Prepare the journal entry to record the issuance of the bond

Assignment Help Accounting Basics
Reference no: EM132177714

Question - On January 1 of this year, Victor Corporation sold bonds with a face value of $1,420,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to whole dollars.)

Required: Prepare the journal entry to record the issuance of the bonds.

Reference no: EM132177714

Questions Cloud

Implementation of a new data management system : If you were creating a research team for implementation of a new data management system for the hospital system.
Why are these departments important to your department : Why are these departments important to your department? How well do the departments interact with your department
How can the majority shareholder shift wealth : How can the majority shareholder shift wealth through accounting cost allocations and transfer pricing? What are the implications of the composition
Create a comprehensive plan to motivate your workforce : You have been named the manager of a task force charged with conducting a critical but challenging change within your workplace.
Prepare the journal entry to record the issuance of the bond : Assume an annual market rate of interest of 6 percent. Prepare the journal entry to record the issuance of the bonds
How students can apply understanding of HESCD in work : Identify how students can apply understanding of HESCD in work, community, and life.
How will the bonds be reported on clearwater december : On January 1 of this year, Clearwater Corporation sold bonds with a face value of $755,000, How will the bonds be reported on Clearwater's December
Calculate the average daily demand : A local store sells toilet paper to people in the surrounding communities. Calculate the number of order placed per year? Calculate the average daily demand.
Define strengths and weaknesses of compensation method : Write a 1-page report of your findings. Specifically, address strengths and weaknesses of this compensation method, both from the point of view of the health.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine yoda annual depreciation expense for this truck

On 1/1/2011 yoda company purchased a truck for $80,000 this truck is expected to last 12 years, Determine yoda's annual depreciation expense for this truck

  Computing the predetermined overhead rate

Budgeted machine hours are 120,000 hours, and budgeted labor hours are 15,000 hours at a rate of $20.00 per hour. Compute the predetermined overhead rate based on:

  Internal rate of return-sensitivity analysis

Dr. Heidi Black is the managing partner of the Crestwood Dental Clinic. Black is trying to determine whether or not the clinic should move patient files and other items out of a spare room in the clinic and use the room for dental work. She has de..

  Prepare stockholders equity sheet

Jan. 11 Issued 21,800 shares of common stock at $17 per share. Prepare stockholders equity sheet as of Dec. 31 2017

  Elite company is planning to add a new product to its line

elite company is planning to add a new product to its line. to manufacture this product the company needs to buy a new

  Employer in accordance with the adoption plan

They spent $15,000 in connection with the adoption, all of which was paid by the employer in accordance with the adoption plan. How much of the employer paid adoption costs must be included in their income?

  After tax incremental cash flow

A project is estimated to generate $5,000 in incremental gross profit, which includes $200 in depreciation. Incremental SG&A expense is $400. At a 35% tax rate, what is the after-tax incremental cash flow? Should the project be accepted or rejecte..

  Describe the process ceemco should undertake to determine

Describe the process Ceemco should undertake to determine which accounting software might be the best fit for the company  Although you do not know much about the company, develop a list of requirements you believe any accounting software should hav..

  Briefly identify the general tax planning concepts

Briefly identify the general tax planning concepts that you must consider when deciding which option any taxpayer should use when practicing effective tax

  Compute diluted earnings per share for given years

In 2016, Stellar Enterprises issued, at par, 60 $1,000, 9% bonds, each convertible into 100 shares of common stock. Stellar had revenues of $15,600.

  Create an audit report with findings

Create an audit report with the findings being somewhere between $5,000,000 and $30,000,000 Include these items in the report: The area under audit where the finding occurred, The steps you undertook during the audit

  Prepare the journal entry for the issuance

Prepare the journal entry for the issuance when only the market price of the common stock is known and it is $ 170 per share

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