User Account

All Pages

Show the balance sheet presentation of the bond liability

Assignment Help Accounting Basics
Reference no: EM131130620

1. A Soprano Electric sold $3,000,000, 10%, 10-year bonds on January 1, 2010. The bonds were dated January 1 and pay interest July 1 and January 1. Soprano Electric uses the straight line method to amortize bond premium or discount.The bonds were sold at 104. Assume no interest is accrued on June 30.

Instructions

(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2010.

(b) Prepare a bond premium amortization schedule for the first 4 interest periods.

(c) Prepare the journal entries for interest and the amortization of the premium in 2010 and 2011.

(d) Show the balance sheet presentation of the bond liability at December 31, 2011.

Reference no: EM131130620

Questions Cloud

Use the projected financial data along with relevant data : Use the historical and projected financial data provided to prepare a pro forma income statement for the year ended December 31, 2010. Use the projected financial data along with relevant data from the pro forma income statement prepared in part (a) ..
Discuss the relationship between gangs and violence : Discuss the relationship between gangs and violence and discuss the prevalence of gang related violence in America.
Requires initial investment in spare parts inventory : Massey Machine Shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $380,000 is estimated to result in $145,000 in annual pretax cost savings. The press also requires an initial investment in sp..
What legal and ethical reaction of business community : State your opinion as to the impact of conducting business with these countries and the ramifications of doing so. What should be the legal and ethical reaction of the business community for these types of violations?
Show the balance sheet presentation of the bond liability : A Soprano Electric sold $3,000,000, 10%, 10-year bonds on January 1, 2010. The bonds were dated January 1 and pay interest July 1 and January 1.
What rate for inflation targeting : An economist suggests that what matters for financial markets is a stable inflation rate, not a zero inflation rate. As long as inflation is stable, all individuals can take this into account in their actions. a. What are the costs associated with..
Profile a cultural phenomenon : Profile a cultural phenomenon that you see as interesting or significant in some way. I need to write a paper and need ideas on who to set up my paper for the cultural phenomenon about TIME.
Create your own personal plan of action : Create your own personal plan of action on how you would reduce the enrollment of gang membership, the criminal activity of gangs, and the power of gangs in your current community.
The customers form a single waiting line : In a small train station, there are two counters where the travelers can buy their tickets, but the customers form a single waiting line. During the slack hours, only one counter is manned continuously by a clerk.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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