User Account

All Pages

Prepare the journal entries to record the interest revenue

Assignment Help Accounting Basics
Reference no: EM132713444

Question - On January 1, 2020, Sarasota Company purchased 12% bonds, having a maturity value of $310,000 for $333,502.59. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Sarasota Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows.

2020 - $331,200

2021 - $319,100

2022 - $318,000

2023 - $320,200

2024 - $310,000

Required -

(a) Prepare the journal entry at the date of the bond purchase.

(b) Prepare the journal entries to record the interest revenue and recognition of fair value for 2020.

(c) Prepare the journal entry to record the recognition of fair value for 2021.

Reference no: EM132713444

Questions Cloud

Afforded many improvements in the healthcare industry : Technology has afforded many improvements in the healthcare industry, primarily in the access to data and information, also known as or data sharing.
Find how serious of threat anonymous pose to organizational : Find How serious of threat Anonymous pose to organizational? Would say that Anonymous' actions in support of WikiLeaks were legal? Were these actions ethical?
Workforce analytics is common approach to business : Workforce analytics is a common approach to business operations because it is based on the analysis of employee and staff data.
Explain details of the personalized plan of care : Explain details of the personalized plan of care that you would develop based on influencing factors and patient history in your case.
Prepare the journal entries to record the interest revenue : The bonds provide the bondholders with a 10% yield. Prepare the journal entries to record the interest revenue and recognition of fair value for 2020
Groups can utilize several options for making decisions : Groups can utilize several options for making decisions. Discuss the advantages and disadvantages of voting, consensus, and authority rule decision making.
Compute the fair value of the leased asset : Fitbit Ltd has leased a machine on the following terms: Date of entering lease 1 July 2019. Compute the Fair Value (rounded off) of the leased asset
Find three short examples of media with religion content : Find three short examples of media with political content. Find three short (maximum of 300 words) examples of media content of your choice
Describe the role of leadership in the movie : Describe the role of leadership in the movie. What types of leadership were used? In what ways does leadership help the group achieve their goals?

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