What would be the amortization for the first year

Assignment Help Accounting Basics
Reference no: EM132724594

Question - Debit the cash account by $1,865,791 as this is the cash received at the time of issuance.

Debit the Discount on bond account $134,209 and it will be amortised over the period of bond life.

Credit the bond payable account by $2,000,000 as this is the value which will be paid at the time of maturity.

The bond of $134,209 would have to be amortized over the life of the bond. There are two methods of amortization. The straight line method and the effective rate.

Assume that you are using the effective rate method of amortization, what would be the amortization for the first year? and how would you journalize it?

Reference no: EM132724594

Questions Cloud

Physical sciences to engineering problems : Applications of the physical sciences to Engineering problems and Determine parameters within mechanical engineering systems
What are the equivalent units of direct material started : The firm employs a process costing system for its manufacturing operations. What are the equivalent units of direct material started during June
Opportunities in clinical versus management tracts : Research the clinical and management tracts for nursing advancement. Compare the opportunities in the clinical versus management tracts.
Bioterrorism threats : The basic functions of all levels of government-federal, state, and local-when responding to a possible bioterrorism threat.
What would be the amortization for the first year : Assume that you are using the effective rate method of amortization, what would be the amortization for the first year? and how would you journalize it
Health care technologies-pressures to control health care : How have new health care technologies and pressures to control health care costs affected nurses and nursing practice?
What is the Production Cost budget variance : Acme Manufacturing uses flexible budgeting. Fixed Production Costs 30,000. What is the Production Cost budget variance
Challenging barriers to effective communication : We face challenging barriers to effective communication in the healthcare field.
Find and determine the cost of the building : Damages awarded for injuries sustained in construction 84,000. Among the expenditures mentioned, determine the cost of the building.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discussion-absorption versus variable costing

There are several ways a company can allocate overhead costs to products produced or services provided. Two of these methods are absorption costing and variable costing.

  Advise managers whether or not this contract is profitable

Advise managers whether or not this contract is profitable. All assumptions must be clearly stated

  What is the effective interest rate that dealership earning

If you choose the 0% financing option, what is the effective interest rate that the auto dealership is earning on your loan

  Explain primary advantages of applying direct write-off

Based on information in the video, explain primary advantages and disadvantages of applying direct write-off over the allowance method of writing off accounts.

  Calculate price and efficiency variances for all of the

spam inc. had the following standard costs and plans for fiscal current year for the production of custom meat

  Cpa designation will do for you from a career perspective

Essay: What you believe a CPA designation will do for you from a career perspective?Where do you want to be career wise 5 years from now as being a CPA?

  A company purchased 20000 of merchandise transportation

a company purchased 20000 of merchandise. transportation costs were an additional 240. the company returned 320 of the

  Accounts receivable arising from sales to customers

accounts receivable arising from sales to customers amounted to 35000 and 40000 at the beginning and end of the year

  What is the unextended due date for the income tax return

What is the unextended due date for the income tax return of a corporation whose fiscal year ends on February 28? What is its extended due date?

  Prepare horizontal analysis of revenues

Prepare horizontal analysis of revenues and cost of goods sold, both in dollar amount and in percentage, for 2016 and 2017

  Evaluation of inventory

Evaluation of Inventory

  Which costing approach will produce the higher income

Write a short memo to the chief financial officer explaining which costing approach will produce the higher income and what the difference will be.

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