User Account

All Pages

Prepare journal entries to record the redemption of the old

Assignment Help Accounting Basics
Reference no: EM131746145

On June 30,2009 County Company issued 12% bonds with a par value of $800,000 due in 20 years. They were issued at 98 and were callable at 104 at any due date after June 30th 2017. Because of lower interest rate and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2018 and to issue new bonds. new 10% bonds were sold in the amount of $1,000,000 at 102; they mature in 20 years. County Company uses straight-line amortization. Interest payment dates are December 31 and June 30.

Instructions;

a) Prepare journal entries to record the redemption of the old issue and the sale of the new issue on June 30,2018

b) Prepare the entry required on December 31,2018 to record the payment of the first 6 month's interest and the amortization of the premium on the bonds.

Reference no: EM131746145

Questions Cloud

Compute what quantity of labor to demand : Analyze how your chosen organization determines what quantity of labor to demand and what events could shift the demand and supply of that labor.
Run the regression and summarize the results : Run the regression and summarize the results. Write the statistical model for this analysis. Include all assumptions
Attributes that contribute to failed state include : Attributes that contribute to a failed state include. An intelligence activity to keep track of activities in foreign countries is referred as __________.
What to employees in performance appraisal describe : Supervisors need to provide what to employees in a performance appraisal describe
Prepare journal entries to record the redemption of the old : Prepare journal entries to record the redemption of the old issue and the sale of the new issue
Gangsta rap is modern-day minstrel show : Gangsta rap was—and remains—controversial. One of the more striking criticisms about gangsta rap was that gangsta rap is a “modern-day minstrel show.”
Where do the two intersect and how : How can they be separate from one another? Why is an understanding of both the intersections and differences important in studying ethics?
What is his deduction for qualified residential interest : the mortgage and paid interest only of $6,600 on the home equity loan. What is his deduction for qualified residential interest for 2016
What is the numerical value : The multiple regression model assumes that the ?'s are Normal with mean zero and standard deviation s. What is the numerical value of s

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