Solution-Prepare an amortization table through december

Prepare an amortization table through december

Assignment Help Financial Accounting

Reference no: EM132543296

On January 1, 2020, Cullumber Company issued $2,000,000 face value, 6%, 10-year bonds at $1,859,528. This price resulted in an effective-interest rate of 7% on the bonds. Cullumber uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on January 1.

Question a) Prepare the journal entry to record the issuance of the bonds on January 1, 2020.

Question b) Prepare an amortization table through December 31, 2022 (three interest periods) for this bond issue

Cullumber Company

Bond Discount Amortization

Effective-Interest Method-Annual Interest Payments

Annual Interest Periods

Interest to Be Paid

Interest Expense

to Be Recorded

Discount Amortization

Unamortized Discount

Bond Carrying Value

Issue date

Question c) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2020.

Question d) Prepare the journal entry to record the payment of interest on January 1, 2021.

Question e) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2021.

Reference no: EM132543296

Questions Cloud

Molar enthalpy of crystallization for sodium : Instant hot packs work by crystallizing sodium acetate (NaCH3COO). The molar enthalpy of crystallization for sodium acetate is -56.7 kJ/mol.

How the return on equity as leverage increase : If the rate of return earned before the payment of interest and taxes is greater than the interest on debt, then the return on equity______ as leverage increase

Find the equilibrium concentrations : In the synthesis of hydrogen fluoride from hydrogen and fluorine 4.000 mol H2 and 6.000 mol F2 are mixed in a 3.000 L flask. Assume that the equilibrium

Zinc half-cell with a copper half-cell : Consider the cell obtained by connecting a zinc half-cell with a copper half-cell. The standard reduction potentials are - 0.760 and + 0.340 volts respectively.

Prepare an amortization table through december : Prepare an amortization table through December 31, 2022 (three interest periods) for this bond issue.Prepare the journal entry to record the issuance of bonds

Determine break-even purchase price in term of present value : Determine the break-even purchase price in terms of present value of the harvester. This break-even purchase price is the price at which the project's NPV

How the goal of fundamental analysts is to find securities : How The goal of fundamental analysts is to find securities?With a positive present value of growth opportunities/where intrinsic value is different from market

What an investor would try to increase return from portfolio : According to the arbitage pricing theory, What an investor would try to increase return from his portfolio?by increasing the portfolio funds

Find inter week price band controls the : nter Day price band fixes the price range for a scrip for a trading session. Find Inter week price band controls the?Half yearly price movement

User Account

All Pages

Prepare an amortization table through december

Reference no: EM132543296

Reference no: EM132543296

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT