Prepare the journal entry for the bond issuance by seymour

Assignment Help Financial Accounting

Reference no: EM13747768

Seymour Group issued $4,000,000 of 15 year 8% stated rate bonds on July 1, 2014 to yield 10%, which is similar to the current market rate for bonds of similar riskiness. The bonds are semi-annual and the first interest payment is December 31, 2014.

Required:

A. Prepare the journal entry for the bond issuance by Seymour on July 1, 2014.

B. Prepare the December 31, 2014 interest payment journal entry for Seymour using the effective interest method.

C. Provide the balance sheet carrying amount and presentation for the bonds on December 31, 2015 by Seymour.

Reference no: EM13747768

Questions Cloud

What is the value of the work-in-process inventory : Roswell Refiners restarted operations on September 1 after a 3 month shutdown. There were no beginning inventories. Compute cost of goods sold for September. What is the value of the work-in-process inventory on September 30?

Research presentation about dna : Research presentation about DNA with explanation stealing from the internet

Calculate the amount to be recorded as a leased asset : Stevie Hightower leased a machine on December 31, 2013, for a three-year period. The lease agreement calls for annual payments in the amount of $17,000 on December 31 of each year beginning on December 31, 2013. Hightower has the option to purchase t..

Determine the amount of over or under applied overhead : Danner Corporation applies overhead based upon machine-hours. Budgeted factory overhead was $375,000 and budgeted machine-hours were 12,500. Actual factory overhead was $387,920 and actual machine-hours were 13,150. Determine the amount of Over- or u..

Prepare the journal entry for the bond issuance by seymour : Seymour Group issued $4,000,000 of 15 year 8% stated rate bonds on July 1, 2014 to yield 10%, which is similar to the current market rate for bonds of similar riskiness. The bonds are semi-annual and the first interest payment is December 31, 2014.

Prepare the journal entry for the bond issuance by bondsrus : BondsRus, Inc issued 10 year semi-annual bonds on January 1, 2014 at 103 with a face amount of $400,000 and a coupon rate of 7%. They use the straight-line method to calculate interest expens. Prepare the journal entry for the bond issuance by BondsR..

Determine the effective interest rate : On October 1, 2013, King Company issued to Nations Bank a $600,000, 8-month, noninterest-bearing note. Interest was discounted by the bank at a 12% discount rate. Prepare the appropriate journal entry by King to record the issuance of the note. Deter..

Prepare journal entries that summarize the sales : Hardin Widget Manufacturing began operations in January 2013. Hardin sells widgets that carry a two-year manufacturer's warranty against defects in workmanship. Hardin's management projects that 3% of the widgets will require repair during the first ..

Prepare the journal entries necessary to account : Blapper., purchased 10% of Nicks Enterprises for $1,000,000 on January 1, 2013. Nicks recognized a total of $440,000 net income during 2013, paid $40,000 of dividends to Blapperduring 2013, and at December 31, 2013, the market value of the Nicks inve..

User Account

All Pages