Construct a bond amortization table

Assignment Help Accounting Basics
Reference no: EM13144202

On June 1, 2009, Everly Bottle Company sold $400,000 in long-term bonds for $351,040. The bonds will mature in 10 years and have a stated interest rate of 9 % and a yield rate of 10.5%. The bonds pay interest annually on May 31of each year. The bonds are to be accounted for under the effective-interest method.

A. Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first five years. Make sure all columns and rows are properly labeled.

B. Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31,2011. Round to the nearest dollar

Reference no: EM13144202

Questions Cloud

What is the most likely chemical explanation for the fact : What is the most likely chemical explanation for the fact that butter is a solid at room temperature while olive oil is a liquid?
Four accounting regulatory bodies : Examine at least four accounting regulatory bodies and discuss how an organization complies with the standards of the regulatory bodies you slecet
How many grams of nac2h3o2 would have to be added : acetic acid has a Ka value of 1.8x10^-5. How many grams of NaC2H3O2 would have to be added to 100 ml of .1 M HC2H3O2 to prepare a buffer with a pH of 4.5?
Determining the profit margin : Stockholders recently voted in a new management team that has promised to lower costs and get the return on equity up to 15%. What profit margin would LeCompte need in order to achieve the 15% ROE, holding everything else constant?
Construct a bond amortization table : Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first five years. Make sure all columns and rows are properly labeled.
Propose a mechanism for the conversion of glucose : propose a mechanism for the conversion of glucose 6-phosphate into fructose 6-phosphate by phosphoglucose isomerase based on the mechanism
Intergroup conflict : Answer the above points in a 3- to 4-page paper. Your paper should be double-spaced, typed in 12-point Times New Roman font with normal one-inch margins, written in APA style, and free of typographical and grammatical errors. It should include a titl..
Volume-based system and strategic activity-based system : Prepare a table that illustrates the percentage change in costs between the volume-based system and the strategic activity-based system.
Define how many grams of lead : A 15.00 mL sample of a 0.100 M solution of lead(II) nitrate is reacted with 10.00 mL of 0.170 M sodium chloride. How many grams of lead(II)

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  The incremental annual revenues and expenses

Burwinkel Corporation is considering a project that would require an investment of $252,000 and would last for 7 years. The incremental annual revenues and expenses generated by the project during those 7 years would be as follows:

  What is the amount of depreciation expense

Pisa, Inc. uses the straight-line method to depreciate similar assets. What is the amount of depreciation expense recorded by Pisa, Inc. in the first year of the asset's life?

  Determine the market value of the clothing

You have an an inventory of women's clothes and also inventory of Hi-Tech equipment like Ipods or cell phones. You are like Walmart. You are nervous in that noone is buying certain woman's clothing in your stock and also noone is buying some of yo..

  Risk-free asset-plotting attainable portfolios

Suppose a risk-free asset has an expected return of 5%. By definition, its standard deviation is zero, and its correlation with any other assets is also zero. Using only Asset A and the risk-free asset, plot the attainable portfolios.

  Prepare the journal entry to record the sale of bonds

Ratzlaff Company issues $2.2 million, 10-year, 8% bonds at 97, with interest payable on July 1 and January 1. Prepare the journal entry to record the sale of these bonds on January 1, 2008

  What is meant by variance power

What is meant by variance power? Suppose that a charitable foundation receives a gift that the donor specifies must be used to support the college education of a particular individual. Of what relevance is variance power to how the foundation acco..

  How activities affect nicole 2011 adjusted gross income

58 Nicole, a calendar year individual, owns 30%of Creole Cravings,inc,. a C corporation that was formed on February 1,2011. She receives a $5000 monthly salary from the corporation, and Creole cravings generates $200000 of taxable income (after ac..

  Specific identification inventory valuation method

Judy's Cars, Inc. sells collectible automobiles to consumers. Judy employs the specific identification inventory valuation method.

  American opportunity scholarship credit

Jeffery and Cassie, who are married with modified AGI of $90,000, are sending their son to his first year of college. Their total tuition and related payments during 2013 amounted to $5,500.

  Possible asset impairment

Which of the following would not indicate possible asset impairment?

  Determining selling and administrative expense budget

The remainder of the fixed selling and administrative expense represents current cash flows. The cash disbursements for selling and administrative expenses on the March selling and administrative expense budget should be:

  What is the residual income

Ruger has a profit margin of 16% based on revenues of $400,000 and an investment turnover is 2. What is the residual income when the cost of capital is 10%?

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