Record the receipts of interest on June

Assignment Help Accounting Basics
Reference no: EM132887841

Problem - Investment Premium Amortization Schedule On January 1, 2019, Lynch Company acquired 13% bonds with a face value of $50,000. The bonds pay interest on June 30 and December 31 and mature on December 31, 2021. Lynch paid $51,229.35, a price that yields a 12% effective annual interest rate.

Required -

Record the purchase of the bonds.

Prepare an investment interest income and premium amortization schedule using the effective interest method.

Record the receipts of interest on June 30, 2019, and December 31, 2021.

Reference no: EM132887841

Questions Cloud

Prepare journal entries to record the purchase of the bonds : Prepare journal entries to record the purchase of the bonds, the first two interest receipts, and the sale of the bonds
Analysing current business portfolio : What should companies not do when analysing current business portfolio?
Leadership in implementing human resource strategies : How effective coaching style of leadership and pacesetting style of leadership in implementing human resource strategies?
Explain the influence of ecolabels : Explain the influence of ecolabels on the buying behavior of hotel guests.
Record the receipts of interest on June : Lynch Company acquired 13% bonds with a face value of $50,000. Record the receipts of interest on June 30, 2019, and December 31, 2021
Features of a good performance management system : Wang & Berman, (2001) identifies the features of a good performance management system to be:
Prepare an investment interest income : Prepare an investment interest income and discount amortization schedule using the effective interest method
Problems with contamination and deficiency : What problems with contamination and deficiency could occur with the forced distribution ratings?
Advantages the company has for sending a current employee : -For this expatriate assignment, what are at least 3 things the Company must do to prepare him/her to ensure that the employee will be successful in the new for

Reviews

Write a Review

Accounting Basics Questions & Answers

  Which is generally not an internal control activity

Which is generally not internal control activity? The treasurer signs and mails the checks. / Payroll is always vouchered. / Large checks require two signatures

  Cost-volume-profit analysis is based on three basic

cost-volume-profit analysis is based on three basic assumptions. which of the following is not one of these

  Compute the revised equity beta for Zonk

Assume that Zonk is a potential leveraged buyout candidate. Compute the revised equity beta for Zonk based on the new capital structure

  Calculate the cost of the ending finished goods inventory

Purchases of raw materials $260,000 and Maintenance, factory 74,000. Calculate the cost of the ending finished goods inventory

  Discuss testing in the audit of accounts payable

How do the results of these tests affect the extent of testing in the audit of accounts payable

  Prepare a schedule indicating cash collections from sales

The company expects to sell 10% of its merchandise for cash. Prepare a schedule indicating cash collections from sales for May, June, and July

  Determine state academic standards or other recognized

using a unit of instruction you have previously taught or one you want to teach this next year if you are an

  Explain why stewardship is an important concept

Read the Success on the OAES document for full instructions about how to use this system. Assigned questions for Module 1 are below.

  How much is Magdalena basis in the inventory received

The distribution results in a liquidation of both the partnership and her interest. How much is Magdalena's basis in the inventory received

  Incremental borrowing rate of the company

The incremental borrowing rate of the company is 9%, and the lessor's implicit interest rate is unknown. Pursuit Company uses the straight-line method of amortization and the calendar year for reporting purposes.

  Capstone research project

Capstone Research Project

  What is perth budgeted operating income

Company estimated sales of 11,000 units at $50 each, unit cost of goods sold of $22, marketing expense of $65,000. What is Perth budgeted operating income

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