Journalize the entry to record the first interest payment

Assignment Help Accounting Basics
Reference no: EM132990016

Problem - On the first day of the fiscal year, a company issues an $683,000, 9%, 5-year bond that pays semi-annual interest of $30,735 ($683,000 x 9% x 1/2), receiving cash of $642,000. Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method.

Reference no: EM132990016

Questions Cloud

Mediation or nonbinding arbitration : The state in which Sue resides requires that her dispute with Tipton be submitted to mediation or nonbinding arbitration.
Components in scoring and test interpretation : Identify 2 key components in scoring and test interpretation. What are some of the most important factors in selecting and administering self-report inventories
Prepare the journal entries in the books Smith Ltd : The rate of interest implicit in the lease is 12%. Prepare the journal entries in the books Smith Ltd for the years ending 30 June 2020 and 30 June 2021
Capability of business analytics in future : What is one thing you would like to see implemented as a capability of business analytics in the future?
Journalize the entry to record the first interest payment : Journalize the entry to record the first interest payment and the amortization of the related bond discount using the straight-line method
What will be his estimated retirement expenses : Edward plans to retire in 15 years. His current household expenses are $94000 per year. What will be his estimated retirement expenses
Research haptics and technologies : Research haptics and the technologies used to create a haptic device.
Journalize the entries to record the purchase : On April 2 a corporation purchased for cash 6,000 shares of its own $11 par common stock at $26 a share. Journalize the entries to record the purchase
What amount of capital dividend each shareholder receive : August 6, 2020: Building (2 Backwater St.) $175,000 (land $55,000 and buildings $120,000). What amount of Capital Dividend will each shareholder receive

Reviews

Write a Review

Accounting Basics Questions & Answers

  What amount should be debited to the patent account

Crane paid cash of $46000 to the seller. Legal fees of $2700 were paid related to the acquisition. What amount should be debited to the patent account

  Revenues and gains in the statement of activities

Which of the following items would not be reported in the section on revenues and gains in the statement of activities of a private college or university?

  Advantages or disadvantages of using the cash basis method

Discuss some of the advantages or disadvantages of using the cash-basis method of accounting. Provide some examples.

  Aicpa code of professional conduct does work

In light of the business scandals of the last few years, does the AICPA's Code of Professional Conduct work? What is the area of greatest concern?

  What amount will be used to capitalize

Knope Company has signed a capital lease contract for equipment that required annual rental payments of $40,000. What amount will be used to capitalize

  Annual income without the special order

Prepare a three-column comparative income statement that reports the Annual income without the special order - Should Calla accept the order?

  Provide the journal entry to record issuance of the bonds

On January 2, 2006, Picard Enterprises issued $2,400,000 of 8 percent, Provide the journal entry to record issuance of the bonds

  What is the net book value of the equipment held by zane

Equipment was purchased at a cost of $525,000 on March 1, 20X8, What is the net book value of the equipment held by Zane as at December 31, 20X8

  What is the payback period

The annual cash flows are expected to increase by $150,000 per year. The machine has an eight-year useful life. What is the payback period

  Determine the number of employees from each experience level

ACCOUNTING/PERSONNEL HIRING. Jones. Jimenez, and Sihota (JJS) is expanding its tax service business into the San Antonio area.

  The income tax rate is 30 there were 25000 shares of common

the information below is taken from the december 31 2014 adjusted trial balance of rummer company all numbers are

  What is the maximum amount he can borrow

Assuming Michael can borrow up to 80 percent of the market value of his home, what is the maximum amount he can borrow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd