Reference no: EM132597339
Questions -
Q1- Daan Corporation wholesales repair products to equipment manufacturers. On April 1, 2016, Daan Corporation issued $4,500,000 of 6-year, 11% bonds at a market (effective) interest rate of 8%, receiving cash of $5,133,494. Interest is payable semiannually on April 1 and October 1.
a- Journalize the entry to record the issuance of bonds on April 1, 2016.
b- Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method. The bond premium amortization is combined with the semiannual interest payment. (Round to the nearest dollar.)
c- Why was the company able to issue the bonds for $5,133,494 rather than for the face amount of $4,500,000? The market rate of interest is _______ the contract rate of interest.
Q2- Adele Corp., a wholesaler of music equipment, issued $30,500,000 of 20-year, 10% callable bonds on March 1, 20Y1, at their face amount, with interest payable on March 1 and September 1. The fiscal year of the company is the calendar year.
Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles.
20Y1
Mar. 1 Issued the bonds for cash at their face amount.
Sept. 1 Paid the interest on the bonds.
20Y5
Sept. 1 Called the bond issue at 104, the rate provided in the bond indenture. (Omit entry for payment of interest.)
What industries or product categories could
: What industries or product categories could if diversify into that would allow it to achieve economies of scale? Identify at least two or three such industries.
|
Find the accrued interest in dollar amount would be
: Find the accrued interest in dollar amount would be, pays interest every 364 days just paid interest 54 days ago, if the par value on the bond is $1,000
|
International actors and perspectives
: Analyze at least two major problems associated with U.S.-based disaster relief coordination and response at the international level.
|
Determine the amount of the bond interest expense
: On the first day of its fiscal year, Chin Company issued $17,000,000 of five-year, Determine the amount of the bond interest expense
|
Journalize the entry to record the first interest payment
: Journalize the entry to record the first interest payment on October 1, 2016, and amortization of bond premium for six months, using the straight-line method
|
Which is an example of an exempt organization
: Which is an example of an exempt organization that may be subject to unrelated business income tax? When canceled debt is jointly held by both spouses
|
Prepare the journal entries to record interest received
: Prepare the journal entries to record interest received and interest income on December 31, 2022, and the maturity of the bond
|
Evaluating the arguments of the antifederalists
: Evaluating the arguments of the Antifederalists (particularly Brutus) with those of the Federalist Publius over the adoption of the Constitution of 1787.
|
Make the journal entry a company records for the issuance
: Make The journal entry a company records for the issuance of bonds when the contract rate and the market rate are the same is to
|