Prepare the journal entry to record the issuance of bonds

Assignment Help Accounting Basics
Reference no: EM131905110

Problem - Riverbed Co. is building a new hockey arena at a cost of $2,600,000. It received a down payment of $460,000 from local businesses to support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue $2,140,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 11%.

Prepare the journal entry to record the issuance of the bonds on January 1, 2016.

Reference no: EM131905110

Questions Cloud

What happens to abnormal profits in long run in a monopoly : Why might a firm in perfect competition continue production even though it is making a loss? What happens to abnormal profits in the long run in a monopoly?
How would you recommend star allocate the common costs : Question - Cost Allocation-Ethical Issues. How would you recommend Star allocate the common costs between drinks and pastries
Why does an individual firm face totally elastic demand : Why does an individual firm face totally elastic demand at one price in perfect competition? What happen to abnormal profits in long run in perfect competition?
Discuss why alcohol illegal and marijuana legal : If you had your choice between alcohol being legal and marijuana illegal as it is now or alcohol illegal and marijuana legal, which one would you choose.
Prepare the journal entry to record the issuance of bonds : Riverbed Co. is building a new hockey arena at a cost of $2,600,000. Prepare the journal entry to record the issuance of the bonds on January 1, 2016
What are the main assumptions of perfect competition : What are the main assumptions of perfect competition? In a monopoly, if a firm fixes the price, what determines the amount supplied?
How has the government helped small firms : How has the government helped small firms? How do small firms benefit an economy?. What is a market?
How many put options should be purchased : A portfolio manager in charge of a portfolio worth $25 million is concerned that the market might decline rapidly during the next six months.
Why has the small-firm sector of the economy grown : Give two examples of diseconomies of scale. Why has the small-firm sector of the economy grown in the 1980s and 1990s?

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.

  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!

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