User Account

All Pages

Prepare the journal entries to record the first two interest

Assignment Help Accounting Basics
Reference no: EM13900940

Gomez issues $ 240,000 of 6%, 15  year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. They are issued at $ 198,494, and their market rate is 8% at the issue date. 

Required: 

1. Prepare the January 1, 2013, journal entry to record the bonds issuance. 

2. Determine the total bond interest expense to be recognized over the life of the bonds. 

3. Prepare a straight line amortization table like the one in Exhibit 14.7 for the bonds first two years. 

4. Prepare the journal entries to record the first two interest payments.

Reference no: EM13900940

Questions Cloud

Preservation ethic and the conservation ethic : Differentiate between the preservation ethic and the conservation ethic. With which ethic do you identify the most?preservation or conservation? Why?
E-commerce and integrated marketing strategies : What are the supply chain or demand chain elements essential to the operations and marketing of Amazon? Where are amazon warehouses located and why are they located there? How can the lessons learned from amazon be applied to other forms of e-commerc..
Who are the major competitors on the internet : what is the nature of the competition faced by amazon? who are the major competitors on the internet? who are the major competitors in traditional forms of retailing?
Conduct research into applications of pulse width modulation : Conduct research into applications of pulse width modulation (PWM).  Include proper APA citation for all sources referenced.
Prepare the journal entries to record the first two interest : Gomez issues $ 240,000 of 6%, 15  year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. They are issued at $ 198,494, and their market rate is 8% at the issue date.
Extinction or threatened biodiversity : Select one region of the world and identify at least two serious environmental problems, such as soil degradation, air or water pollution, pesticide misuse, overpopulation, wildlife extinction or threatened biodiversity, and deforestation, that im..
Determining the regulations on recycling : 1. What are some things you can do in your own home and daily lives that could be considered part of the three R's? 2. Does your state have regulations on recycling? How easy is it for you to recycle items at home, at work, or at school?
Prepare the journal entry to record the bonds retirement : Valdez issues $ 450,000 of 13%, four year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31.
Design a sampling process which would be appropriate for hrm : The HRM director of a manufacturing company wants to offer stress management seminars to personnel. Design a sampling process which would be appropriate for the HRM director to use.

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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