User Account

All Pages

Record the redemption of the bonds

Assignment Help Financial Accounting
Reference no: EM132315544

Question

Novak Corp.'s balance sheet at December 31, 2016.

Current liabilities Interest payable$ 91,000Long-term liabilities Bonds payable (5%, due January 1, 2027)$3,840,000 Less: Discount on bonds payable38,4003,801,600

Interest is payable annually on January 1. The bonds are callable on any annual interest date. Novak uses straight-line amortization for any bond premium or discount. From December 31, 2016, the bonds will be outstanding for an additional 10 years (120 months).

(a) Journalize the payment of bond interest on January 1, 2017.

(b) Prepare the entry to amortize bond discount and to accrue the interest on December 31, 2017.

(c) Assume on January 1, 2018, after paying interest, that Novak Corp. calls bonds having a face value of $640,000. The call price is 102. Record the redemption of the bonds.

(d) Prepare the adjusting entry at December 31, 2018, to amortize bond discount and to accrue interest on the remaining bonds.

Reference no: EM132315544

Questions Cloud

What are two factors used to evaluate reported information : Which of the following threats should we prioritize the highest when managing risk? What are the two factors used to evaluate reported information?
Discuss with particular reference to panel consensus : "Forecasting is both an art and a science." Discuss with particular reference to Panel Consensus and Econometric Method. The response must be typed.
How will the expenses of purchasing raw materials : How will the expenses of purchasing raw materials and paying construction crews be handled and/or identified for Year 1? For Year 2?
Define legislations to prevent monopolization of businesses : Name at least two legislations to prevent monopolization of businesses. Do you believe these legislations have been helpful? Discuss.
Record the redemption of the bonds : Assume on January 1, 2018, after paying interest, that Novak Corp. calls bonds having a face value of $640,000. The call price is 102.
Project Paper - Parental Knowledge on Oral Health Care : NMNR5203 Nursing Research Proposal Assignment, Open University Malaysia, Malaysia. Project Paper - PARENTAL KNOWLEDGE ON ORAL HEALTH CARE
Define reasons and incentives to engage in merger activities : Answer both question in 600 word apa format. provide references. What are the reasons and incentives to engage in merger activities?
Describe the objectives and main elements of CIRT plan : Describe the objectives and main elements of a CIRT plan. Predict the evolution of regulatory requirements mandating risk management processes and plans.
Does the act increase the marginal cost of lenders : The Truth-In-Lending Act (1968) requires the uniform disclosure of the interest rate to borrowers in a readily intelligible form. Assume that before the Act.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Explain and justify given trend and outline its implications

The above trends suggest an increasing use of sophisticated techniques linked with an increase in  payback. You are required to explain and justify this trend, and outline its implications.

  Predetermined rate was based on a cost formula

Westan Corporation uses a predetermined overhead rate of $22.30 per direct labor-hour. This predetermined rate was based on a cost formula that estimated $267,600 of total manufacturing overhead for an estimated activity level of 12,000 direct labor-..

  Some merchandise is custom-made to customer specifications

Daniel owns Veiled Wonders, a firm that makes window treatments. Some merchandise is custom-made to customer specifications, and some is mass- produced in standardized measurements. He has production workers who work primarily on standardized blinds ..

  Production report for each department using the fifo method

Healthway uses a process-costing system to compute the unit costs of the minerals that it produces. It has three departments: Mixing, Tableting, and Bottling. In Mixing, at the beginning of the process all materials are added and the ingredients for ..

  Record the issue of special assessment bonds

Four months prior to year-end, 6 % special assessment bonds totaling $500,000 were issued to fund a steetlight improvement project in a local subdivision. Debt Service Fund:. Record the issue of special assessment bonds. Record the current and deferr..

  Compute weighted average contribution margin

Waterside Company sells two products, Yellow models and Striped models. Yellow models sell for $50 per unit with variable costs of $30 per unit. Striped models sell for $60 per unit with variable costs of $25 per unit. Compute the weighted-average co..

  Calculate adjusted tax basis in asset

ABC Company purchased business property several years ago, paying $25,000 cash and borrowing $80,000 to fund the acquisition. ABC also incurred $2,000 of freight costs for shipping the property to its business location. ABC has also deducted $56,000 ..

  How various stakeholders-internal use information contained

Discuss how various stakeholders-internal and external-use information contained in the financial statements for decision making. Assess the company's overall financial performance and the integrity of its internal controls.

  Calculate firms after-tax weighted average cost of capital

Calculate the firms after-tax Weighted Average Cost of Capital - Compare the firm's capital structure with at least one other firm operating within a similar

  Calculate the fixed asset turnover ratio

Using Hasbro’s 2010 Net Sales Revenue of $4,002 (million) and its Net Fixed Assets of $221 (million) at December 30, 2009, calculate the fixed asset turnover ratio for 2010. (Do not round intermediate calculations. Round your answer to 2 decimal plac..

  Prepare a balance sheet for preeti inc.

Present the items above in proper format to prepare a balance sheet. Use the answer sheet provided.

  Congo express airways

The amount of interest expense recognized by Congo Express Airways on the bond issue in Year 1 would be?

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