User Account

All Pages

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

Reviews

Write a Review

Accounting Basics Questions & Answers

  Company gross profit ratio

The Baldwin Wholesale Company began 2011 with inventory of $400,000 and ended the year with inventory of $500,000. The company's gross profit ratio is 25%, inventory turnover ratio is 2, and receivables turnover ratio is 4. Accounts receivable at ..

  Journal entry for depreciation-presentation

At the end of its first year, the trial balance of Eaton Company shows Equipment $30,000 and zero balances in Accumulated Depreciation?Equipment and in Depreciation Expense ?Equipment. Depreciation for the year is estimated to be $6,000.

  Explain how a company chooses a taxable year

Explain how a company chooses a taxable year. What do you think the taxable year for the following businesses would be:

  Percentage of receivables method

Why would you select the percentage of sales method of calculating doubtful accounts as opposed to the percentage of receivables method?

  Compute the volume in units

Compute the volume in units and the dollar sales level necessary to maintain the present profit level, assuming that the maximum price increase is implemented.

  Finished-goods inventory cost under absorption costing

What is the ending finished-goods inventory cost under absorption costing?

  Develop recommendations and conclusions

Develop recommendations and conclusions and state them and their rationale. Using and building on the previous information (provided by you) to answer the above from multiple sources and present that data in one to two pages (12-point font, do..

  Personal pravacy and confidentiality in banking

Discuss the conflict between the need for personal pravacy and confidentiality in banking transactions and the need for government to curtail money laundering activities

  Funds for printing needs

To fulfill the printing needs of its various departments and agencies, the City has established a Central Print Shop, which bills the various departments and agencies of the city for printing services rendered. The Central Print Shop should be acc..

  Problem regarding to gross income

Carin, a widow, elected to receive the proceeds of a $100,000 life insurance policy on the life of her deceased husband in 10 installments of $15,000 each. Her husband had paid premiums of $75,000 on the policy. In the first year, Carin collected ..

  Purchase price of the machine

what is the purchase price of the machine if the net present value of the investment is $170,000?

  Is an investor always better off buying tax exempt bonds

Under what conditions is an accrual-basis-tax-payer allowed to defer reporting amounts received in the advance payments received for services?

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