Which of the following is correct journal entry to record

Reference no: EM13135082

1. On November 1, 2015, Archangel Services issued $200,000 of 10-year bonds with a stated rate of 3%. The bonds were sold at discount for $191,000, and make semiannual payments on April 30 and October 31. At December 31, 2015, Archangel made an adjusting entry to accrue interest at year-end. How much interest expense is recorded at December 31, 2015?
2.On January 1, 2013, Davie Services issued $20,000 of 8% bonds that mature in five years. They were sold at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On June 30, 2013, how much are the total interest payments made to bondholders?
3. On January 1, 2014, Partridge Company issued $50,000 of 6-year bonds with a stated rate of 3%. The market rate at time of issue was 4%, so the bonds were discounted and sold for $47,331. Partridge uses the effective-interest rate of amortization for bond discount. Semiannual interest payments are made on June 30 and December 31 of each year. Which of the following is the correct journal entry to record the first interest payment? (Please round all amounts to the nearest whole dollar.)

Reference no: EM13135082

Questions Cloud

Difference between average total cost and variable cost : What is the difference between average total cost and average variable cost

Preparing financial statements : West County Bank agrees to lend Drake Builders Company $100,000 on January 1. Drake Builders Company signs a $100,000, 6%, 6-month note. What is the adjusting entry required if Drake Builders Company prepares financial statements on March 30?

Define aeroplane dynamics : Aeroplane Dynamics, Determine the steady thrust that would enable a 200-tonne airliner to reach its take-off speed (75 m sâ?'1), from rest, in 30 s

What volume of n2o3 will be produced : At a certain temperature and pressure 1.4 L of N2 reacts with 2.1 L of O2. If all the N2 and O2 are consumed, what volume of N2O3, at the same temperature and pressure, will be produced?

Which of the following is correct journal entry to record : On January 1, 2013, Davie Services issued $20,000 of 8% bonds that mature in five years. They were sold at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On June 30, 2013, how much are the total interest p..

Determining washer method : Use the washer method to find the volume of the solid of revolution formed by revolving the region bounded by f (x)= 3x^2 and g (x)=2x+1 about the x-axis.

Explain how legal codes and economicforces achieving rights : Explain how legal codes and economic forces conspired to prevent slaves, peasants, and workers from achieving rights as men and citizens.

What is annual payment sam must make to pay back his friend : Sam's friend would like to be reimbursed for the time value of money at a 10% annual rate. What is the annual payment Sam must make to pay back his friend?

Determining latin squares : Show that for n less than or equal to 4, any Latin square of order n can be obtained from the multiplication table of a group by permuting rows, columns, and symbols.

User Account

All Pages