Reference no: EM131356686
Saverin Inc. produces and sells outdoor equipment. On July 1, 2016, Saver in Inc. issued $14,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $15,902,691. Interest on the bonds is payable semi-annually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.*
2. Journalize the entries to record the following:*
a. The first semi-annual interest payment on December 31, 2016, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)
b. The interest payment on June 30, 2017, and the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)
3. Determine the total interest expense for 2016.
4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest?
5. Compute the price of $15,902,691 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearest dollar.)
|
Develop data to test logic of the inventory update program
: Develop data to test the logic of the inventory update program. The test data should allow for all possible combinations of master data and event data records.
|
|
Discuss about the social workers and the lgbtq population
: The LGBTQ community continues to experience incidences of prejudice and bias. Not only are these prejudices exemplified in interpersonal interactions through slurs and violent acts but also in the policies maintained in social work agencies and in..
|
|
Notes receivable and notes payable are short-term
: Presented below are a number of balance sheet items for Sage, Inc., for the current year, 2017. Goodwill $ 127,970 Accumulated Depreciation-Equipment $ 292,260 Payroll Taxes Payable 180,561 Inventory 242,770 Bonds payable 302,970 Rent payable (short-..
|
|
How do the chapman brothers measure job performance
: Describe how HomestarRunner.com uses technology in their business. How do they incorporate technological updates into their work? How do the Chapman brothers measure job performance?
|
|
Produces and sells outdoor equipment
: Saverin Inc. produces and sells outdoor equipment. On July 1, 2016, Saver in Inc. issued $14,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 8%, receiving cash of $15,902,691. Journalize the entry to record the amount of cash p..
|
|
Describe specific concerns that you have for the project
: Describe specific risks or concerns that you have for this project. Clearly explain why each is a risk or concern and the specific actions that you would recommend to mitigate the risk or concern.
|
|
Wimpees sell per month to break even
: Wimpee's Hamburger Stand sells the Super Tuesday Burger for $3.00 The variable cost per hamburger is $1.75; total fixed cost per month is $25,000. How many hamburgers must Wimpee's sell per month to break even? How man hamburgers must Wimpee's sell p..
|
|
Determine the engine system mixture ratio
: Determine the engine system mixture ratio and the system specific impulse.
|
|
How do employees at ziftycom communicate with each other
: How do employees at Zifty.com communicate with each other? Is communication formal or informal? Does information flow only from the top down-from owners to managers to drivers-or does it flow upward as well?
|