User Account

All Pages

Prepare journal entries for issuance of the bonds

Assignment Help Accounting Basics
Reference no: EM132724310

Problem - Ramos Travel Co. issued the following bonds at a premium:

Date of issue and sale: April 1, 20-1

Principal amount: $600,000

Sale price of bonds: 104

Denomination of bonds: $1,000

Life of bonds: 20 years

Stated rate: 9%, payable semiannually on September 30 and March 31

Required - Prepare journal entries for:

(a) Issuance of the bonds at a premium.

(b) Interest payment and premium amortization on the bonds on September 30.

(c) Year-end adjustment on the bonds.

Reference no: EM132724310

Questions Cloud

Make the journal entries to record the redemption : Brighton Unlimited sold bonds at a premium for $630,000 (premium of $30,000) eight years ago. Make the journal entries to record the redemption
Find the total market value of firm : The current stock price for a company is $40 per share, and there are 8 million shares outstanding. This firm also has 290,000 bonds outstanding
Explain key points of disease theoretical model of addiction : Explain the key points of the disease theoretical model of addiction. Explain two strengths and two limitations of this theoretical model
What is the value per share of the company stock : Assuming the company continues its current growth rate, what is the value per share of the company's stock?
Prepare journal entries for issuance of the bonds : Stated rate: 9%, payable semiannually on September 30 and March 31. Prepare journal entries for Issuance of the bonds
Explain the client interpersonal systems : Describe the presented problem. Explain the identified problem. Explain the client's interpersonal systems and the impact on the client.
What is the government like : What is their relationship with other countries in the world? Who do they get along/not get along with? What has happened historically?
How many of the zeroes would you need to issue : Your company's tax rate is 30 percent. Assume a par value of $1,000. How many of the zeroes would you need to issue?
At what price will these bonds sell : Jibble Company wants to sell $300,000 of 8%, 10-year bonds. If the current market rate on similar investments is 9%, at what price will these bonds sell

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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