User Account

All Pages

Prepare JEs to record the issue on Jan

Assignment Help Financial Accounting
Reference no: EM132866997

Question - On January 1, 2021, Daniel Corp. issued $500,000 of 10-year, 8% bonds for $385,298, yielding a market (discount, yield) rate of 12% per year. Interest is paid semi-annually on June 30 and December 31. Daniel uses the effective interest rate method to account for bonds.

Required -

a. Prepare JEs to record the issue on Jan. 1, 2021. Include the Discount on B/P

b. What interest expense is reported on I/S for year ending December 31,2021?

c. On December 31, 2029, after paying the December 31 interest (Coupon), Daniel Corp retires the bonds for $486,153. Determine the gain/loss on bonds retirement and prepare journal entries to record the retirement. Include the unamortized bond discount.

d. Ignore (b) and suppose that on December 31, 2029 the yield decreases from 12% to 10% per year. What is the present value of the remaining cash flows of the bonds?

Reference no: EM132866997

Questions Cloud

Differences between leadership and management : Share a situation based on your own experience that clearly illustrates the differences between leadership and management.
What is good leadership : What is good leadership? Are we getting it? Is Trump using his daily briefings/press conferences as MAGA rallies? Watch some and write your opinions.
Potential quality concerns in traditional areas of machinery : Identify potential quality concerns in the traditional areas of machinery, employees, measurements, and materials.
What qualitative factors should be considered : The salmon currently sells for Rs.275 per pound but would sell for Rs.325 per pound if it were smoked. What qualitative factors should be considered
Prepare JEs to record the issue on Jan : On January 1, 2021, Daniel Corp. issued $500,000 of 10-year, 8% bonds for $385,298, Prepare JEs to record the issue on Jan
Explain about global warming conspiracy theory invokes claim : Explain about global warming conspiracy theory invokes claims that the scientific consensus on global warming is based on conspiracies
What is the company approach to using lean systems : What is the company's approach to using lean systems? What is the main function of the business?
How much is the gain on acquisition of treasury bonds : On July 1, 2020, the entity reacquired P3,000,000 face amount to be placed in the treasury at 103. How much is the gain on acquisition of treasury bonds
Explain the concept of fake news : Explain the concept of "fake news". The term "fake news" has been used by both sides of the political spectrum to try to minimize or marginalize news reports.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare the entry if the warrants were nondetachable

Prepare the entry if the warrants were nondetachable. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.

  Determine the margin of safety

What dollar amount of sales would be necessary to achieve a profit of $150,000? how many units would be necessary to achieve the $150,000 profit? using the $150,000 profit, calculate/determine the margin of safety.

  Show are these ratios positive

Are these ratios positive? Why or why not - Analysis of Financial Statements in terms of Ratios whether positive or negative

  Physical inventory

Net sales for the junior department in March were $128,480. Book inventory at the end of the month showed $427,831 should be on hand. Physical inventory showed $497,997. Determine shortage or overage percent.

  What is the company net income and what is its cash flow

Depreciation expense is $200,000. Moore is 100% equity financed and it faces a 40% tax rate. What is the company's net income? What is its Cash flow?

  What is the amount of the total cash outflow in year zero

What is the amount of the total cash outflow in year zero? What is the IRR of project rounded to two decimal places? What is operating cash flow for each year?

  How would dividend affect stockholders equity

How would this dividend affect stockholders' equity? A company declared a cash dividend on its common stock on December 15

  Journalize the acquisition of mauve stock on november

Journalize the acquisition of Mauve stock on November ?3, 2014. On January ?25, Davis sold the Mauve stock for $ 20.50 per share. Journalize the sale.

  What is the r-r of the regression

In a multiple regression analysis, MSE = 20, n = 54, k = 3, and SST(total) = 2,000. What is the R-R of the regression? Provide suitable example.

  Find what is balance in the equity investment account at dec

What is Equity Income for 2021? What is the amount of goodwill? What is the balance in the Equity Investment account at December 31, 2021?

  What maximum amount could marie withdraw each month

Find how much Marie must have at retirement. What maximum amount could Marie withdraw each month so that her balance never decreases (nearest dollar)?

  When does the cost of land affect an entity profit or loss

When does the cost of land affect an entity's profit or loss? When the related revaluation is recognized on a piecemeal basis as the asset is used

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