Reference no: EM132578358
Question -
Part 1 - On January 2, 2012, Bengro Corporation issued $4,500,000 of 10% bonds at 96 due December 31, 2021.
Interest on the bonds is payable annually each December 31. The discount on the bonds is also being amortized on a straight-line basis over the 10 years. (Straight-line is not materially different in effect from the preferable "effective interest method.") The bonds are callable at 102 (i.e., at 102% of face amount), and on January 2, 2018, Bengro called all of the bonds and redeemed them.
Required - Prepare Bengro's journal entry to record the early extinguishment of the bonds payable. Show all work.
Part 2 - Groover Industries issued a 4-year, $90,000, zero-interest-bearing note to McCrery Motors on January 1, 2017 in exchange for a delivery truck. Groover's incremental borrowing rate of interest is 10%. McCrery's incremental borrowing rate of interest is 8%. Prepare Groover's journal entries for (a) the January 1 issuance of the note and (b) the December 31 recognition of interest.
|
Determine the price of aapl common stock
: Determine the price of AAPL's common stock. Analysts believe that the growth rate for AAPL will be 25% per year for the next three years
|
|
Prepare all journal entries necessary for Suffolk Industries
: In 2017, Suffolk Industries incurred actual warranty costs relative to the tractor of $1,300, Prepare all journal entries necessary for Suffolk Industries
|
|
Determine the current yield and the yield-to-maturity
: Assume that the bonds are selling for $1,150.00. Determine the current yield and the yield-to-maturity. Explain what these terms mean.
|
|
Explain the relationship of ethics to the difference
: Explain the relationship of ethics to the difference between purchasing life insurance on yourself versus someone else.
|
|
Prepare Bengro journal entry to record early extinguishment
: On January 2, 2012, Bengro Corporation issued $4,500,000 of 10% bonds, Prepare Bengro journal entry to record early extinguishment
|
|
What is the original regular selling price
: What is the original regular selling price? Autobots purchases car stereos for $225 less 331/3%. The store operates at a normal markup of 35%
|
|
Effective ethics program
: Discuss the components of an "effective ethics program" and the reasons for having a code of ethics.
|
|
Discuss the role of one personal values in business
: Discuss the role of one's personal values in business decision making situations in detail.
|
|
What will you solve it if you are a partnership manager
: Total losses are more than $20,000 and keep growing. What will you solve it if you are a Partnership Manager?
|