Prepare the journal entries to record accrual of interest

Assignment Help Accounting Basics
Reference no: EM131800713

Problem

Cole Corporation issued $401,000, 6%, 21-year bonds on January 1, 2014, for $320,667. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Cole uses the effective-interest method to amortize bond premium or discount.

Prepare the schedule using effective-interest method to amortize bond premium or discount of Cole Corporation. (Round answers to 0 decimal places, e.g. 150.)

Prepare the journal entries to record the issuance of the bonds. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Prepare the journal entries to record the accrual of interest and the discount amortization on December 31, 2014.(Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Reference no: EM131800713

Questions Cloud

Mandatory health insurance plan costs : A mandatory health insurance plan costs $4,000. One worker earns $24,500 in employment income and $500 in investment income.
A church pastor was found guilty of payroll tax fraud : a church pastor was found guilty of payroll tax fraud by withholding employee payroll taxes and failing to remit
Lummins engine corporation : At Lummins Engine Corporation, production employees work 10 hours per day, four days per week. Each day of the week
Are you at all familiar with any other analytical software : Are you at all familiar with any other analytical software packages that can be used to study market research? If so, how does Q compare?
Prepare the journal entries to record accrual of interest : Cole Corporation issued $401,000, 6%, 21-year. Prepare the journal entries to record the accrual of interest and the discount amortization on December 31, 2014.
What are the advantages and disadvantages of doing this : Why is it so important that companies avoid putting excessive detail in the retained earnings account, Why create another account just to track this detail
Prepare the journal entries to record payment of interest : Prepare the journal entries to record the payment of interest on January. Prepare the journal entries to record the accrual of interest on December 31, 2014.
Which do you think would be easiest to identify : Of the potential causes for error described above, which do you think would be easiest to identify? Hardest? Explain your reasoning.
Explain the measurement validity and interview validation : What is the difference between measurement validity and interview validation?

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