User Account

All Pages

Prepare the journal entry to record the early retirement

Assignment Help Accounting Basics
Reference no: EM133127763

Question - On January 1, 2021, Torganic Products issued $1,400,000 par value, 7%, 5-year bonds. Interest is payable semiannually at the end of the period. The market rate of interest on the date of the bond issue was 6%.

Required -

A. Determine the issue price of the debt.

B. Prepare the amortization table for the bond issue assuming that Torganic Products uses the effective interest rate method of amortization.

C. Prepare the journal entry to record the bond issue. Assume that the company uses a premium or discount account if needed.

D. Prepare the journal entry to record the early retirement of the bonds at the end of the third year (December 31, 2023) for $1,465,000.

Reference no: EM133127763

Questions Cloud

Compute amount of his taxable income subject to basic tax : Michael Cabarles, single, has the following income and expenses for the year 2018. Compute the amount of his taxable income subject to basic tax
ME5524 Biofluid Assignment : ME5524 Biofluid Assignment Help and Solution, Brunel University - Assessment Writing Service - Wave Intensity Analysis
Determine the cost of goods manufactured for the year : The following information was provided by Wilson Co. for the year just ended: Gross Margin $200,000. Determine the cost of goods manufactured for the year
Determine its after tax profit margin : After paying interest on a loan, ABC co. had net income before taxes of $200,000 and sales of $2,000,000. Determine its after tax profit margin
Prepare the journal entry to record the early retirement : Prepare the journal entry to record the early retirement of the bonds at the end of the third year (December 31, 2023) for $1,465,000
Construct the shareholders equity section for balance sheet : Purchased 100,000 shares of common stock at $32 per share. Construct the shareholders equity section for balance sheet
Calculate the new total balances on march : Purchased equipment for $800, giving $200 cash and promising to pay the balance in 30 days. Calculate the new total balances on March, 31st
What is the income from continuing operations : The company has reported Net Income of $6.1 million. What is the income from continuing operations to be reported on the income statement for the year
Determine the ab net purchases for the period : AB Ltd.'s Inventory increased by $1,790 during the year. Also during the year the cost of goods sold was $5,426. Determine the AB's net purchases for the period

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd