Reference no: EM132884850

Questions -

Q1. Pricing practices for each of the items discussed as follows:

A. Telecommunications and Car rentals

B. Airlines tickets for business & other classes

C. New product launch with massive production

Q2. A company issued $2,000,000 of 30-year, 8% callable bonds on April 1, 2011, with interest payable on April 1 and October 1. The fiscal year of the company is the calendar year. Journalize the entries to record the following selected transactions:

2011 Apr. 1 Issued the bonds for cash at their face amount Oct. 1Paid the interest on the bonds.

2013 Oct. 1 Called the bond issue at 103, the rate provided in the bond indenture. (Omit entry for payment of interest.)

Q3. Emerald, Inc. had outstanding $5,540,000 of 11% bonds (interest payable July 31 and January 31) due in 10 years. On July 1, it issued $8,870,000 of 10%, 15-year bonds (interest payable July 1 and January 1) at 99. A portion of the proceeds was used to call the 11% bonds (with unamortized discount of $55,400) at 101 on August 1. Prepare the journal entries necessary to record issue of the new bonds and the refunding of the bonds.