Prepare the journal entries to record the purchase of bonds

Assignment Help Accounting Basics
Reference no: EM132477291

Point 1: Complete the following questions. In addition to answering the items below, need an analysis of the assignment. Analyze the specific outcomes and need an analysis directed toward the team at BAJA Corporation describing what the numbers mean and how they relate to the business.

Point 2: On January 1, 2017, BAJA Corporation purchased bonds with a face value of $600,000 for $616,747.06 The bonds are due June 30, 2020, carry a 13% stated interest rate, and were purchased to yield 12%. Interest is payable semiannually on June 30 and December 31. On March 31, 2018, in contemplation of a major acquisition, the company sold one-half the bonds for $319,000 including accrued interest; the remainder were held until maturity.

Question 1: prepare the investment interest income and bond premium amortization schedule using the effective interest method.

Question 2:  prepare the journal entries to record the purchase of the bonds.

Question 3: prepare the journal entries to record each interest payment.

Question 4: prepare the journal entries to record the partial sale of the investment on March 31, 2018, and the retirement of the bond issue on June 30, 2020.

Reference no: EM132477291

Questions Cloud

Prepare Buffalo November entry : Prepare Buffalo's November 1, 2017, entry; the December 31, 2017, annual adjusting entry; and the February 1, 2018, entry
What is total amount of the apparel department direct cost : What is the total amount of the Apparel Department's direct costs that are also variable costs with respect to total departmental sales
What is the amount of the tax on a case of beer : What The amount of the tax on a case of beer is $____ per case. Of this amount, the burden that falls on consumers is $___ per case, and the burden
How experience has helped you in your educational journey : For this assignment, contact an athletic director, recreation manager, YMCA director, or someone who runs an athletic department. If that person is local.
Prepare the journal entries to record the purchase of bonds : Prepare the journal entries to record the partial sale of the investment on March 31, 2018, and the retirement of the bond issue on June 30, 2020.
Record the employer cash payment of the net payroll : Complete payroll register by filling in all cells for the pay period ended August 31. Record the employer's cash payment of the net payroll of part b
Who does the target audience seem to be : Post a brief description of the ad/campaign/commercial/etc. and a description of its message. Please provide an Internet link to the message itself.
What is the difference in accounts used in product cost : What is the difference between a service business and a merchandising business? What is the difference in accounts used in product cost
Production of an appropriate query sheet : Dimension paper in accordance with NRM2 for the internal finishes/decoration (floor, wall, ceiling and skirting) and masonry

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