Solution-Prepare the entry to record the interest expense

Prepare the entry to record the interest expense at october

Reference no: EM131929407

Question - Conversion of Bonds

Schuss Inc. issued $3,000,000 of 10%, 10-year convertible bonds on June 1, 2010, at 98 plus accrued interest. The bonds were dated April 1, 2010, with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis.

On April 1, 2011, $1,000,000 of these bonds were converted into 30,000 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion.

Instructions

a. Prepare the entry to record the interest expense at October 1, 2010. Assume that accrued interest payable was credited when the bonds were issued.

b. Prepare the entry(ies) to record the conversion on April 1, 2011. (The book value method is used.) Assume that the entry to record amortization of the bond discount and interest payment.

Reference no: EM131929407

Questions Cloud

Estimate the mean number of books : How many subjects are needed to estimate the mean number of books read the previous year within four four books with 90?% ?confidence?

Prepare journal entries to record bond-related transactions : June 1, 2005, Jefferson Controls, Inc. issued $12,000,000 of 10 percent bonds to yield 12 percent. Prepare journal entries to record bond-related transactions

How many children have you ever had : How many children have you ever had? Please count all that were born alive at any time (including any you had from a previous marriage).

Briefly describe the three major theories of sociology : Based on your readings and knowledge of sociology, briefly describe the three major theories of sociology: Structural-Functionalism, Conflict Theory.

Prepare the entry to record the interest expense at october : Prepare the entry to record the interest expense at October 1, 2010. Assume that accrued interest payable was credited when the bonds were issued

Which theory do you feel has an impact : Which theory (Ownership and Stakeholder) do you feel has more of an impact on the business environment? Provide an example from current events.

Write a book report critiquing alinskys ideas on community : Are his rules developed in the 1970s still relevant in the twenty-first century? Why or Why not?

Should internal controls be updated or changed : Class- Should internal controls be updated or changed? If so, how often? Please post 200 words with references.

Evaluate mcdonald using five forces industry-analysis tool : Evaluate McDonald's using the five forces industry-analysis tool. Which force appears strongest? Weakest? How could McDonald's management use this analysis

User Account

All Pages

Prepare the entry to record the interest expense at october

Reference no: EM131929407

Reference no: EM131929407

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT