User Account

All Pages

Prepare the necessary journal entries in august

Assignment Help Accounting Basics
Reference no: EM132076790

Question - Blue Mountain Power COMPANY obtained authorization to issue 20 year bonds with a face value of 10 million. The bonds are dated may 1, 2011, and have a contract rate of interest of 10 percent. They pay interest on November 1 and May 1. The bonds were issued on August 1, 2011, at 100 plus three months accrued interest.

Instructions: Prepare the necessary journal entries in general form on:

a. August 1, to record the issuance of the bonds.

b. November 1, 2011, to record the first semiannual interest payment on the bond issue.

c. December 31, 2011, to record interest expense accrued through year-end. (Round to nearest dollar.

d. May 1 , 2012, to record the second semiannual interest payment.

e. What was the prevailing market rate of interest on the date that bonds were issued?

Reference no: EM132076790

Questions Cloud

Find the consumer surplus and the producers surplus : If the market price is set at the equilibrium price, find the consumer's surplus and the producers' surplus.
Three important criteria of nomothetic causality : If this is the case the idiographic approach would be to look at everyone possible factor that would impact this hypothesis.
Usually occurs between manager and subordinate employee : The administration of discipline usually occurs between a manager and a subordinate employee.
Determine whether the integral is divergent or convergent : Determine whether the integral is divergent or convergent. If it is convergent, evaluate it. If not, state your answer as "divergent."
Prepare the necessary journal entries in august : Blue Mountain Power COMPANY obtained authorization to issue 20 year bonds with a face value of 10 million. Prepare the necessary journal entries in August
Determine the demand function c : Suppose that a cell phone plan that is offered at a price of P dollars per month attracts C customers, where C(P) is a linear demand function for $100 = P = $60
How are your biases and assumptions toward the website : With that in mind, please visit the infowars website in the above link and peruse some of the stories as well as its design.
What is the cost of producing 450 additional units : If production is set at 3200 units, what is the cost of producing 450 additional units? (Round your answer to the nearest cent.)
What is the amount of depreciation for the second full year : It is to be depreciated using the units-of-activity method of depreciation. What is the amount of depreciation for the second full year

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