contribution margin ratio
: Calculate the break-even in units - calculate the contribution margin ratio and calculate the break-even in sales dollars.
|
|
Issue
: .Which type of air pollutant is known to cause more damage to crops and native plants than all other air pollutants combined?
|
|
Several merchants signed a binding arbitration agreement
: Several merchants signed a binding arbitration agreement with American Express Co. The arbitration agreement included a clause prohibiting class action arbitration. Later, after a serious dispute arose involving a federal statute, the merchants wante..
|
|
Media portrayals of the profession of psychology
: If information on credibility is not clearly provided, identify the character's role (psychologist, counselor, etc.) and describe the likely level of education, type of licensure, and estimated number of years of experience. Does the character see..
|