Case study of boston enterprises

Assignment Help Accounting Basics
Reference no: EM13256916

On January 1, 2008, Boston Enterprises issues bonds that have a$3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.

How much interest will Boston pay (in cash) to the bond holder severy six months?

Prepare journal entries to record (a) the issuance of bonds onJanuary 1, 2008; (b) the first interest payment on June 30, 2008;and (c) the second interest payment on December 31, 2008.

Prepare the journal entry for issuance assuming the bonds areissued at (a) 98 and (b) 102.

Reference no: EM13256916

Questions Cloud

Determine the monthly savings : Determine the monthly savings that he should make with interest at 5.41% perannum to amount to $120,000 at the time his son will be 18 years old.
Find the fraction of ball initial kinetic energy : A ball of mass 0.40 kg is fired with velocity 140 m/s into the barrel of a spring gun of mass 2.1 kg initially at rest on a frictionless surface. What fraction of the ball's initial kinetic energy is stored in the spring
Explain what is the formula for corn oil : What is the formula for corn oil, a triglyceride containing palmitic, oleic and linoleic acids
Define three characteristics of a small business : It is no surprise that small business is the backbone of the U.S. economy. Estimates show that there were more than 627,000 new businesses in 2008.
Case study of boston enterprises : On January 1, 2008, Boston Enterprises issues bonds that have a$3,400,000 par value, mature in 20 years, and pay 9% interest semiannually on June 30 and December 31. The bonds are sold at par.
Types of totalitarian governments that arose after 1917 : Compare and contrast the two types of totalitarian governments that arose after 1917, that is, communism and fascism. What were the origins of these governments, their accomplishments, and their failures?
To avoid cascading impacts across the life cycle : Describe a method that can be used to monitor the progress to ensure schedule and budget constraint compliance and how change requests should be handled to avoid cascading impacts across the life cycle of the effort.
Explain an example of the how the structure of dna : Describe an example of the how the structure of DNA or the transfer of genetic information impacted someone's life.
Question regarding enviro company : Enviro Company issues 8%, 10 year bonds with a par value of$250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 1/2. The straight-line method is used to al..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  What is the company times interest earned ratio

Tree Frog Company is organized as a LLC and pays no income taxes. The company has fixed interest expense of $5,750, Sales of $253,000 and variable expenses of $189,750. What is the company's times interest earned ratio?

  Determine and discuss the best way to address

Analyze the special partnership issues and determine which you would be most likely to encounter in the business venture you described above (please feel free to be creative here). Determine and discuss the best way to address the special issue yo..

  Prepare the perpetual inventory schedule

Prepare the perpetual inventory schedule for the above transactions using (1) FIFO, (2) LIFO, and (3) average-cost. (If there is no entry, enter 0 for the amount. Round the unit average-cost to 2 decimal places. Round answers to 2 decimal places.)

  Determine the total dividends paid to each class

Wade's outstanding stock consists of 40,000 shares of noncumulative 7.5% preferred stock with a $10 par value and also 100,000 shares of common stock with a $1 par value.

  Financial perspective of balanced scorecard

Identify four measures that Nordstrom could include in the financial perspective of a balanced scorecard. How do the measures that you have chosen differ from one another? Ideally, should each measure increase or decrease over time?

  Determining annual rate of return

A financial analyst tells you that investing in stocks will allow you to triple your money in 15 years. What annual rate of return is the analyst assuming you can earn?

  Installment method of accounting

Company began operations on January 1, 2010, and appropriately uses the installment method of accounting. The following data are available for 2010:

  Financial impact of buying ct unit

The user has updated the question: User's response: Calculate the financial impact of buying a CT unit that would cost $3.0 million, would have a five-year useful life, would have a 10 percent salvage value.

  Constant growth dividend discount model

If a stock has a constant growth rate of 6% per year and paid a dividend of $5.00 yesterday, what is the value of the stock if the discount rate is 10%?

  Government reporting agencies

Why is it difficult to develop accounting reporting categories that are uniform for governments within the same type of entity (e.g. cities) and even more difficult to develop them for governments within different types of entities

  Investing an annuity contract

Welz Company is investing in an annuity contract that will return $25,000 annually at the end of each year for 25 years. What amount should Welz Company pay for this investment if it earns a 8% return?

  Net income in calculating net cash flow

Which of the following should be deducted from net income in calculating net cash flow from operating activities using the indirect method?

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