User Account

All Pages

Prepare the journal entries to record sold the bonds

Assignment Help Accounting Basics
Reference no: EM132517404

Question - On January 1, 2016, Knorr Corporation issued $1,400,000 of 7%, 5-year bonds dated January 1, 2016. The bonds pay interest annually on December 31. The bonds were issued to yield 8%. Bond issue costs associated with the bonds totaled $21,540.76.

Required - Prepare the journal entries to record the following:

January 1, 2016 Sold the bonds at an effective rate of 8%.

December 31, 2016 First interest payment using the effective interest method.

December 31, 2016 Amortization of bond issue costs using the straight-line method.

December 31, 2017 Second interest payment using the effective interest method.

December 31, 2017 Amortization of bond issue costs using the straight-line method.

Reference no: EM132517404

Questions Cloud

Prepare monthly cash budgets for january and february : Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign.)
What are the net operating cash flows in years : The Campbell Company is considering adding a robotic paint sprayer to its production line. What are the net operating cash flows in Years 1, 2, and 3
What is the NPV of the electric scooter project : What is the NPV of the electric scooter project? (A negative amount should be indicated by a minus sign. Do not round intermediate calculations)
You think some people resist the idea of working in teams : Why do you think some people resist the idea of working in teams ( in IT industry) and how would you deal with their resistance?
Prepare the journal entries to record sold the bonds : Prepare the journal entries to record the January 1, 2016 Sold the bonds at an effective rate of 8% and December 31, 2016 First interest payment
Setting information to online pharmacies : You have been assigned to investigate whether or not employee at local hospital has been accessing patient records and setting information to online pharmacies
Compute both basic and diluted earnings per share : The current conversion ratio is 14:1, and in 2 years it will increase to 17:1. Compute both basic and diluted earnings per share
Did laarner earn a return on the shares : Compute the net present value. (Hint: Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediate calculations)
Hangman game : Hangman game. User will be able to select the category to play with .At least 5 categories in each should be presented in the game

Reviews

Write a Review

Accounting Basics Questions & Answers

  What would be the depreciation for the first year

Apple Company bought a car with an estimated life of five years for $12,000. If the car was bought on April 3, what would be the depreciation for first year

  Marjlee company began construction of an office building

Calculate the amount of interest capitalized in 2016 for the building using the specific interest method.

  Prepare a new cost analysis assuming the new price

Can you do it for the reduced price and still make a profit? Prepare a new cost analysis assuming the new price (Tab 2). Remember to address fixed.

  From the second e-activity determine the us security and

from the second e-activity determine the u.s. security and exchange commissions secs position on convergence. based on

  Pascal inc is planning to sell 800000 units for 150 per

pascal inc. is planning to sell 800000 units for 1.50 per unit. the contribution margin ratio is 20. if pascal will

  How much interest revenue will middleton corp report

On February 1, 2018, Middleton Corp. lends cash and accepts a $2,100 note receivable that offers 10% interest and is due in six months

  Chic jewelers views each branch location as an investment

chic jewelers views each branch location as an investment center. the local branch reported the following results for

  Prepare the general journal entry to replenish the fund

Briefly describe when the petty cash fund should be replenished. Prepare the general journal entry to replenish the fund

  Determine the amount that d net income for tax purposes

The interest was accrued and paid in the following year. Determine the amount that D's net income for tax purposes will decrease in the current year

  Refinancing payment

Blocker, Inc. had $10,000 of notes coming due on January 10, 2011- how much of the $10,000 note should be shown as current?

  What is the journal entry to record material purchases

Brooks Company reports its material price variances at the time of purchase. What is the journal entry to record material purchases

  Implementation of the company strategic plans

FASB Codification System provides the accountant with a vast array of information related to accounting issues. Assume that you are responsible for providing.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd