Prepare the journal entry for the issuance of the bonds

Assignment Help Accounting Basics
Reference no: EM13881219

1.On March 1, 2013, Brown Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2013, for $99 million (plus accrued interest). The bonds mature on December 31, 2032, and pay interest semiannually on June 30 and December 31. Brown Ferring's fiscal period is the calendar year.

Required:
1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale.
2. Prepare the journal entry for the issuance of the bonds by Brown Ferring.

Reference no: EM13881219

Questions Cloud

What does ups quantum view do for customers? : What does UPS Quantum View do for customers?
Adjust the bonds to their fair value for presentation : The bonds are not traded on an active exchange.
Briefly describe the main point of this article : Using a search engine, search for an article written by Vangie Beal titled Top 2012 e-Commerce Trend. Briefly describe the main point of this article.
Number of pints made and sold to the nearest integer : Initially, you have lost 20,000 dollars in the stock market and you continue to lose 350 dollars per month. In how many months will it be before your losses total 33,040 dollars, thus your balance is - 33,040? What is the monthly breakeven point for ..
Prepare the journal entry for the issuance of the bonds : The bonds mature on December 31, 2032, and pay interest semiannually on June 30 and December 31. Brown Ferring's fiscal period is the calendar year.
What is the primary motivation for channel stuffing : Visit the financial education website created by Equade Internet Ltd. at www.investopedia.com. Note the definition for channel stuffing. According to this site, what is the primary motivation for channel stuffing?
What are unintended consequences of financial innovation : Relate your answers to the movie ‘Inside Job’. What are the unintended consequences of financial innovation? What are the unintended consequences of regulation? Explain how the financial crisis of 2008 occurred—who is to blame?
Included in current assets : Which of the following items is NOT included in current assets?
Unsure about the assumptions of a growth rate : The Yurdone Corporation wants to set up a private cemetry business. According to the CFO, Barry M. Deep, business is "looking up". The company is somewhat unsure about the assumptions of a growth rate of 5.7 percent its cash flows. At what constant g..

Reviews

Write a Review

Accounting Basics Questions & Answers

  David company uses the weighted-average method in its

david company uses the weighted-average method in its process costing system. the first processing department the

  Keel companys fixed overhead costs for the year are

keel companys fixed overhead costs for the year are expected to be as follows depreciation 80000 supervisory salaries

  Bob company has the following records available when

bob company has the following records available when preparing its bank reconciliation for the month of march

  Market price per share of the common stock

At year-end, the company declares a 10 percent stock dividend-one share for each 10 shares held. If all parties concerned clearly recognize the nature of the stock dividend, what should you expect the market price per share of the common stock to ..

  Type of cultural shock

If you were to send your top managers to these countries, what type of cultural shock should they expect? How would you help them alleviate this stress? Provide a few examples from each country.

  Amortizing a net loss for pensions

Amortizing a net loss for pensions will: A) increase retained earning and increase accumulated other comprehensive income B) decrease retained earning and decrease accumulated other comprehensive income

  Impact of corporate taxation on accounting

What impact does corporate taxation have on the accounting profession? What type of role do you see yourself playing with regard to corporate taxation?

  What is the probability the person

What is the probability the person is 20 to 24 years old? What is the probability the person is 20 to 34 years old?

  What is the amount of cassadys deduction for transportation

cassady an employee of a law firm maintains an office at the principal business location of her firm. she frequently

  Amount of un-realized intercompany profit

The inventory cost Yukon $260,000 and was sold to Ontario for $390,000. Ontario still had $60,000 of the goods in its inventory at the end of the year. The amount of unrealized intercompany profit which should be eliminated in the consolidation pr..

  If you are harry potter what method of accounting do you

on 111990 the auf wiederschen company was founded in munich germany. this company makes those were 1 sponge hands that

  Net business profit of the partnership

Which of the following is TRUE of the net business profit of the partnership?

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