Prepare the journal entry for the amortization

Assignment Help Managerial Accounting
Reference no: EM133157964

Question - On January 1, Year 1, Twain Corporation sold $510,000 of its own 7 percent, 10-year bonds. Interest is payable annually on December 31. The bonds were sold to yield an effective interest rate of 8 percent. Twain uses the effective interest rate method. The bonds sold for $475,779.

Required -

a. Prepare the journal entry for the issuance of the bonds.

b. Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. (Assume effective interest amortization.)

c. Prepare the journal entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. (Assume straight-line amortization.)

d. Calculate the amount of interest expense for Year 2. (Assume effective interest amortization.)

e. Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.)

Reference no: EM133157964

Questions Cloud

Estimate the expected return on equity for the bank : Assuming that the market has priced this stock correctly, estimate the expected return on equity for the bank
Formalized and organized method of on-job training : Assume you have been assigned to develop and implement a formalized and organized method of on-job training in your organization.
Possible barriers to critical thinking processes : - List three possible barriers to critical thinking processes and explain each barrier.
Discuss at least three different data collection methods : Good Morning, Please answer the questions below in a detailed explanation using in-text citations and applicable references.
Prepare the journal entry for the amortization : Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1
Explain how influence a recruiter actions : Give three examples of how organizational policies affect the recruitment process. Explain how these influence a recruiter's actions.
Developing an emergency response plan : Naturally occurring emergencies include the following: floods (lakes and mountain streams), earthquakes, SARS, and wind bursts and heavy rains. COVID-19 has tak
What is the total amount of debenture bond : Baloc Company reported the following noncurrent liabilities on December 31, 2021; What is the total amount of debenture bond
Differences between proactive and reactive tna : What is the differences between proactive and reactive TNA. List and describe an example of each approach.

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Journalize the entry to record the sale

Journalize the entry to record the sale. If an amount box does not require an entry, leave it blank. Round your answers to the nearest cent.

  Write response of discussion based on managerial accounting

Managerial Accounting: Focuses on data for internal processes distributed within the company and used for planning and operation effectiveness.

  What is division return on investment and residual income

Determine What is the division's return on investment (ROI)? What is the division's residual income? Far Sight is a division of a major corporation.

  Find and list five type of management accounting information

Find and List 5 types of management accounting information that might assist K-mart management to make business decisions.

  What are main differences between monthly profit and loss

What are the main differences between the monthly Profit and Loss Account by function and the monthly Profit and Loss Account prepared

  Compute the standard direct labor-hours allowed for year

Assume that the company actually produces 18,000 units. Compute the standard direct labor-hours allowed for this year's production.

  How might the managers at toys world use the information

On 31st March,How might the managers at Toys World use this information? Calculate the cost per cuddly koala for job number A26.

  Define what is the meant for the organization

Define what is the meant for the organization. What would you change about the organization to make it better, without sacrificing ethical standards?

  Find the flexible budget will show total commissions of

The sales department budgeted sales of $150,000 for total commissions of $4,500. If actual sales totaled $170,000 flexible budget will show total commissions of

  How do identify two qualitative factors

How do Identify two qualitative factors that should be considered before accepting a special order. Should Koho accept the order?

  Calculate the times interest earned ratio

Sales are $1.44 million, cost of goods sold is $570,000, depreciation expense is $144,000, calculate the times interest earned ratio

  Determine the cost per unit of the leather case

Conversations with salespeople revealed that 70 finished sets were used in various company marketing activities throughout the year. Determine the cost per unit

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