Use the effective interest method to amortize the premium

Assignment Help Accounting Basics
Reference no: EM132559859

Question - On April 1, 2014, Smart Way Freight Company sold $200,000 of its 9.5 percent, 20-year bonds at 106. The semiannual interest payment dates are April 1 and October 1. The market interest rate is 8.9 percent. The firm's fiscal year ends March 31. Prepare journal entries to record the sale of the bonds on April 1, the accrual of interest and amortization of premium on March 31, and the first interest payment on October 1. Use the effective interest method to amortize the premium.

Reference no: EM132559859

Questions Cloud

Diversification benefits that domestic sectors : Globalization is supposed to provide diversification benefits that domestic sectors in US can not.
How implementing an it compliance program : How Implementing an IT compliance program for key regulations such as Sarbanes-Oxley, HIPAA, Gramm-Leach-Bliley and others to achieve meaningful IT governance.
Describe drug therapy plan based on the patient history : Describe an appropriate drug therapy plan based on the patient's history, diagnosis, and drugs currently prescribed. Justify why you would recommend this drug.
What two companies interested in the type of location : What two companies should be most interested in this type of location? Use the Internet if necessary to perform some cursory research on different car companies
Use the effective interest method to amortize the premium : On April 1, 2014, Smart Way Freight Company sold $200,000 of its 9.5 percent, Use the effective interest method to amortize the premium
Neighbourhood student to cut the lawn : Suppose that the homeowner hires a neighbourhood student to cut the lawn. Is this activity included in real GDP? Comment on your answers.
What would the adjusting entry be for february : Heinz Structural Design has a monthly utilities bill of $140 that is regularly received after the month has ended. What would adjusting entry be for February
Shares of stock in google add to the nations gdp : Does my purchase of 100 shares of stock in Google add to the nations GDP? Why?
How the processes interact to affect the patient : A 65-year-old patient is 8 days post op after a total knee replacement. Patient suddenly complains of shortness of breath, pleuritic chest pain.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is puppy equity in income balance in swan

Puppy prepares its internal reporting for the year ending December 31, 2011. What is Puppy's Equity in Income balance in Swan for 2011

  What are the stages of system development life cycle

What are the stages of system development life cycle? What are the different approaches and their characteristics for system development

  Examine a client accounts receivable balance

Upper Limit on Misstatements Calculation: Monetary Unit Sampling. Jordan Thomas is using MUS to examine a client's accounts receivable balance.

  Five-year noncancelable lease for equipment

On January 1, 2011, Sauder Corporation signed a five-year noncancelable lease for equipment. The terms of the lease called for Sauder to make annual payments of $50,000 at the beginning of each year for five years with title to pass to Sauder at t..

  How does air france af classify operating expenses in its

1. how does air france af classify operating expenses in its income statement? how are these expenses typically

  During the year a piece of land held for future expansion

prepare a statement of cash flows indirect method for the company for the year ended december 31 2011net income for the

  What sales volume does ems need

EM Sales had $2,200,000 in sales last month. The contribution margin ratio was 30% and operating profits were $180,000. What sales volume does EM's need to yield a $240,000 operating profit? $600,000 $2,020,000 $2,400,000 $2,440,000

  What is net operating income under variable costing

Kassia Corporation manufactures and sells one product. What is net operating income under variable costing in the first year

  The waverly company has budgeted sales

The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units. The finished goods inventory at the start of the year is 5,000 units.

  Write memo to company chief financial officer

Write memo to your company's chief financial officer outlining your concerns with overhead allocation. Assume that your company sells portable housing

  Calculate the return on investment and residual income

Winona Industries has manufactured prefabricated houses for over 10 years. Calculate the Return on investment and Residual income

  Suppose the environmental protection agency is in the proces

Describe the two-step process involved in deciding how this unasserted assessment should be reported.

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