Prepare the journal entries

Assignment Help Accounting Basics
Reference no: EM132862957

Problem 1 - International Company issued a four year, 9%, P 500,000 bonds dated February 1 on February 1, 2022. These bonds yield rate was 10%. Interest is paid semiannually on July 31 and January 31. International Company financial year ends on December 31.

1. Prepare the amortization schedule.

2. Prepare the journal entries up to maturity.

3. Prepare the financial statements presentation each year up to maturity in terms of

a. Balance Sheet

b. Income Statement

c. Cash Flow

Problem 2 - National Corporation issued a 10-year, 8%, P 800,000 bonds that yield 10% on January 1, 2022. Interests are payable semiannually on June 30 and December 31. National elected to present the bonds at fair values. The changes in yield rates are due general interest rates. The yield rates at the end of 2022 and 2023 are 12% and 6%, respectively. Prepare the Journal entries in 2022 and 2023.

Reference no: EM132862957

Questions Cloud

What is the amount of Cub prepaid pension cost at December : Amortization of prior service cost was $24,000 for 2005. What is the amount of Cub's prepaid pension cost at December 31, 2005
What is the composite units to break-even : The products are being sold in a 3:2:1 ratio. The total fixed factory overhead amounts to P1,000,000. What is the composite units to break-even
Legal aspects and digital forensics : How digital forensics relies on legal aspects in order to become more efficient and unbiased?
Organization cloud computing implementation : Describe the organization's Cloud Computing implementation and the benefits they realized from the implementation.
Prepare the journal entries : The yield rates at the end of 2022 and 2023 are 12% and 6%, respectively. Prepare the Journal entries in 2022 and 2023
Prepare the journal entries to record each transaction : Received an invoice for $550 for telephone and internet charges for the month. Prepare the journal entries to record each transaction
What is the price of a share of stock : What is the price of a share of stock if the beta is? 1.5, its next dividend is projected to be $3.00?, and its growth rate is expected to be a constant 4%?
Remote access method evaluation : Discuss with your peers which of the two remote access solutions, virtual private networks (VPNs) or hypertext transport protocol secure (HTTPS)
Calculate the payback period for each project : Assume a $200,000 investment and the following cash flows for two alternative capital projects: Calculate the payback period for each project

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