Solution-Prepare the journal entry at the date of issue

Prepare the journal entry at the date of issue

Assignment Help Accounting Basics

Reference no: EM132922342

Question - On January 1 , 2020 , Osborn Inc. sold 12 % bonds having a maturity of $ 800,000 that provides the bondholders with a 10 % yield . The bonds are dated January 1, 2020 and mature on January 1, 2025 with interest payable semi - annually on January 1 and July 1 of each year. The company follows IFRS and uses the effective interest method. Round calculations to the nearest dollar.

Required -

1) Prepare the journal entry at the date of issue.

2) Prepare a schedule of interest expense and bond amortization for 2020 through 2023.

3) Prepare the journal entries to record the interest payment and the amortization for 2020.

4) Prepare the journal entries to record the interest payment and amortization for 2022.

5. Assume that all the issued bonds are repurchased on July 1st, 2022 for $ 837,000. Prepare the journal entry to record this transaction.

If Osborn prepares financial statements in accordance with ASPE, can Osborn choose a different method of amortizing any premium or discount on its bonds payable? Explain your answer.

Reference no: EM132922342

Questions Cloud

What attitudes does culture have toward sleep : What attitudes does your culture have toward sleep? Biologically, humans are "preprogrammed" to have one major sleep cycle at night.

What is ayenew after-tax cost of debt : Ayenew Company's financing plans for next year include the sale of long-term bonds with a 10% coupon. What is Ayenew after-tax cost of debt

What are the challenges are likely to face : Suppose your job requires you to work shifts, What are the challenges you are likely to face and what might make switching to a different shift easier?

Georgianization of everyday life in early america : How do matched place settings reflect the "georgianization" of everyday life in early America?

Prepare the journal entry at the date of issue : The company follows IFRS and uses the effective interest method. Round calculations to the nearest dollar. Prepare the journal entry at the date of issue

What might make switching to a different shift easier : What are the challenges you are likely to face and what might make switching to a different shift easier? Suppose your job requires you to work shifts

Naviswork timeline scheduling tool : White an essay on Naviswork timeline scheduling tool. Please describe how it is different than P6, its advantages, and disadvantages.

How could use humanistic theories and concepts : How you could use humanistic theories and concepts to explain Katherine's personality development and behavior. Be specific in the concepts

Employment-at will : Should the law allow an employer to fire an employee without a good reason?

User Account

All Pages

Prepare the journal entry at the date of issue

Reference no: EM132922342

Reference no: EM132922342

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT