User Account

All Pages

Prepare a journal entry that Allie will record

Assignment Help Accounting Basics
Reference no: EM133079071

Question - On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. It was sold at $464,000 with effective interest rate of 9%. On 1/1/2020, Choco purchased all of Allie's bond for $532,000 cash with effective interest at 7% and Allie's bonds payable has been effectively retired.

Required -

1) What is Allies' book value of $500,000 bonds payable on 1/1/2020?

2) Prepare a journal entry that Choco will record on 1/1/2020 regarding purchase of Allie's bond.

3) Compute the consolidated gain or loss on a consolidated income statement for at the end of 2020.

4) Prepare a journal entry that Allie will record for bond interest expense on 12/31/2020.

Reference no: EM133079071

Questions Cloud

Globalization is something that further divides the world : To what extent do you agree or disagree on the statement that "Globalization is something that further divides the world." Give concrete examples or related cir
How many units would the company have to sell : The company's fixed expenses are $200,000 per month. How many units would the company have to sell to attain target profits of $50,000
Concern for management and decision-making process : Many factors affect the demand for a product, which is a concern for management and the decision-making process.
Designs for living and learning : Who are we? Where do we come from? Where do we see ourselves reflected or represented?
Prepare a journal entry that Allie will record : On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. Prepare a journal entry that Allie will record for bond interest expense on 12/31/2020
Venture concept dashboard : Develop and discuss some components of a "venture concept dashboard" that can aid you in constructing your venture concept.
Monopoly maximizes profit by setting mr : Suppose a monopoly faces demand given by P = 24 - Q and has a cost function given by C = 10 + 4Q.
How many shares of XYZ common stock were outstanding : Laws in XYZ's state of incorporation protect treasury stock from dilution. At December 31, year 2, how many shares of XYZ's common stock were outstanding
Review human resource management principles : Your team needs to review human resource management principles from some of the countries listed below to determine if country is a good fit for organization.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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