The bonds are dated january 1 2012 and mature january 1

Assignment Help Accounting Basics

Reference no: EM13480529

(Entries for Bond Transactions) On January 1, 2012, Osborn Company sold 12% bonds having a maturity value of $800,000 for $860,651.79, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2012, and mature January 1, 2017, with interest payable December 31 of each year. Osborn Company allocates interest and unamortized discount or premium on the effective-interest basis.

Instructions

(a) Prepare the journal entry at the date of the bond issuance.

(b) Prepare a schedule of interest expense and bond amortization for 2012-2014.

(d) Prepare the journal entry to record the interest payment and the amortization for 2014.

Reference no: EM13480529

Questions Cloud

Discuss the advantages and disadvantages of chieftain : discuss the advantages and disadvantages of chieftain having no long-term debt and such a large cash balance at the end

Compute trend percents for the individual items of both : selected comparative financial statements of cohorn company followcohorn companycomparative income statement 000for

What is the difference between financial statements : what is the difference between financial statements prepared from the expanded accounting equation and those prepared

Budgeted fixed manufacturing overhead for the period is : the following standard costs were developed for one of the products of ferrars companystandard cost card per

The bonds are dated january 1 2012 and mature january 1 : entries for bond transactions on january 1 2012 osborn company sold 12 bonds having a maturity value of 800000 for

Our division allows for up to 25 of sales in returns for : our division allows for up to 25 of sales in returns. for the past 4 years returns have averaged 20. we record revenue

In july normally a slack manufacturing month shurshot : shurshot sports inc. manufactures basketballs for the national basketball association nba. for the first 6 months of

Compute the present value for each of the following bonds : compute the present value for each of the following bondsa. priced at the end of its fifth year a 10-year bond with a

Kerry corp purchased a used bottling machine from bobs : kerry corp purchased a used bottling machine from bobs bottling inc. on jan 1 2012 for 900000. bob accounted for the

User Account

All Pages