User Account

All Pages

Prepare the journal entry to record the interest at june

Assignment Help Financial Accounting
Reference no: EM131035550

Problem1

On January 1, 2010, Branson Designers issued $900 Million of its 8% bonds $836 million. The bonds were then prices to yield 10%. The interest will be payable on June 30 and December 31. Branson records interest using the effective interest method to document the interest paid and discount amortization.

Requirements:

1. Using the information in Problem 1, complete the following items:

a. Prepare the journal entry to record the interest at June 30, 2010.
b. Prepare the journal entry to record the interest on December 31, 2010

Please show the journal entry to record the issuance of the bond and you must present the effective interest amortization table to support your entries.

Problem 2

On January 1, 2010, Karla Industries issued 10% bonds dated January 1, 2010, which has a face amount of 25 million. The bonds mature in 2020. The market rate of interest 12%. The interest is paid on June 30 and December 31. You must present the effective interest amortization table to support your entries.

Requirements:

2. Using the information in Problem 2, Please complete the following items:

a. Determine the price of the bonds at January 1, 2010
b. Prepare the journal entry to record the issuance by Karla Industries on Jan 1, 2010
3. Prepare both of the journal entries to record interest on June 30 and December 31.

Reference no: EM131035550

Questions Cloud

Discuss whether you agree or disagree with position taken : Discuss whether you agree or disagree with the position taken by the company or individual. Use generally accepted accounting principles in defending your position.
Chemical engineer with a graduate degree : Marc Brown is a chemical engineer with a graduate degree from MIT. Mr. Brown is African American. He applied for a chemical engineering position with Kincaid Paper Company. Although he was qualified for the job, he was not offered the position. Mr. B..
Find the contact potential from the diagram : Draw an equilibrium band diagram for this junction, including numerical values for the Fermi level position relative to the intrinsic level on each side of the junction. Find the contact potential from the diagram and compare with the analytical e..
According to basic ethical principles of scarce allocation : According to the four basic ethical principles of scarce allocation, which patient would you prioritize for treatment?
Prepare the journal entry to record the interest at june : Prepare the journal entry to record the interest at June 30, 2010. Prepare the journal entry to record the interest on December 31, 2010.
Determine distance of the first voltage minimum from the l : the distance of the first voltage minimum from the l
About to southern semiconductor corporation : The president of Southern Semiconductor Corporation (SSC) made this statement in the company's annual report: "SSC's primary goal is to increase the value of our common stockholders' equity." Later in the report, the following announcements were m..
Globalization is an important strategy for many firms : Globalization is an important strategy for many firms large or small. Yet, actual implementation varies according to the company, industry and the countries it wishes to enter. Explain how Apple’s globalization strategy for the i-Phone illustrates th..
How its globalization effort has succeeded or failed : Discuss Cemex’s primary motivation in entering markets outside Mexico. Then explain why its approach has emphasized local acquisitions and how its globalization effort has succeeded or failed

Reviews

Write a Review

Financial Accounting Questions & Answers

  Sales price under the consignment arrangement

Goochland retains title to the goods, and will record sales only if informed of such by Perkins Consolidated, who will keep 15% of the sales price under the consignment arrangement.

  Sawyer corporation issued 200000000 face value bonds on 1st

sawyer corporation issued 200000000 face value bonds on 1st july 2013. the bonds are a 20 year issue and carry a coupon

  Equivalent units of production for conversion costs

In the month of May, a department had no units in beginning work in process. During May, 80,000 units were started into production department. At the end of May there were 8,000 units in ending work in process that were 65% complete. Materials are ad..

  Estelle owns a pickup truck costing

Estelle owns a pickup truck costing $16,000 that she uses in her personal activities

  Highest contribution margin or contribution margin per hour

Assume that the scarce resource for the firm is time, that is if an hour more is spent on producing one more product, there would be an hour less spent on producing another product. The company should produce: highest contribution margin or con..

  Calculate the residual income for the tuxedo division

Calculate the residual income for the Tuxedo Division. Was the ROI for the Tuxedo Division greater than, less than, or equal to 7 percent?

  Meaning of discounted value of expected net receipts

What is the meaning of "discounted value of expected net receipts and what basis of valuation for Ferry's patents would be generally accepted in accounting? Give supporting reasons for this basis.

  Accounts have normal debit balances except

All of the following accounts have normal debit balances except

  Short-term capital gains

During the past tax year, Jane identified $77,600 as a non business bad debt. In that tax year, Jane had $155,200 of taxable income.

  Prepare the consolidated income distribution schedules

Prepare all the eliminations and adjustments that would be made on the 20X2 consolidated worksheet. Prepare the 20X2 consolidated income statement and its related income distribution schedules.

  Explain difference in profitability between companies

Compare growth of revenues versus income over time and between the two companies - how can you explain the difference in profitability between the two companies?

  An analysis of goulding inc disclosed changes in account

an analysis of goulding inc. disclosed changes in account balances for 2011 and the following supplementary data. from

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