Reference no: EM131130648
1. On June 1, 2010, Mordica Corp. issued $2,000,000, 9%, 5-year bonds at face value. he bonds were dated June 1, 2010, and pay interest semiannually on June 1 and December 1. Financial statements are prepared annually on December 31.
Instructions
(a) Prepare the journal entry to record the issuance of the bonds.
(b) Prepare the adjusting entry to record the accrual of interest on December 31, 2010.
(c) Show the balance sheet presentation on December 31, 2010.
(d) Prepare the journal entry to record payment of interest on June 1, 2011, assuming no accrual of interest from January 1, 2011, to June 1, 2011.
(e) Prepare the journal entry to record payment of interest on December 1, 2011.
(f) Assume that on December 1, 2011, Mordica calls the bonds at 102. Record the redemption of the bonds.
|
Annual expense ratio is netted out of the funds return
: You purchased 5,400 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $63.90 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 2 percent. Assume that the..
|
|
Calculate the renewal function
: Suppose that {N(t), t ≥ 0} is a renewal process for which the time τ between two consecutive renewals is a continuous random variable such that
|
|
What tax savings will result
: If the firm purchases the grinders before year end, what depreciation expense will it be able to claim this year? if the firm reduces its reported income by the amount of the depreciation expense calculated in part a, what tax savings will result?
|
|
Explain what relevance this has for risk management
: The liability of those who own a corporation is limited to their investment, while proprietors and general partners have unlimited liability for the obligations of their business. Explain what relevance this has for risk management.
|
|
Prepare the journal entry to record payment of interest
: Prepare the journal entry to record payment of interest on June 1, 2011, assuming no accrual of interest from January 1, 2011, to June 1, 2011.
|
|
What are the appropriate allocation rates
: St. Luke's hospital has three support departments and four patient services departments. Assume the hospital uses the direct method for cost allocation. Furthermore, the cost drive for general administration is patient services revenue, the cost driv..
|
|
Made up of two subsystems placed in parallel
: We consider a system made up of two subsystems placed in parallel. The first subsystem is composed of two components (components nos. 1 and 2) placed in parallel, while the second subsystem comprises a single component (component no. 3). Let Sk de..
|
|
How will concept help function as a nonprofit administrator
: Answer the following questions: What does the statement mean that nonprofit theories are complementary rather than rival? How will this concept help you function as a nonprofit administrator?
|
|
Use the renewal equation to find the distribution
: Use the renewal equation to find the distribution of the random variables τk, taking their values in the interval [0,π/2], of a renewal process for which
|