What should be the amount of the debit to interest expense

Assignment Help Accounting Basics
Reference no: EM132560419

Question - Kenzy Corporation issued $3,000,000 of 9%, ten-year convertible bonds on July 1, 2018 at 96.1 plus accrued interest. The bonds were dated April 1, 2010 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2019, $600,000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion

(1) If "interest payable" were credited when the bonds were issued, what should be the amount of the debit to "interest expense" on October 1, 2018?

(2) What should be the amount of the unamortized bond discount on April 1, 2019 relating to the bonds converted?

Reference no: EM132560419

Questions Cloud

What method of costing and traditional system : What method of costing system (Traditional/ABC) do you think is appropriate for this company? Describe each method first and support your argument.
Write a balanced reaction first : What volume of 0.305 M AgNO3 is required to react exactly with 155.0 mL of 0.274 M Na2SO4 solution?
What volume of 0.244 m kcl solution : According to the following reaction, what volume of 0.244 M KCl solution is required to react exactly with 50.0 mL of 0.210 M Pb
Discuss and explain the value of accounting : Discuss and explain the value of accounting (management accounting and financial accounting) and finance in day to day operation and project evaluation?
What should be the amount of the debit to interest expense : If "interest payable" were credited when the bonds were issued, what should be the amount of the debit to "interest expense" on October 1, 2018
Write the general structure of an amino acid : Identify what portion is common to all amino acids and what portion is different for each specific amino acid.
Illustrate the inter-relationship of governance : Illustrate the inter-relationship of Governance, Risk Management, and Control of Coca-cola Company. Design a simple one-line audit plan
Calculate the amount of coke : Calculate the amount of coke (C, in kg) needed to be burned in order to heat 500. kg of water from 20.0 degrees
How should Amel report the retirement of the bonds : Assuming that the bonds were called in and retired on March 1, 2012, how should Amel report the retirement of the bonds on the 2012 income statement

Reviews

Write a Review

Accounting Basics Questions & Answers

  When told that ben has left the country

When told that Ben has left the country, Jess strikes out Ben's indorsement. Later, she learns that Ben is a wealthy restaurant owner in Baltimore and that Gil is financially unable to pay the note. Jess contends that as a holder in due course, she c..

  Primary features of bpm software

Search the Internet for a specific technology to automatically capture a professional employee's time spent on a particular client engagement. What is the name of the software package and what are the primary features of this BPM software?

  Budgeted purchases for the fourth quarter

If the December 31 inventory is targeted at $41,500, budgeted purchases for the fourth quarter should be:

  Difference between program revenues and general revenues

Explain in your own words the difference between Budgetary Basis vs. GAAP? What is the difference between Program Revenues and General Revenues?

  How many customers would need to break even

Ofosu sat down to look at the numbers. Before moving forward with opening the photocopying store, he wanted to determine how many customers he would need.

  Debt limits while for profit corporations

Why to governmental entities have debt limits while for profit corporations do not? What are the debt margin and the concept of overlapping debt?

  What is the proper journal entry to adjust the cash account

What is the proper journal entry to adjust the cash account on Wifi Inc.'s book for the customer's NSF check that had been returned by the bank

  If sales totaled 800000 for the year 80000 units at 1000

1.if sales totaled 200000 for the current year 10000 units at 20 each and planned sales totaled 187500 12500 units at

  Prepare a bank reconciliation for November

Dine-Corp International publishes ratings and reviews of the world's finest restaurants. Prepare a bank reconciliation for Nov. 2017

  The differences in the accounting treatments

The differences in the accounting treatments of depreciation and cost depletion.

  What is standard direct labor cost per unit of product Glu

Time required to make one unit - 2 direct labor-hours. What is the standard direct labor cost per unit of product Glu

  How much interest do the borrowers pay

Determine the monthly payment for a thirty-year real estate loan with an annual percentage rate of 8.5% and an initial principal of $200,000.

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