Solution-Prepare journal entries to record the following

On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1.

Instructions

Prepare journal entries to record the following events.

(a) The issuance of the bonds.

(b) The payment of interest on July 1, assuming no previous accrual of interest.

Prepare the entry to record the payment of interest on july : Prepare the entry to record the payment of interest on July 1, 2010, assuming no previous accrual of interest on the remaining bonds.

Compute the total cost of borrowing for these bonds : Repeat the requirements from part (a), assuming the bonds were issued at 105.

Prepare the journal entry to record the issuance of the bond : Prepare the journal entry to record the conversion of the bonds into 30,000 shares of $10 par value common stock. Assume the bonds were issued at par.

Prepare the journal entries to record the following events : The redemption of bonds at maturity, assuming interest for the last interest period has been paid and recorded.

Prepare journal entries to record the following events : On January 1, Flory Company issued $300,000, 8%, 5-year bonds at face value. Interest is payable semiannually on July 1 and January 1.

Interest is payable semiannually on july 1 and january 1 : The payment of interest on July 1, assuming that interest was not accrued on June 30.

Determine the effect on net income and earnings per share : Issue 60,000 shares of common stock at $45 per share. (Cash dividends have not been paid nor is the payment of any contemplated).

Find quantity of each chocolate bar you should manufacture : Find the quantity of each chocolate bar you should manufacture to maximize your daily profit. Write the inequalities to describe each objective and constraint.

Secured bonds have specific assets of the issuer pledged : When seeking long-term financing, an advantage of issuing common stock over issuing bonds is that tax savings result.