Semi-annual interest to interest unamortized bond

Assignment Help Accounting Basics
Reference no: EM13299956

On June 30, 2014, Griffin, Inc. sold $3,000,000 (face value) of bonds. The bonds are dated June 30, 2014, pay interest semiannually on December 31 and June 30, and will mature on June 30, 2017. The following schedule was prepared by the accountant for Griffin, Inc. for 2014.

Semi-Annual Interest to Interest Unamortized Bond

Interest Period be Paid Expense Amortization Amount Carrying Value

$75,000 $2,936,625

1 $120,000 $131,625 $11,625 63,375 1,936,625

Instructions

On the basis of the above information, answer the following questions. (Round your answer to the nearest dollar or percent.)

1. What is the stated interest rate for this bond issue?

2. What is the market interest rate for this bond issue?

3. What was the selling price of the bonds as a percentage of the face value?

4. Prepare the journal entry to record the sale of the bond issue on June 30, 2014.

5. Prepare the journal entry to record the payment of interest and amortization on December 31, 2014.

Reference no: EM13299956

Questions Cloud

How far from the center of the screen does the beam strike : Deflection of the electron beam in a tube TV set is accomplished by magnetic forces. how far from the center of the screen does the beam strike
Explain the h nmr spectrum of the purified cyclic acetal : Use the H NMR spectrum of the purified cyclic acetal to identify the major diastereomer From borohydride reduction. There are no minor diastereomers. Draw its structure including stereochemistry. Determine the ratio between major:minor.
Determine the magnitude of total acceleration of runner : An outdoor track is 125m in diameter. A runner increases her speed at a constant rate from 4 to 7 m/s over a distance of 30m. Determine the magnitude of the total acceleration of the runner 2 s after she begins to increase her speed.
Explain gibbs energy of a gas at room temperature increase : Does Gibbs energy of a gas at room temperature increase or decrease with increasing pressure and constant entropy
Semi-annual interest to interest unamortized bond : Semi-Annual Interest to Interest Unamortized Bond
Find its translational acceleration : A 1.2m long ramp is inclined at 13 degrees to the horizontal. A solid ball is released from rest at the to of the ramp. Find it's translational acceleration
Uncertainty in anthropogenic forcing : Uncertainty in anthropogenic forcing of climate at this time comes mainly from
Non-goalie hockey players : In December 2010, Technology University received a $2 million grant from the National Hockey Association to develop an effective neck brace to prevent injuries in its non-goalie hockey players
How much charge is on each disk? : Two 2.5cm -diameter disks spaced 2.0 mm apart form a parallel-plate capacitor. The electric field between the disks is 4.1×105 V/m. How much charge is on each disk?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Cash distributions from parakeet

Stacey and Andrew each own one-half of the stock in Parakeet Corporation, a calendar year taxpayer. Cash distributions from Parakeet are: $350,000 to Stacey on April 1 and $150,000 to Andrew on May 1.

  Sample selection-evaluation description in business

Describe the process of selecting and evaluating a sample. Why is sampling important to business? Are there situations in business where sampling would not be effective?

  Should hamilton follow his boss directive

The Dotson Company, owner of Bleacher Mall, charges Rich Clothing Store a rental fee of $600 per month plus 5% of yearly profits over $500,000. Matt Rich, the owner of the store, directs his accountant, Ron Hamilton, to increase the estimate of ba..

  Calculate number of unit sale in two different categories

Shopkeeper sale this good on breakeven. Calculate the no of Unit sale in two different categories This is a trading Company.

  How many dollars of revenue must the company generate

Circle K Furniture has a contribution margin ratio of 16%. If fixed costs are $176,800, how many dollars of revenue must the company generate in order to reach the break-even point?

  Year-end market price of share

Ralite Company had net income for the year of $20 Million. It had 2 Million sharees of comon stock outstanding, with a year-end market price of $82 a share. Dividends during the year were $5.74 a share.

  Sample journal transactions

What are some examples of basic entries to record transactions used in your organization? In your response, you are not required to journalize these entries.

  Weighted-average contribution margin ratio

Fields Corporation has two divisions; Sporting Goods and Sports Gear. The sales mix is 65% for Sporting Goods and 35% for Sports Gear. Fields incurs $2,220,000 in fixed costs. The contribution margin ratio for Sporting Goods is 30%, while for Spor..

  Declaration and issuance of the stock dividend

A company with 100,000 authorized shares of $4 par common stock issued 50,000 shares at $9. Subsequently, the company declared a 2% stock dividend on a date when the market price was $10 a share. The effect of the declaration and issuance of the s..

  Five characteristics-increase fraud possibility

Identify and explain 5 characteristics that may increase the possibility that financial statement fraud will occur in a company. Use examples to explain the company characteristics.

  Brief memorandum that responds to owners concerns

He explains that although he has invested a great deal in security, he is sure shoplifting and other forms of inventory shrinkage have occurred, but he does not see any deduction for shrinkage on the income statement. The store uses a perpetual in..

  What is alexandra basis in the land

Dove Corporation had purchased the land as an investment three years ago for $375,000, and the land was distributed subject to a $270,000 liability. Alexandra took the land subject to the $270,000 liability. What is Alexandra's basis in the land?

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