User Account

All Pages

Prepare the journal entries to record the redemption

Assignment Help Accounting Basics
Reference no: EM133019147

Question - SHU Inc. issued a 4-year bond with face value of $400,000 on 1 April, 2010. The annual coupon rate is 10% p.a. Interests are paid semi-annually on 31 March and 30 September. The effective annual interest rate is 12% p.a. Round your calculation to the nearest dollar.

1. Prepare the journal entries on 1 April, 2010 to record the issuance of the bond.

2. Prepare the journal entries on 30 September, 2010 to record the first interest payment.

3. Prepare the journal entries on 31 December 2010, the fiscal year end of 2010.

4. Prepare the journal entries on 31 March 2011 to record the second interest payment.

5. On 31 March 2011, after the second interest payment, SHU. Co. redeemed half of the bond at $220,000. Prepare the journal entries to record the redemption.

Reference no: EM133019147

Questions Cloud

What is the minimum price : Using the general guideline presented in the chapter, what is the minimum price at which the Airbag Division would sell airbags to the Vivo Division
Determine the new expenses account : As the bookkeeper of a new start-up company, you are responsible for keeping the chart of accounts up to date. At the end of each year, you analyze the accounts
Licensing helps avoid patent infringement : As a strategy for reaching global markets, licensing provides the licensor Multiple Choice with several advantages. One advantage is
How much is the cumulative balance : SUKONA Company provided you the following information: Security - AKO Co. shares No. of shares - 100,000 shares. How much is the cumulative balance
Prepare the journal entries to record the redemption : On 31 March 2011, after the second interest payment, SHU. Co. redeemed half of the bond at $220,000. Prepare the journal entries to record the redemption
What is qualitative data : What is Qualitative data and how can it be beneficial towards our lives?
Calculate the dollar amount of ira distribution : The distribution is subject to a 25 percent tax. Calculate the dollar amount of IRA distribution the investor is left with after paying taxes
What are the equivalent units for the materials : Work in process, July 1 (60% converted), 60,000 units. Using the weighted average method, what are the equivalent units for the materials
What is the measure of each stock contribution to risk : Both companies have 10% return & 45% volatility and are perfectly negatively correlated. What is the measure of each stock contribution to risk

Reviews

Write a Review

Accounting Basics Questions & Answers

  AC114 Accounting Assignment Problem

AC114 Accounting Assignment Help and Solution - Purdue University, USA. Prepare the perpetual inventory schedule for the above transactions using FIFO

  What amount of FICA tax will Rasheed pay for the year

Assuming he is single and has no other sources of income, what amount of FICA tax will Rasheed pay for the year

  Prepare a traditional income statement

All 200,000 units produced during year 1 are sold during year 1. Prepare a traditional income statement assuming the company uses absorption costing

  What is net income using variable costing

Star Services, Inc., a manufacturer of telescopes, began operations on October 1 of the current year. During this time, the company produced 50,000 units and sold 35,000 units at a sales price of $500 per unit. Cost information for this year is sh..

  Determine the maximum amount per unit furman industries pay

Furman Industries uses 4,000 components per year. Determine the maximum amount per unit Furman Industries could pay an outside supplier

  Describe the steps of decision-making process

Five-step decision-making process, manufacturing. Garnicki Foods makes frozen dinners that it sells through grocery stores.

  What type of internal control of bikes inc prevent an error

Cars Inc. continues to be one of the best customers of Bikes Inc. What type of internal control of Bikes Inc. would prevent an error like this in the future

  Which statements is true for a multi-step income statement

Which statements is true for a multi-step income statement? Has subtotals for gross profit and operating income./ Shows a higher net income

  What is tax liability

Chandler is single and reports taxable income of $133,600. What is Tax liability: What is Marginal rate: and What is Average rate

  Prepare the journal entry to record the acquisition

An appraisal showed that the fair market value of inventory was $300,000 and that the fair market value of the plant assets was $1,250,000. The fair market value of the receivables is equal to book value. The agreed purchase price was $2,200,000 m..

  Calculate his EI Premium per pay period

Frank Lasalle works 75 hours in the bi-weekly pay period and earns $30.00 an hour. Calculate his EI Premium per pay period

  Calculate the residual income for the jefferson division

Calculate the residual income for the Jefferson Division, Calculate the residual income for the Adams Division

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