User Account

All Pages

Prepare the journal entry to record this redemption

Assignment Help Accounting Basics
Reference no: EM133053390

Question - Cheyenne Co. is building a new hockey arena at a cost of $ 2,750,000. It received a downpayment of $ 350,000 from local businesses to support the project, and now needs to borrow $ 2,400,000 to complete the project. It therefore decides to issue $ 2,400,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 9%.

Required -

(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2019.

(b) Prepare a bond amortization schedule up to and including January 1, 2023, using the effective interest method.

(c) Assume that on July 1, 2022, Cheyenne Co. redeems half of the bonds at a cost of $ 1,273,900 plus accrued interest. Prepare the journal entry to record this redemption.

Reference no: EM133053390

Questions Cloud

Calculate the break-even point in units and dollars : Eye and View Ltd manufactures and sells lamps. The company sells each lamp for $75. Calculate the break-even point in units and dollars
The fast-food hamburger industry in wheatley town : Wheatley Town residents loved to eat hamburger meals made up of hamburgers, fries and a soft drink. It is no wonder that quick service hamburger restaurants can
Financial management responsibilities of the controller : What is the difference in the financial management responsibilities of the controller and treasurer?
Stp from implementation to convergence : Describe the process of STP from implementation to convergence. What is a network storm and how does STP help prevent it from happening on the network?
Prepare the journal entry to record this redemption : Cheyenne Co. redeems half of the bonds at a cost of $ 1,273,900 plus accrued interest. Prepare the journal entry to record this redemption
What is the effect of globalization on business ethics : What are ethics? How do ethics differ from law? What is the effect of globalization on business ethics?
Identify the steps management applied to tackle : Describe how the pandemic affected United Airlines and faced a major challenge or crisis in the last three years.
Money skewing political system : Income inequality may have knocked the nation's middle class on its heels and there's way too much money skewing our political system.
Components of information system infrastructure : What is the aim of a business (large or small) when implementing an Information System? List the components of an information system infrastructure.

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