Record issuance of the bonds on december

Assignment Help Financial Accounting
Reference no: EM132775105

On December 31, 2020, Leo Inc. issued 8%, 10-year bonds payable with a maturity value of $900,000. Interest will be paid semi-annually on June 30 and December 31. Leo's year-end is December 31. The market interest rate is 10%, and the issue price of the bonds is 88. Leo Inc. amortizes bond by effective interest method.

 Required:

Problem 1. Prepare an effective interest method amortization table for the first four semi-annual interest periods.

Problem 2. Record issuance of the bonds on December 31, 2020, the payment of interest and amortization on June 30, 2021, and on December 31, 2021.

Problem 3. Show how Leo Inc. would report the remaining bonds payable on its balance sheet at December 31, 2021.

Reference no: EM132775105

Questions Cloud

Compute the cash and cash equivalents : Compute for the cash and cash equivalents that will be reported on the December31, 2018 statement of financial position
What is the objective theory of contracts : In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet.
Prepare the journal entries : Jing Inc. had cost of goods manufactured for the month of July equal to 100,000; direct materials used P29,000; Prepare the Journal entries
Why can allergies be fatal : Thinking about allergic reactions, why can allergies be fatal? Must use academic source
Record issuance of the bonds on december : Record issuance of the bonds on December 31, 2020, the payment of interest and amortization on June 30, 2021, and on December 31, 2021.
Evaluate the effectiveness of the communication : Evaluate the effectiveness of the communication of Geico's total rewards program based upon the website's descriptions of the benefits. Recommend two areas for.
What is the carrying value of the computer software on dec : What is the carrying value of the computer software on December 31, 2020? DIG Inc. has developed computer software on January 1, 2020.
Prepare schedule of changes in the net monetary assets : Prepare schedule of changes in the net monetary assets of Boerkian for the year 2021 and properly label the resulting gain or loss
Do you believe teams are becoming more common place : Do you believe teams are becoming more common place in conducting day-to-day tasks within the workplace? Why, or why not? Your journal entry must be at least.

Reviews

Write a Review

Financial Accounting Questions & Answers

  When should revenue be recognized and why

When should revenue be recognized. Recognition of revenue from the cash sale of airline tickets, when the travel purchased will occur in the next fiscal period.

  Adjusting entries for interest

At December 31, 2017, Eric Corporation had tow notes payable outstanding (notes 1 and 2). At December 31, 2018, Eric also had two notes payable

  Determine where would the transaction be recorded

Determine Where would the transaction be recorded, A commitment was made to transfer general revenues to the entity in charge

  Discuss how the tps systems is implemented

Explain what you understand by Kaizen costing and contrast it to Business Process Re-engineering (BPR). Discuss how the TPS systems is implemented. There are four principles necessary for a system of TPS. Identify and explain them.

  Explain why process is required

Explain why this process is required (15 points) and (2) provide an example of the closing of an expense account, Salary Expense in the form of a journal entry

  Review the sales volume and price of each specific product

Review the sales volume, cost, and price of each specific product. Review each product's contribution to sales in terms of profit. Describe the relationship between sales and supportive employment.

  What is the cost of land improvements

Architect fee - P 950,000. Building permit or payment to city hall for approval of building construction - P150,000. What is the cost of land improvements

  Broze company makes four products in a single facility

Broze Company makes four products in a single facility.

  How pressure exerted on senior management

Describe how pressure exerted on senior management by shareholders and other parties may impact the accuracy of financial statements

  How the bond interest expense and the bonds payable

Show how the bond interest expense and the bonds payable should be reported on the annual financial statements for 2018. Prepare the journal entry to record

  What is meant by capital and by revenue expenditure

What is meant by capital expenditure and by revenue expenditure?- Some of the following items should be treated as capital and some as revenue. For each of them state which classification applies:

  What trader would first receive a maintenance margin call

If the required maintenance margin is $1,100, the trader would first receive a maintenance margin call at a wheat price closest to

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd