Reference no: EM131763541
Problem 1 - On the first day of its fiscal year, Ellis Company issued $12,000,000 of five-year, 10% bonds to finance its operations of producing and selling home improvement products. Interest is payable semiannually. The bonds were issued at an effective interest rate of 12%, resulting in Ellis Company receiving cash of $11,116,854.
a) Journalize the entries to record the following:
1. Sale of the bonds
2. First semiannual interest payment. (Amortization of discount is to be recorded annually.)
3. Second semiannual interest payment.
4. Amortization of discount at the end of the first year, using the straight-line method. (Round to the nearest dollar.)
Problem 2 - Burtard Company develops and sells graphics software for use by architects. Journalize the entries to record the following selected transactions of Burtard Company:
A. Purchased for cash $450,000 of Blaga Co. 8% bonds at 97 plus accrued interest of $9,000.
B. Received first semiannual interest.
C. Amortized $1,080 of the bond investment at the end of the first year.
D. Sold the bonds at 101 plus accrued interest of $3,000. The bonds were carried at $442,440 at the time of the sale.
|
Current yield of the bond of the bond
: 19 years to maturity and pat value of $1,000. What is the current yield of the bond of the bond is selling st $1,245.
|
|
Does this mean that gold will grow faster than blue
: The Gold Company earned 18 percent on equity, whereas the Blue Company earned only 14 percent on equity. Does this mean that Gold will grow faster than Blue?
|
|
Why ethics and confidentiality play an integral role
: How the process will need to be altered for various special populations.Why ethics and confidentiality play an integral role when working with clients.
|
|
Compute the amount of unrealized intra-entity profit
: Yukon Co. acquired 75% percent of the voting common stock of Ontario Corp. on January 1, 2013. During the year, Yukon made sales of inventory to Ontario.
|
|
Journalize the entries to record the sale of the bonds
: Journalize the entries to record the following: Sale of the bonds and Second semiannual interest payment
|
|
Identify the challenges confronting managers
: Identify the challenges confronting managers within the context of global environment, international and domestic issues, employee compensation and diversity.
|
|
What is the cross rate between the yen and the peso
: What is the cross rate between the yen and the peso; that is, how many yen would you receive for every peso exchanged?
|
|
Prepare journal entries to record income tax expense
: Prepare journal entries to record income tax expense, income tax payable, and effect from loss carryback & loss carryforward.
|
|
Create a philosophy and approach for balancing the issues
: Create a philosophy and approach for balancing the issues of individual rights and the public's protection.
|