User Account

All Pages

Prepare all of relevant journal entries from time of sale

Assignment Help Accounting Basics
Reference no: EM132827577

In each of the following independent cases the company closes its books on December 31.

  1. Lime Co. sells $600,000 of 9% bonds on April 1, 2017. The bonds pay interest on October 1 and April 1. The due date of the bonds is October 1, 2021. The bonds yield 8%. Give entries through December 31, 2018.
  2. Lemon Co. sells $1,000,000 of 10% bonds on August 1, 2017. The bonds pay interest on February 1 and August 1. The due date of the bonds is August 1, 2020. The bonds yield 12%. On October 1, 2018, Lemon Co. buys back $200,000 worth of bonds for $218,000 (includes accrued interest). Give entries through February 1, 2019.

Instructions

Problem 1: For the two cases prepare all of the relevant journal entries from the time of sale until the date indicated. Use the effective interest method for discount and premium amortization (construct amortization tables where applicable). Amortize premium or discount on interest dates and at year-end.

Reference no: EM132827577

Questions Cloud

How data would be collected and analyzed using approach : Present a 2-3-paragraph rationale that describes the purpose of the research. Describe in 2-3 paragraphs how data would be collected and analyzed using this.
How much money will be in the account : You plan to buy a house in 9 years. You want to save money for a down payment on the new house. How much money will be in account after you made last payment
What is the risk rating : What is the risk rating? Is the control effective? How did you determine this? If it is not effective what would you do? Is your control preventative or detecti
Job market-job descriptions and what employers want : Before you begin this discussion, review the presentation: Today's Job Market: Job Descriptions and What Employers Want..
Prepare all of relevant journal entries from time of sale : Prepare all of the relevant journal entries from the time of sale until the date indicated. Use the effective interest method for discount
Record the transactions : On September 15, the company reacquired and cancelled 9 shares (3 from each of Jack, Joe, and Jamal). Record the transactions
Describe the values and beliefs that influence you : Describe the values and beliefs that influence you as an advanced human services professional practitioner concerned with leading change efforts to benefit.
Economically viable to implement and maintain policies : Healthcare organizations must be economically viable to implement and maintain policies.
Describe the current unemployment rate for state : Describe the current unemployment rate for your state (if outside the U.S., you can choose a U.S. state or use data from your country of residence).

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