Reference no: EM13147158
Solve using the straight line method
The following transactions were completed by Simmons Inc., Whose fiscal year is the calendar year:
2012
July 1. Issued $64,000,000 of 10-year, 12% callable bonds dated July 1, 2012, at a market(effective) rate of 14% receiving cash of $57,219,878. Interest is payable semiannually on December 31 and June 30.
Oct 1. Borrowed $320,000 as a five-year, 6% installment note from Ibis Bank. The note requires annual payments of $75,967, with the first payment occurring on Septmber 30, 2013
Dec 31. Accrued $4,800 of interest on the installment note. The interest is payable on the date of the next installment note payment.
Dec 31. paid the semiannual interest on the bonds. the bond discount is amortized annually in a separate journal entry.
Dec 31. Recorded bond discount amortization of $339,006, which was determined using the straight-line methond.
Dec 31. Closed the interest expense account.
2013
June 30. Paid the semiannual interest on the bonds.
Sept 30. paid the annual payment on the note, which consisted of interest of $19,200 and principal of $56,767.
Dec 31. Accrued $3,948 of interest on the installment note. The interest is payable on the date of the next installment note payment.
Dec 31. Paid the semiannual interest on the bonds. The bond discount is amortized annually in a separate journal entry.
Dec 31. Recorded bond discount amortization of $678,012, which was determined using the straight-line method.
Dec 31. Closed the interest expense account.
2014
June 30. Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $5,424,098 after payment of interest and amortization of discount have been recorded. (Record the redemption only.)
Sept 30. Paid the second annual payment on the note, which consisted of interest of $15,794 and principal of $60,173.
INSTructions
1) Journalize the entries to record the foregoing transactions.
2) Indicate the amount of the interest expense in (a) 2012 (b) 2013
3) Determine the carrying amount of the nonds as of December 31,2013
|
Example of a planning proposal
: Giving an example of a planning proposal for the subject ashford universities proquest website, holiday breaks, and tutors, explain the problem then do the proposal
|
|
Nuclear engineering
: Could You please write cover letter example for me for applying for any company so that i can modify that cover letter and will apply for my intern.The cover letters should be based on nuclear engineering .
|
|
Why does economic analysis insist on an unrealistic analysis
: The simple case of pricing with market power assumes (a) all consumers are charged the same price, (b) the firm sells one product, (c) demand exists in one time period, and (d) competitors do not pursue pricing games. Economists insist on reviewing w..
|
|
Perform the 5-step hypothesis testing procedure
: Instructions: Perform the 5-step hypothesis testing procedure, HERE ARE THE STEPS THAT NEED TO BE FOLLOWED & THE RAW DATA IS BELOW. Hypothesis Testing Steps given
|
|
Solve using the straight line method
: Solve using the straight line method, The following transactions were completed by Simmons Inc., Whose fiscal year is the calendar year:
|
|
What will your monthly payments be
: You decide to borrow $200,000 to build a new home. The bank charges an interest rate of 6% compounded monthly. If you pay back the loan over 30 years, what will your monthly payments be (rounded to the nearest dollar)?
|
|
How many years is it until this bond matures
: The Lo Sun Corporation offers a 5.8 percent bond with a current market price of $823.50. The yield to maturity is 8.18 percent. The face value is $1,000. Interest is paid semiannually. How many years is it until this bond matures?
|
|
Financial status of the company
: You have been hired as a consultant by the Board of Directors of Landry's Restaurants, Inc. to evaluate the financial status of the company.
|
|
Compute the de broglie wavelength of a neutron
: Calculate the de Broglie wavelength of a neutron moving at 1.17% of the speed of light. _____m
|