Prepare any adjusting entries necessary on june 30 in order

Reference no: EM13569020

1.On January 1, 2012, Oakbasket Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1.

Instructions: Prepare the journal entry for the issuance of the bonds:

(a)assuming the bonds are issued at 98.
(b)assuming the bonds are issued at 103.

2.Wicker Corporation purchased $400,000 of its bonds on June 30, 2012, at 102 and immediately retired them. The carrying value of the bonds on the retirement date was $359,000. The bonds pay semiannual interest and the interest payment due on June 30, 2012, has been made and recorded.

Instructions: Prepare the entry for the retirement of the bonds.

3.On March 1, the Levers Company borrows $90,000 from New National Bank by signing a 6-month, 8%, interest-bearing note.

Instructions: Prepare the necessary entries below associated with the note payable on the books of Levers Company.

(a)Prepare the entry on March 1 when the note was issued.
(b)Prepare any adjusting entries necessary on June 30 in order to prepare the semiannual financial statements. Assume no other interest accrual entries have been made.

(c)Prepare the entry to record payment of the note at maturity.

b.Mintz Company issued $300,000, 10%, 10-year bonds on January 1, 2012, at 105. Interest is payable annually. Mintz uses the straight-line method of amortization and has a calendar year end.

Instructions
Prepare all journal entries made in 2012 related to the bond issue.

Reference no: EM13569020

Questions Cloud

On your own paper prepare a graph for raw materials use the : smith concrete company owns enough ready-mix trucks to deliver up to 120000 cubic yards of concrete per year

What is the net present value of the costs of buying and : the ward county hospital center wchc wants to buy a new mobile primary care van to use in screening residents in an

Amanda and chris mcdermott own a small business plastic : amanda and chris mcdermott own a small business plastic dollars which produces and maintains stored value cards for

What type of analysis is indicated by the following : what type of analysis is indicated by the following?nbspamountpercentcurrent assets10000020property plant and

Prepare any adjusting entries necessary on june 30 in order : 1.on january 1 2012 oakbasket company issued bonds with a face value of 800000. the bonds carry a stated interest of 7

There were no other changes in the amount of stock : the net income after income tax of choi inc. was 15 per common share in the latest year and 60 per common share for

Variable costing versus absorption costing the mavis : variable costing versus absorption costing. the mavis company uses an absorption-costing sys- tem based on standard

Is it possible for the inventory turnover to be too high : a company that grants terms of n45 on all sales has a yearly accounts receivable turnover based on monthly averages of

Lamars discount rate is 12 if the discount rate and the : lamar company invested in an eqipment in a project with 8 years life and required 240000. at the end of the 8th year

User Account

All Pages