Prepare all necessary journal entries to record issuance

Assignment Help Financial Accounting
Reference no: EM132826492

Problem - ML Corporation sold $24,000,000, 3%, 10-year bonds on January 1, 2020. The bonds apply interest on July 1 and January 1. Mc Lain uses the straight-line method to amortize bond premium or discount. Assume no interest accrued on June 30.

Required -

Prepare all the necessary journal entries to record the issuance of the bonds and bond interest happens for 2020, assuming that the bonds sold at 105.

Prepare journal entries as in part (1) assuming that the bond sold at 98.

Show statement of financial position presentation for each bond issued at December 31, 2020.

Reference no: EM132826492

Questions Cloud

By how much do the firm market values per share differ : Bauer Software's current balance sheet shows total common equity of $5,125,000. By how much do the firm market values per share differ
Create a theory of action to sustain school transformation : Create a theory of action to sustain school transformation. Predict two (2) problems that may develop based on your theory of action. Propose two (2) solutions.
What amount of gain on sale of share rights should : Assuming the entire share rights were sold at prevailing market price of P5.00, what amount of gain on sale of share rights should Kier Corporation recognize
How you might use content to support the language needs : In an SEI classroom, the language objective drives the instruction. Content can be used to support the development of language, but is not the focus for.
Prepare all necessary journal entries to record issuance : Prepare all the necessary journal entries to record the issuance of the bonds and bond interest happens for 2020, assuming that the bonds sold at 105
What the cash provided by investing activities for calendar : What the cash provided by investing activities for calendar 2020 is? Selected information from Regan Ltd.'s 2020 accounting records
How will your findings inform future professional practice : From the research, write a 250-500 word description of that reading/literacy assessment, the purpose of the assessment, the specific characteristics.
Make all the necessary journal entries in the books of grey : Make all the necessary journal entries in the books of Grey's Corporation. Grey's Corporation received subscription for 500 shares of $20 par value preference
Plot a graph of the total interest paid as a function : Plot a graph of the total interest paid as a function of the number of years for which the loan taken out. Use a range from 15 to 30 years

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepaid insurance expense account at year-end

What is the effect on the financial statements when a company fails to adjust the prepaid insurance expense account at year-end for insurance coverage that has been used?

  What is the depreciation tax shield for project in year

What is the depreciation tax shield for this project in year 7? Your firm needs a machine which costs $130,000, and requires $34,000.

  Calculate the CGU recoverable amount and carrying amount

Calculate the CGU's recoverable amount and carrying amount. Also calculate the amount of any impairment loss. Solve this Question.

  Solve and allocate impairment loss to individual asset

Carrying amount ($million), Calculate and allocate the impairment loss to individual assets and suggest journal entries for Advanced Institute Limited.

  Provide the procedures used to analyze a company

Provide the procedures used to analyze a company's financial statements to determine its future prospects. Provide a sample list of metrics or ratios

  Prepare adjusting entries needed for the accrual of interest

For ease of computation assume that Inc. calculates interest expense based on the number of months, outstanding, rather than the number of days.

  Explain why did fasb change the rules

Business combinations historically have been accounted for as either a purchase or a pooling of interests. Now, with SFAS 141(R), the acquisition method is required. Explain why did FASB change the rules? Did VIEs have a role in that decision?

  Give the journal entries needed to record the corrections

Give the journal entries needed to record the corrections - Extra capital of £ 10,000 paid into the bank had been credited to Sales account.

  Calculate the revenues

Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

  What is the backing ratio

Show how this affects the central bank balance sheet. Does this change Money supply ? Explain why or Why not, what is the baking ratio now ?

  Record issuance of the bonds on January

Record (a) issuance of the bonds on January 31, (b) the semi-annual interest payment and discount amortization on July 31

  Uses the perpetual inventory system-amount of gross margin

Barton Company uses the perpetual inventory system. The company purchased $13,000 of merchandise from Banks Company under the terms 2/10, net/30. Barton paid for the merchandise within 10 days and also paid $895 freight to obtain the goods under term..

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