The straight line method of amortization

Assignment Help Accounting Basics
Reference no: EM13870930

On January 1, 2010, the Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate. The bonds carry a 9% stated rate of interest, pay interest semiannually on June 30 and December 31, are due December 31, 2013 and are being held to maturity.

Required:
Prepare journal entries to record the purchase of the bonds and the first two interest receipts using:
1. The straight line method of amortization.
2. The effective interest method of amortization.

Reference no: EM13870930

Questions Cloud

Antibiotic-resistance : Part 1 (due November 15): Read the "Antibiotic-Resistance" topic (Content > Course Content > Week 4), then find an interesting scholarly or science news article (e.g., ScienceDaily, Scientific American, Science News, or a journal articles)about a sci..
What happens to budget line if all prices and income doubles : What combination of shocks could make the new budget line be completely inside and steeper than the initial budget line? What happens to the budget line if all prices and income doubles?
Which of the following happens faster : Imagine a small synthetic vesicle made from pure phospholipids enclosing an interior lumen containing 1mM glucose and 1mM sodium chloride. If the vesicle is placed in pure water, which of the following happens faster?a) water diffuses in
Argumentative essay - illegal immigration : Speech Argumentative Essay- TOPIC: Illegal immigration. SPECIFIC PURPOSE: To argue that illegal immigrants should not receive any governmental benefits until they become legal citizens
The straight line method of amortization : On January 1, 2010, the Kelly Corporation acquired bonds with a face value of $500,000 for $483,841.79, a price that yields a 10% effective annual interest rate.
What is the mrs at any point if x is a neutral good : What is the MRS at any point if x is a neutral good? Explain why. If the good on the y axis was a neutral good and the other good was a regular good.
Improving national and global business relations : Explain in what way reframing and metaphors can assist in improving national and global business relations
The company uses the effective interest method : On November 1, 2009, the Reid Corporation acquired bonds with a face value of $700,000 for $673,618.61.
Describe the electronic submission process : Describe the electronic submission process and the security measures present in this approach. Analyze the advantages over classic paper solicitations

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the sales activity variance for the basic modelis

a machine distributor sells two models basic and deluxe. the following information relates to its master

  What are the jurisdictions of the accounting standards

What are the jurisdictions of the accounting standards setting bodies GASB, FASAB, and FASB?

  Evaluation of division using return on investment

If a division is evaluated using return on investment (ROI) without regard to how assets are financed, the denminator in the ROI calculation will be

  Manufacturing co had 500 units three fifths completed in

manufacturing co. had 500 units three fifths completed in process at the beginning of the month. during the month 2000

  The board of directors of a corporation are elected by the

the board of directors of a corporation are elected by the corporate registrar. b. are responsible for day-to-day

  The president believes that a 16000 increase in the monthly

the president believes that a 16000 increase in the monthly advertising budget combined with an intensified effort by

  In 20x7 sproghe company produced a net income of 1860000 in

in 20x7 sproghe company produced a net income of 1860000. in a trend analysis based on 20x1 figures the 20x7 net income

  What is meant by risk

What is meant by risk, and why is it an important concept for decision makers to understand? What is the relationship between risk and accounting?

  A pension trust fund prepared two financial statements and

a pension trust fund prepared two financial statements and two supplementary schedules. where does the obligation

  Anderson nuclear power plant will be mothballed at the end

anderson nuclear power plant will be mothballed at the end of its useful life approximately 20 years at great expense.

  Dewey company uses the weighted-average method in its

dewey company uses the weighted-average method in its process-costing system. the first processing department the

  Indiana corporation produces a single product that sells fr

indiana corporation produces a single product that sells fr 9 per unit. during the first year of operations 100000

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