Prepare the bond amortization table through December

Assignment Help Accounting Basics
Reference no: EM132637726

Question - On January 1, 2020, Fields Corporation issued ten-year bonds with a par value of $2,000,000. The bonds pay interest semiannually on June 30 and December 31 at an annual rate of 10%. The bonds were issued to yield 8% annually.

Fields Corporation has a fiscal year that ends August 31 each year. Fields Corporation uses the effective-interest method to calculate its interest expense each period.

Required -

1. Compute the issue price of the bonds and the journal entry at issuance.

2. Prepare the bond amortization table through December 31, 2020.

3. Prepare the journal entry or entries associated with this bond on August 31, 2020.

 

Reference no: EM132637726

Questions Cloud

What is the balance in the common stock account : Question - The following amounts are reported in the ledger of Mariah Company: What is the balance in the common stock account
Make a retained earnings statement in good form : The net income for the year was $285,000. Dividends of $225,000 were paid during the year. Make a retained earnings statement in good form
Leadership communication is important for all phases : Leadership communication is important for all phases of an IT project.
Censorship in film has played important role : Censorship in film has played an important role in commercial movie making.
Prepare the bond amortization table through December : Fields Corporation issued ten-year bonds with a par value of $2,000,000. Prepare the bond amortization table through December 31, 2020
What is total amount of cash paid for operating activities : Stimpleton Company engages in the following cash payments: Pay rent 650. What is the total amount of cash paid for operating activities
Neo-noir film-color play part in film : How does color play a part in the film you watched for this week? Identify at least three places that color stood out in the film.
Prepare a lease amortization schedule for Lester Company : Titles to the trailers pass to Lester at the end of the lease. Prepare a lease amortization schedule for Lester Company till 12/31/2021
The aesthetic and technical aspects of film : 1. Tell us why it is your favorite film. Talk about the interconnection between the aesthetic and the technical aspects of the film.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Maynor county officials have concluded that several legally

maynor county officials have concluded that several legally separate entities must be included as component units of

  Value of preparing a contribution income statement

Explain the value of preparing a contribution income statement. Describe the concept of sensitivity analysis and explain the value of applying it during any budgeting process.

  Estimate the company first quarter ending inventory

Wayman Company wants to prepare interim financial statements for the first quarter. The company wishes to avoid making a physical count of inventory.

  What is the opportunity cost of the rooms

Suppose the Marriott manager signs the contract. What is the opportunity cost of the 50 rooms on October 20, the night of a big convention of retailers.

  Calculate the total present value of cash flows

Interest is at 12%. Assume cash flows occur at the end of the year. Calculate the total present value of the cash flows.

  Determine equity method journal entries

An investor purchases a 30% interest in an investee company, and the investor concludes that it can exert significant influence over the investee.

  How much of the refund must Rachel include in gross income

Rachel claimed itemized deductions of $6,900 and this total included $2,800 of state income taxes. How much of the refund must Rachel include in gross income

  Explain what devon meant and give examples of transactions

Chris, Patty, and Devon, three accounting students, were discussing the rules of debits and credits. Chris says that debits increase account balances and credits decrease account balances. Patty says that Chris is wrong, that credits increase account..

  Prepare a schedule allocating general plant management costs

Prepare a schedule allocating general plant management costs and plant security costs to the Melting and Molding Departments

  What is the return on equity

Oscar's Dog House has a profit margin of 5.6 percent, a return on assets of 12.5 percent, and an equity multiplier of 1.49. What is the return on equity?

  What is the opportunity cost associated

Marginal tax rate is 32 percent, and your cost of capital is 12 percent, what is the opportunity cost associated with using the unused capacity

  Determine the cost of goods sold using the FIFO method

Causwell Company began 2021 with 23,000 units of inventory on hand. Determine the cost of goods sold for 2021 using the FIFO method

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