What are the journal entries during the term of the bonds

Assignment Help Accounting Basics
Reference no: EM132700721

On january 1 20x1 an entity issues bonds with face amount of P 8 000 000 for P 8 600 000. The bonds mature on December 31, 20x4 and pay annual interest of 11% every December 31. The entity incurs transaction cost of P 81 645. The effective interest rate adjusted for transaction costs is 9%.

Requirement:

Question a. What is the initial carrying amount of the bonds.

Question b. What is net discount or a net premium (includig the effect of the bond issue cost) from the issuance on initial recognition.

Question c. Are the periodic interest payments greater than or less than the periodic interest expense?

Question d. What are the journal entries during the term of the bonds.

Reference no: EM132700721

Questions Cloud

What is the diacount or premium on the bonds on january : What is the diacount or premium on the bonds on january 1 20x1. On january 1 20x1 an entity issues 9% 3 years P 3 000 000 bonds at price
Theories of systems thinking and agile management : Assess how the theories of systems thinking and agile management enhance the POLC, so that an organization is more effective in a business environment
What is the entry on september to record : On september 1 20x1 an entity issues bonds with face amount of P 8 000 000. What is the entry on september 1 20x1 to record the issuance of the bonds.
What is the governments primary objective in negotiations : What is the governments primary objective in negotiations
What are the journal entries during the term of the bonds : On january 1 20x1, What is net discount or a net premium (includig the effect of the bond issue cost) from the issuance on initial recognition.
What was the final bank balance in the ledger at November : Unpresensented cheqyes were $700 and there was an outstanding deposit of $2300. What was the final bank balance in the ledger at 30 November
Analyze the applications of tvom : Analyze the applications of TVOM in topics of healthcare financial management. note: i am a mental health worker
Compute what is the amortization table of the bonds : Compute what is the amortization table of the bonds. On january 1 20x1 an entity issues bonds with face amount of P 5,000,000 for P 5 773 129.
What are some examples of jesus as a quiet : What are some examples of Jesus as a quiet, effective servant of all in the Bible? Where can we found this out. How could the example of Jesus be applied

Reviews

Write a Review

Accounting Basics Questions & Answers

  Accounts with actual amounts

You will note that the Accounting Equation comprises 3 "categories," each of which can be broken down further into accounts.  For each of the three main categories of the Accounting Equation, list 5 or more accounts with actual amounts that would ..

  Determine the fair value of the liability for Wallaby Ltd

Wallaby Ltd has a AA credit rating and can borrow at 6%, Determine the fair value of the liability for Wallaby Ltd and Dingo Ltd

  Based in italy datura ltd is an international

based in italy datura ltd. is an international importer-exporter of pottery with distribution centers in the united

  Calculate the net foreign factor income

Refer to the accompanying data (all figures in billions of dollars). From this information calculate the net foreign factor income

  Determine the sales required for the new store to earn a

melissa valdez is planning to expand her clothing business by opening another store. in planning for the new store

  Prepare any necessary adjusting journal entries at december

Prepare any necessary adjusting journal entries at December 31, 2013, pertaining to each item of other information (a-d)

  What are the tax implications of accepting contract proposal

The vessels it currently produces are practically identical and completed in approximately 8 months. What are tax implications of accepting contract proposal

  Refer to the above data if the product price is 185 at its

answer the next questions parts a and b on the basis of the following cost data for a firm operating in pure

  What is the present value of the cash flows from investment

A publisher is deciding whether or not to invest in a new printer. If the interest rate is 12%, what is the present value of the cash flows from the investment

  Introduction and framework for balance of assignment

Identify the company and very briefly summarize their scope of activities. Note that there are not many marks for this part of the assignment. It represents an introduction and framework for the balance of the assignment.

  Make the general journal entries for january

Make the General Journal entries (without explanation) for January 2 and January 15. If no entry is required then write "No Entry Required."

  Calculate the firms roi under each cost flow assumption

Suppose that two years later costs and prices were falling. Under FIFO, net income and average assets. Calculate the firm's ROI under each cost flow assumption.

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