Prepare the journal entry for the issuance assuming the

Assignment Help Accounting Basics

Reference no: EM13573366

Towel Enterprises issued 9%, 5-year, $2,000,000 par value bonds that pay interest semiannually on October 1 and April 1. The bonds are dated April 1, 2011, and are issued on that date. The discount rate of interest for such bonds on April 1, 2011, is 8%. What cash proceeds did Towel Enterprises receive from issuance of the bonds?

On July 1, 2011, Hobbit Company issued $600,000, 6%, 10-year bonds at face value. Interest is payable semiannually on January 1 and July 1. Hobbit Corporation has a calendar year end.

Prepare all entries related to the bond issue for 2011.

On January 1, 2011, Metal Gear Company issued bonds with a face value of $800,000. The bonds carry a stated interest of 7% payable each January 1 and July 1.

a. Prepare the journal entry for the issuance assuming the bonds are issued at 97.b. Prepare the journal entry for the issuance assuming the bonds are issued at 102.

Andy Dick sells televisions with a 2-year warranty. Past experience indicates that 2% of the units sold will be returned during the warranty period for repairs. The average cost of repairs under warranty is estimated to be $50 per unit. During 2011, 12,000 units were sold at an average price of $400. During the year, repairs were made on 70 units at a cost of $4,000.

Prepare journal entries to record the repairs made under warranty and estimated warranty expense for the year.

On January 1, 2011, Doctor X issued 8%, 20-year bonds with a face amount of $5,000,000 at 101. Interest is payable semiannually on June 30 and December 31.

Prepare the entries to record the issuance of the bonds and the first semiannual interest payment assuming that the Doctor uses straight-line amortization.

On January 1, 2011, Pacman Enterprises issued 9%, 10-year bonds with a face amount of $900,000 at 96. Interest is payable semiannually on June 30 and December 31. The bonds were issued for an effective interest rate of 10%.

Prepare the entries to record the issuance of the bonds and the first semiannual interest payment assuming that the company uses effective-interest amortization.

Spanner Company issued $1,000,000, 10%, 2-year bonds which pay interest semiannually. Compute the amount at which the bonds would sell if investors required a rate of return of 8%.

Reference no: EM13573366

Questions Cloud

Stan free company sells debt investments costing 26000 for : stan free company sells debt investments costing 26000 for 28000 plus accrued interest that has been recorded. in

Prepare a horizontal analysis of the balance sheet data for : suppose the comparative balance sheets of nike inc. are presented here.nike inc. condensed balance sheet may 31 in

The company recently purchasedpreferred stock in another : van dyke corporation hasa corporate tax rate equal to 36. the company recently purchasedpreferred stock in another

Determine the amount due the advertising agency that would : a list of several transactions that took place during two years of operations for rpg consulting.year 2 year 3amounts

Prepare the journal entry for the issuance assuming the : towel enterprises issued 9 5-year 2000000 par value bonds that pay interest semiannually on october 1 and april 1. the

On nov 12 ms don amp co sold merchandise on account to : complete all the steps of journalizing based on the information provided below. on december 15 ms. corne amp co.

Compare aspects of the bayeux tapestryto aspects of a war : if you had lived in europe during the middle ages explain whether you would have rather gone on a pilgrimage or on a

As an alternative to a summer job paying 6 per hour between : as an alternative to a summer job paying 6 per hour between her junior and senior years in college lori hart accepted

Considering that calligraphy and mosaic are visual : considering that calligraphy and mosaic are visual representations of religious belief compare and contrast islamic

User Account

All Pages