User Account

All Pages

Prepare the journal entry to record their issuance by patey

Assignment Help Accounting Basics
Reference no: EM132010934

Question - When Patey Pontoons issued 6% bonds on January 1, 2013, with a face amount of $600,000, the market yield for bonds of similar risk and maturity was 7%. The bonds mature December 31, 2016 (4 years). Interest is paid semiannually on June 30 and December 31.

Required:

1. Determine the price of the bonds at January 1, 2013.

2. Prepare the journal entry to record their issuance by Patey on January 1, 2013.

3. Prepare an amortization schedule that determines interest at the effective rate each period.

4. Prepare the journal entry to record interest on June 30, 2013.

5. What is the amount(s) related to the bonds that Patey will report in its balance sheet at December 31, 2013?

6. What is the amount(s) related to the bonds that Patey will report in its income statement for the year ended December 31, 2013? (Ignore income taxes.)

7. Prepare the appropriate journal entries at maturity on December 31, 2016.

Reference no: EM132010934

Questions Cloud

Previous history of lung disease : A young adult patient without a previous history of lung disease has an increased respiratory rate and reports a feeling of "not getting enough air."
How scope of practice for radiologic technologists varies : How the scope of practice for radiologic technologists varies for each state (e.g. administration, certification, regulation, etc).
Length in inches of the third side : A triangle has sides measuring 8 inches and 12 inches. If x represents the length in inches of the third side, which inequality gives the range of possible
What has happened to lira dollar value during this period : By how much has the dollar cost of room at Milan Hilton changed over this three-year period? What has happened to the lira’s dollar value during this period?
Prepare the journal entry to record their issuance by patey : The bonds mature December 31, 2016 (4 years). Interest is paid semiannually on June 30 and December 31. Prepare the journal entry to record their issuance
Bacillus cereus food poisoning : a) Suggest: i) A likely source of the B. cereus and how it could get into the meal. ii) How it would become a hazard?
Free antigen was present when specific antibody conjugate : a) In ELISA washing between steps is critical. Suggest what would happen (i.e. the result) if, due to poor washing:
Who else in a company would be better positioned : Do you believe that the CFO is the right person to protect a company's ethical standards? Who else in a company would be better positioned to protect
Chemical vapor depositor in order to make silicon chips : Cameron Industries is purchasing a new chemical vapor depositor in order to make silicon chips. what are the yearly depreciation expenses in this case?

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.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  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!

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