Prepare the journal entry to record the sale of the bond

Assignment Help Accounting Basics

Reference no: EM13395683

On June 30, 2014, Robertson, Inc. sold $3,000,000 (face value) of bonds. The bonds are dated June 30, 2014, pay interest semiannually on December 31 and June 30, and will mature on June 30, 2017. The following schedule was prepared by the accountant for Robertson, Inc for 2014.

Semi-Annual Interest to Interest Unamortized Bond

Interest Period be Paid Expense Amortization Amount CarryingValue

$75,000 $2,936,625

1 $120,000 $131,625 $11,625 63,375 1,936,625

Instructions

On the basis of the above information, answer the following questions. (Round your answer to the nearest dollar or percent.)

1. What is the stated interest rate for this bond issue?

2. What is the market interest rate for this bond issue?

3. What was the selling price of the bonds as a percentage of the face value?

4. Prepare the journal entry to record the sale of the bond issue on June 30, 2014.

5. Prepare the journal entry to record the payment of interest and amortization on December 31, 2014.

Reference no: EM13395683

Questions Cloud

Make a schedule reflecting annbspincremental analysisnbspof : washington company produced and sold 50000 units of product and is operating at 80 of plant capacity. unit information

Which methods will be used to present the operational : write an action plan of no more than 1750 words in which you consider ways to present the upcoming operational change

By using the mendels laws explain the phenotypic and : using mendels laws describe the phenotypic and genotypic ratios for the f2 generation if pea plants with restricted

Studer internationa in at least one paragraph answer the : 1.studer internationa in at least one paragraph answer the questions.what leadership skills are necessary in a

Prepare the journal entry to record the sale of the bond : on june 30 2014 robertson inc. sold 3000000 face value of bonds. the bonds are dated june 30 2014 pay interest

What if you could find out a childs predisposition to : the affordable care act was designed as insurance reform and not health care reform. a significant opportunity was

Write 200-300 words comprehensive note on functions and : write 200-300 words comprehensive note on functions and significance of financial intermediaries. write 200-300 words

Compare and contrast leadership theories in the textbooks : imagine the company you work for is expanding and restructuring. you are provided the opportunity to determine the

How many workers would the firm hire ensure that you : consider a firm as we did in the notes that maximizes it profits by selecting how many workers and how much capital to

User Account

All Pages