What journal entry did the company make in year two

Assignment Help Financial Accounting
Reference no: EM133046571

Question - You have the following information for Brophy, Inc. December 31 Long-Term Debt ($ in millions)Year 2 Year 1 7% debentures, $300 million face value, due Year 11, effective rate $14.6%$188.6 $182.7 Zero coupon bonds, $500 million face value, due Year 8, effective rate 12.0% 267.9 239.2 Mortgage debt, $850 million face value, due Year 5, effective rate 8.7%, secured by corporate headquarters 834.5 833.9 Various other long-term debt 12,444.2 16,329.2 Total long-term debt $13,735.2 $17,585.0

Assume the interest for all the bonds are based on annual basis.

Required -

1. How much interest expense did the company record during Year 2 on the 7% debentures? How much of the original issue discount was amortized during Year 2?

2. How much interest expense did the company record during Year 2 on the zero coupon bonds?

3. Suppose that interest payments on the mortgage are made on December 31 of each year. What journal entry did the company make in Year 2 to recognize interest expense on this debt?

4. How much cash interest did the company pay out during Year 2 on the 7% debentures and the zero coupon bonds?

Reference no: EM133046571

Questions Cloud

What is her taxable income : This year, Bobby had the following tax information: AGI of $91,300 and itemized deductions of $22,000. What is her taxable income in 2021
Approaches in developing strategies : Compare and contrast how Netflix, Redbox and Blockbuster use strategy against one another. Note: Please consider using Offensive and Defensive strategies in the
What act of parliament established commission : This question relates to the Office of the Australian Information Commissioner.
Create a context diagram : Book reading is an extremely healthy activity. It has many benefits and above all, it is exciting, entertaining and a great way to release stress, anxiety and d
What journal entry did the company make in year two : Suppose that interest payments on the mortgage are made on December 31 of each year. What journal entry did the company make in Year 2
Case study-jane attic : During November 2008, Jane Whitler decided to open a high-end used furniture store. Jane lived in a major metropolitan area in Southwest United States, and part
Planning your own entrepreneurial retail business : Donnelly's Jewelers, a family business your grandfather started in 1952, had annual sales last year of $900,560. Your parents, who purchased this business from
Is shoplifting just a cost of doing business : Peterson's is a women's apparel store that grew out of a bridal store that Liz Peterson's mother started in 1949. When Liz worked at Peterson's while in high sc
Calculate break-even point in sales dollars for Head-First : Head- First expects to produce total revenue of $557,000 and incur total variable cost of $382,000. Calculate break-even point in sales dollars for Head-First

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine the ending inventory cost using LIFO

There are 19 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the ending inventory cost using LIFO

  What percentage discount for cash could Fleming give

What percentage discount for cash could Fleming's give and still be no worse off than receiving full price under the terms of the sale

  What is the amount of each payment

You borrow $35,000 to buy a car. The terms of the loan call for monthly payments for five years at a 3.9% rate of interest. What is the amount of each payment?

  What amount should traylor debit the licensing agreement

At the time of the stock exchange, Traylor's $2 par value stock was selling for $14 per share. For what amount should Traylor debit the licensing agreement?

  The following is a list of account titles and amounts in

the following is a list of account titles and amounts in millions from a recent company annual reportbuildings and

  Why you need to stress the importance of npv

In your job, you need to face board of directors/shareholders to evaluate of the company's investment. Why you need to stress the importance of NPV

  Selling costs present value of future cash flows summation

Remaining life Original cost Accumu. Amorti.* Fair value Selling costs Present value of future cash flows Summation of future, undiscounted cash flows Patent 10 years $200,000 $100,000 $80,000 $2,000 $85,000 $95,000 Trademark Indefinite $250,000 - $2..

  Which of the companies would meet the definition

Which of the companies would meet the definition of a smaller reporting company with respect to public equity float and annual revenue

  Compare the direct write-off method to the allowance method

Compare the direct write-off method to the allowance method . what should be the balance of Allowance for Uncollectible Accounts at the end of the current year?

  What types of internal controls are put in place

What types of internal controls are put in place to specifically protect computer data and proprietary information?

  Relative to developing cost accounting systems

What is the overarching dilemma for most hospitals relative to developing cost accounting systems?

  Prepare x corporation journal entries

Prepare X Corporation's journal entries, under the equity method of accounting, to record Y Company's operating results for the fiscal year ended September

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