Record the sale of the bond

Reference no: EM131949876

Question: Buffer Enterprises has issued bonds on January 1, 2016. The bonds have a maturity value of $100,000 with a stated annual interest rate of 10%. Interest is paid semiannually on June 30 and December 31, and the bonds mature December 31, 2025 The bond is sold for $92,976.39 to yield an effective interest rate of 12%. The bond is for a ten year period.

Based on the above information make the following journal entries. You must show supporting computations to receive credit.

A. Record the sale of the bond.

B. Record the June 30th interest payment if the bond premium/discount is amortized using the straight-line method.

C.Record the June 30th interest payment on the bond using the effective interest method. Show all work to support your calculations.

Reference no: EM131949876

Questions Cloud

What experience do you have in providing fiscal law : As a Budget Analyst and member of the Finance Office team, you are the tax payer's advocate and will be responsible for reviewing programs for the proper.

Determine the probability mass function of the number : In a semiconductor manufacturing process, three wafers from a lot are tested. Each Wafer is classified as pass or fail.

Indicators of greater liquidity risk for bank : Which of the following are indicators of greater liquidity risk for a bank?

Give you actual practice in constructing a marketing plan : To teach you the importance of integrating material and achieving internal consistency. Give you actual practice in constructing a Marketing Plan.

Record the sale of the bond : Based on the above information make the following journal entries. You must show supporting computations to receive credit. Record the sale of the bond.

How does the presence of the two screw gun models affect : The lines produces Nail Guns (N), Screw Guns (S), Staplers (P), and Crimpers (C). The weekly demand rates are 1200 N, 1800 S, 2100 P and 300 C.

Prepare a balance sheet and income statement : Prepare a balance sheet and Income statement, in proper form for ABC Corp Corporation receives 1,000,000 from funding investors

What must be the beta for the second equity security : You are building a securities portfolio to be equally risky as the market itself. You have decided your portfolio will be equally-weighted among three holdings.

What are the major factors in selecting a vice presidential : What are the major factors in selecting a Vice Presidential candidate? Why would the selection of a Vice President undermine the primary process?

User Account

All Pages