Reference no: EM131810203
Assignment
Wilburn Corporation issued $1 million of 13.5% bonds for $985,017.68. The bonds are dated and issued October 1, 2013, are due September 30, 2017 and pay semi-annually on March 31 and September 30. Assume an effective yield rate of 14%.
1. Prepare a bond interest expense and discount amortization schedule using straight-line method and effective interest method.
2. Prepare adjusting entries for the end of the fiscal year December 31, 2013, using the: straight-line and effective interest methods.
3. If income before interest and income taxes of 30% in 2014 is $500,000, compute net income under each alternative.
4. Assume the company retired the bonds on June 30, 2014, at 98 plus accrued interest. Prepare the journal entries to record the bond retirement using the: straight-line and effective interest methods.
5. Compute the company's times interest earned (pretax operating income divided by interest expense) for 2014 under each alternative.
|
Prepare the stockholders equity section of the balance sheet
: The following stockholders' equity accounts, arranged alphabetically, are in the ledger of Eudaley Corporation at December 31, 2017.
|
|
Provide a summary of information the video contained
: Watch at least two videos, briefly describe one of the videos viewed, and provide a summary of information the video contained and how it fits in with this unit
|
|
Assume an interest rate of 8% and a perpetual life
: What annual benefit is required for B/C = 1? Assume an interest rate of 8% and a perpetual life.
|
|
Determining that the distribution of scores is symmetric
: Find a smaller upper bound on the number of scores exceeding 130 assuming the distribution of scores is symmetric about 100.
|
|
Prepare adjusting entries for the end of the fiscal year
: Prepare adjusting entries for the end of the fiscal year December 31, 2013, using the: straight-line and effective interest methods.
|
|
What is the balance in the overhead account at the end
: Prepare a journal entry showing the completion of the Williams and Chandler projects and the transfer of costs to the Completed Projects account.
|
|
Find an upper bound for the percentage of families
: Suppose the average family income in an area is $10,000. Find an upper bound for the percentage of families with incomes over $50,000.
|
|
State government that mandates the use of benefit
: This comparison is being made for a state government that mandates the use of benefit/cost criteria at an interest rate of 8%. Which ratio
|
|
Calculate appropriate benefit-cost ratios
: Calculate appropriate benefit/cost ratios and recommend an alternative. Travel time is a disband fit. The alternatives are far (F), middle (M), and near (N).
|