Prepare journal entry necessary on the books of Sundown

Assignment Help Accounting Basics
Reference no: EM132844572

Problem - Sundown Company has bonds payable with face amount of P5,000,000 and a carrying amount of P5, 150,000. In addition, unpaid interest on the bonds has been accrued in the amount of P300,000.

The creditor has agreed to the settlement of the bonds payable in exchange for land with fair value of P4,500,000. The land has a historical cost of P3,200,000.

Required - Prepare journal entry necessary on the books of Sundown Company to record the settlement of the bonds payable.

Reference no: EM132844572

Questions Cloud

What is the standard deviation of the return on asset : The returns of two assets under four possible states of nature are given below: What is the standard deviation of the return on asset
Did a larger percentage of students experience acts : Did a larger percentage of students experience acts of violence compared to those who experienced theft? Explain your answer. Be sure to provide specific descri
Plug the correct numbers in the formula : In 2013 the number of cars sold by all the Chevrolet dealers in the United States closely approximated a normal distribution with a mean of 4,500 and a standard
Describe the process of collecting evidence of explosives : Describe the process of collecting evidence of explosives? What is the difference between screening and confirmatory tests? Why are both needed?
Prepare journal entry necessary on the books of Sundown : Prepare journal entry necessary on the books of Sundown Company to record the settlement of the bonds payable
Calculate appropriate measures of dispersion : Construct a frequency distribution. Calculate appropriate measures of central tendency. Calculate appropriate measures of dispersion.
Describe the doctrine of sovereign immunity : Describe the doctrine of sovereign immunity. How do court protections shield correctional officers from liability for certain types of lawsuits?
What is the probability that he will stay within the circle : What is the probability that he will stay within the circle of radius 100 feet after one hour? Use the Central Limit Theorem to solve
Calculate the unit cost for each of the two products : For the current year, the firm budgeted $1,400,000 total factory overhead cost. Calculate the unit cost for each of the two products

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd