Reference no: EM13824141
1. P & P Products issued $1,800,000 of face value bonds on April 1, 2012. The bonds were sold for $1,908,000. They pay 8% interest each year on December 31st and come due in 10 years from their date of January 1, 2012. The company uses the effective interest methos to amortize any premium or discounts. The market rate is 6%.
Required: Prepare a bond amortization schedule showing the interest expense, interest payable/cash, and amount of amortization and carrying value of the bond for the first two years. Prepare entries for the issuance of the bonds and payment of interest for 2012 and 2013. ( You can disregard years 3-10)
2. On January 1, 2012, P & P Products purchased $1,000,000 of the five year, 8% bonds Delta Products in the open market for $960,00. Delta Products is a wholly-owned subsidiary of P & P Products. THe bonds are dated and were issued by Delta Products on January 1, 2010. The bonds pay interest every January 1st and July 1st. The effective interest method is used for amortization purposes. The market rate is 10%.
Required: Make any necessary entries on Delta Products books.
|
Ece careers and dispositions
: ECE Careers and Dispositions
|
|
Completion-completed contract method-completed-construction
: On January 2010, P & P Products began construction on a storage facility for Alpha Company. he President of P& P Products has consulted with the controller regarding estimated cost and the resulting profit. Prepare a schedule showing how much profit ..
|
|
Identify an important rule of thumb
: Identify an important rule of thumb from your organization that is used to make quick decisions.
|
|
Overarching concept and style of the artists work
: Overarching concept and style of the artist's work
|
|
Prepare bond amortization schedule showing interest expense
: P & P Products issued $1,800,000 of face value bonds on April 1, 2012. The bonds were sold for $1,908,000. They pay 8% interest each year on December 31st and come due in 10 years from their date of January 1, 2012. Prepare a bond amortization schedu..
|
|
Experiencing losses as hobby losses or on a schedule
: One of your clients owns a farm that has been experiencing losses. Should your client claim the losses as hobby losses or on a Schedule F? Justify your answer.
|
|
Conflicts of renewable energy
: Conflicts of Renewable Energy
|
|
Amount of tax liability for qualifying widow-social security
: What is the amount of the tax liability for a qualifying widow(er) with a dependent child and having taxable income of $121,600? Caroline, who files as head of household, received $9,000 of social security benefits. Her AGI before the social security..
|
|
Determine the total value that has to be paid back
: Jane buys furniture at the value of R10000. She lends the money on the 1st of February at a financial institute. Determine the total value that has to be paid back on 1July 2015 and How many months will it take Jane to pay the loan back.
|