Payments of interest and amortization of discount

Assignment Help Financial Accounting

Reference no: EM131214374

On January 1, 2010 Lurline Corporation issued ten-year, 8 percent bonds with a face value of $500,000. The semiannual interest dates are June 30 and December 31. The bonds were issued for $437,740 to yield an effective annual rate of 10 percent. The accounting period year ends on December 31. Prepare entries in a journal form without explinations to record the bond issure on January 1, 2010 and the payments of interest and amortization of discount on June 30 and December 31. Use the effective method of amortization. Record answers to the nearst dollar.

Reference no: EM131214374

Questions Cloud

Existing internal control system over cash admission fees : Lobs, Love & Lessons Tennis Club The Lobs, Love & Lessons Tennis Club is a large, regional chain of full-service tennis clubs that cater to the demographics of the region (about 60% of all adults are single in most locations). Assume that you are the..

Each month showing budgeted cash disbursements : Tilson Company has projected sales and production in units for the second quarter of the coming year as follows. Cash-related production costs are budgeted at $7 per unit produced. Of these production costs, 40% are paid in the month in which they ar..

Prepare budget showing quantity of switches to be purchased : A sales budget is given below for one of the products manufactured by the Key Co.: The inventory of finished goods at the end of each month must equal 20% of the next month's sales. On December 31, the finished goods inventory totaled 4,000 units. Ea..

What type of lease is this for talkaholics : Talkaholics Inc. leased a satellite transmission device from ACME Satellites on January 1, 2016. ACME paid $1,000,000 for the satellite which retails for $1,307,362. What type of lease is this for Talkaholics? Explain. Prepare the appropriate entries..

Payments of interest and amortization of discount : On January 1, 2010 Lurline Corporation issued ten-year, 8 percent bonds with a face value of $500,000. The semiannual interest dates are June 30 and December 31. Prepare entries in a journal form without explinations to record the bond issure on Janu..

What is the approximate production cost for each paper sheet : Bismite Corporation purchases trees from Cheney lumber and processes them up to the splitoff point where two products (paper and pencil casings) are obtained. If the sales value at splitoff method is used, what is the approximate production cost for ..

Adjusting entry to record allowance for doubtful accounts : While performing an audit on your client you note the following balances in the client's aging of accounts receivable 91+ days bucket: Total receivables as of the balance sheet date are 1,000,000. The client historically has recorded an allowance for..

Calculate the number of units of product : Able Company expects to begin the coming year with 12,000 units of product X in the inventory of finished goods. It expects to sell 130,000 units of the product and end the year with 15,800 units in finished goods inventory. Calculate the number of u..

User Account

All Pages