Reference no: EM132545932
Question - On July 1, 2020, Davis Corp. issued 10-year, 800 Bonds, Par Value $1,000 each, Bonds carry 10% coupon rate, with interest payable semi-annually on January 1 and July 1. The bonds were issued for $ 908,722. On January 2, 2022, Davis offered to buy back the bonds at 103. Forty percent of the bondholders accepted the offer. Davis uses the effective-interest method of amortizing premium or discount.
Instructions -
a) Prepare the journal entry to record the bond issuance.
b) Prepare the adjusting entry at December 31, 2020, the end of the fiscal year.
c) Prepare the entry for the interest payment on January 1, 2021.
d) What is the total cost of borrowing over the life of the bond?
e) Show the proper presentation for the Bonds on the Statement of Financial Position (Balance sheet) for Davis co. as of Dec 31, 2021.
f) Prepare the entry to record the retirement of the bonds for the 40% who accept the offer on January 2, 2022.
|
Compute the adjusted balance in the Bonds Payable
: Interest is payable annually on December 31. At December 31, 2020, compute the adjusted balance in the Bonds Payable account
|
|
Technology once organization invests in data systems
: Why do vendors have such an arrogant position about their technology once an organization invests in a data systems.
|
|
How idea of mineral rights can impact as business person
: Explain what you view as threats to intellectual property in today's world economy. What are some examples where intellectual property is threatened?
|
|
Discusses situational awareness
: Describe how situational awareness is a driver for detection and response controls.
|
|
Prepare the journal entry to record the bond issuance
: On July 1, 2020, Davis Corp. issued 10-year, 800 Bonds, Par Value $1,000 each, Prepare the journal entry to record the bond issuance
|
|
Create a digital marketing strategy using powerpoint
: For this assignment, use the small health care organization or department that you selected in the first assignment. Your presentation should be targeted.
|
|
Discuss if the pricing strategy is aligned with messaging
: Discuss if the pricing strategy is aligned with the messaging strategy in the promotions. For example, if the pricing strategy is premium pricing
|
|
What is the total amount of cash
: The partners shared profits and losses 10:20:30:40 respectively. What is the total amount of cash that was immediately available to be distributed to partners
|
|
What is the total value of icarus
: Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity.
|