How much interest expense will be recognized in 2012

Assignment Help Accounting Basics
Reference no: EM13128756

A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109. Using effective-interest amortization, how much interest expense will be recognized in 2012?

Reference no: EM13128756

Questions Cloud

Elucidate the evidence produced by the performance : Elucidate the evidence produced by the performance of procedures and decide whether management's assertions conform to generally accepted accounting principles and reality
Probability that area receives at least inches of rain : A mean of 25 inches and a standard deviation of 5 inches. What is the probability that the area receives at least 30 inches of rain in a year?
Modernism : Provide a description of Modernism; then provide an explanation of the characteristics of Modernism. Be sure to touch on social, political, historical or cultural issues that influenced Modernism.
How many grams of caffeine are present in one cup : How many grams of caffeine (C8H10N4O2) are present in one cup of coffee that contains 8.98 × 1021 caffeine molecules?
How much interest expense will be recognized in 2012 : A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109. Using effective-interest amortization, how much interest expense will be re..
What is betty gross estate : Betty dies on February 20 of the current year. Her estate consisted of the following assets, all valued as of her date of death:
Maximal interval of dynamical system : Find the maximal interval of existence. Find the dynamical system defined by the solutions
Explain spectroscopic or chemical tests : Describe spectroscopic or chemical tests to distinguish between the following pairs of compounds
How many moles of koh were in the sample : Using the following reaction: OH- + HC2H3O2 ---> H2O + C2H3O2- a 75.0 mL sample of potassium hydroxide, KOH, of unknown concentration is titrated with 42.5 mL of 0.575 M acetic acid.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What abc systems would be helpful to guide

Assuming that Seneca starts to supply new customers-large discounters and supermarkets outisde its local region-what ABC systems would be helpful to guide the profitability of the strategy and assist Seneca managers in making decisions?

  Direct materials quantity variance

The following data relate to direct materials costs for November: Actual costs 4,600 pounds at $5.50  Standard costs 4,500 pounds at $6.00 What is the direct materials quantity variance?

  Calculate the breakeven point for the company

Under the new method sales would increase by 15 percent each month, and net income would increase by one third. Fixed cost could be slashed to only $15,000 per month. Calculate the breakeven point for the company before and after the change in mar..

  Method to amortize bond premium of discount

On june 30, 2012, mackes company issued 5,000,000 face value of 13%, 20 year bonds at $5,376,150, a yield of 12%. Mackes uses the effective-interest method to amortize bond premium of discount. the bonds pay semiannual interest on june 30 and dece..

  Relationship between tax base and tax rate

What is the relationship between tax base and tax rate in determining the revenue collected by the government? Give an example of how a particular tax would fit into the various components of the equation.

  Differences between tax and accounting income

Woody Corp. had taxable income of $8,000 in the current year. The amount of MACRS depreciation was $3,000 while the amount of depreciation reported in the income statement was $1,000. Assuming no other differences between tax and accounting income..

  Finished-goods inventory cost

What would be Altoona's finished-goods inventory cost on Dec 31 under the variable costing method?

  Current excess foreign tax credit position

What measures should Tucson consider if it expects its current excess foreign tax credit position to persist in the long-run?

  Computation of unit costs

Compute the unit cost for each department. Compute the total unit cost for the Milo Company order. The selling price for this order was $14 per unit. Was the selling price adequate? Compute the prime costs and conversion costs per unit for each depa..

  What adjusting journal entry must be made to recognize

Rey uses the method prescribed in Part 1b, what adjusting journal entry must be made to recognize bad debts expense on June 30, 2012? (Round your intermediate calculation to the nearest dollar amount. Omit the "tiny_mce_markerquot; sign in your re..

  Basics consolidated statements

If the patent is to be written off over a 10-year period, at what amount should it be reported on consolidated statements at December 31, 2012?

  What should be the overall effect on the company monthly

The marketing manager believes that a $12,000 increase in the monthly advertising budget would result in a 160 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

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