Siburo company issued 300000 11 10-year bonds on january 1

Assignment Help Accounting Basics
Reference no: EM13390185

Siburo Company issued $300,000, 11%, 10-year bonds on January 1, 2011, for $318,694. This price resulted in an effective-interest rate of 10% on the bonds. Interest is payable semi-annually on July 1 and January 1. Siburo uses the effective-interest method to amortize bond premium or discount.

Required:

Prepare the journal entries to record the following. (Round to the nearest dollar)

(a) The issuance of the bonds.

(b) The payment of interest and the premium amortization on July 1, 2011, assuming that interest was not accrued on June 30.

(c) The accrual of interest and the premium amortization on December 31, 2011.

Reference no: EM13390185

Questions Cloud

Analyze the concepts of public safety and government : review the ethisphere institutes list of the worlds most ethical companies research a sampling from the organizations
For a given inventory item the suitable risk of a stockout : for a given inventory item the appropriate risk of a stockout has been determined to be 12. demand for this item
Describe the changes in interest rates inflation and : 1. discuss the current economic situation in the u.s. as compared to five 5 years ago. include interest rates inflation
Which of the given statements regarding the difference : which of the following statements about the difference between services and manufactured goods is most appropriate? a.
Siburo company issued 300000 11 10-year bonds on january 1 : siburo company issued 300000 11 10-year bonds on january 1 2011 for 318694. this price resulted in an
An analyst is assessing two time-series forecasting methods : an analyst is evaluating two time-series forecasting techniques. using data from the past she notes that technique b
Hydra has 113 billion in debt outstanding a market : hydra multinational is a vast conglomerate firm involved in a wide array of business ventures ranging from satellite
Consumersrsquo choices are prey to subtle discrepancies : expected value and consumer choicesconsumersrsquo choices are prey to subtle discrepancies that arise in cognitive
Explain the us tax consequences of hans us : hans a citizen and resident of argentina is a retired bank executive. hans does not hold a green card. at the start of

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is sam basis in the moore stock

Barbara transfers $10,000 cash and machinery having a $!5,000 basis and a $35,000 FMV to Moore Corp. in exchange for 50 shares of Moore stock.

  Single step income statement and retained earnings statement

The following information was taken from the records of Roland Carlson Inc. for the year 2007. Income tax applicable to income from continuing operations $187,000-Prepare a single-step income statement for 2007. Prepare a retained earnings statemen..

  Identify other professional accounting organizations

assume that you are a practicing CPA working in a public accounting firm. Discuss how a membership to the AICPA would help you professionally.

  1 maker systems manufactures automated test systems that

1. maker systems manufactures automated test systems that perform quality inspections during and at the completion of

  Determining reduction of retained earnings

The directors declare a 10% stock dividend when the market value is $15. The reduction of retained earnings as a result of the declaration will be:

  Accounted as part of gordon stockholders equity

At the date of issuance, the market value of the bonds, without the stock warrants, was quoted at 96. The market value of each detachable warrant was quoted at $40. What amount, if any, of the proceeds from the issuance should be accounted for as ..

  What is the current market price of the bond

The current interest rate is 10 percent, what is the current market price of the bond?

  Problem regarding current product mix

At the current product mix, how many bottles of Shiny Coat and Flea-B-Gone must the Doggy Palace sell in a year in order to earn a profit of $25,000? (number of each)

  Determine the total compensation cost

The common shares have a market price of $22.50 per share on the grant date. Suppose Magnetic Optical expected a 10% forfeiture rate on the restricted shares prior to vesting Determine the total compensation cost.

  Research specific company in one of business sectors

Research a specific company in one of the business sectors that interests you and describe how you imagine it might be to work there. Use 100 to 150 words for your description.

  Basics of economic entity concept

Under the economic entity concept, which of the following statements is true?

  Determining projected ending retained earning balance

What is the projected ending retained earning balance of march 31, 2012, assuming that 2010 was their worst year of business?

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