Record the journal entries for the issuance of the bonds

Assignment Help Financial Accounting
Reference no: EM131202158

On July 1, 2016 Alpha Company sells $1,000,000 face value of 10% five year bonds which call for semiannual interest payments. The bonds are dated April 1, 2016 so these bonds are issued between interest dates. The market rate at the date of issue is also 10%. For simplicity, use a 360-day year and 3 day months for all calculations.

Record the journal entries for the issuance of the bonds

Record the journal entries for the first interest payment due on October 1, 2016. Assume that interest has not been accrued at each month end.

Reference no: EM131202158

Questions Cloud

Developed schedule of future taxable and deductible amounts : Nadal Inc. has two temporary differences at the end of 2006. The first difference stems from installment sales, and the second one results from the accrual of a loss contingency. Nadal's accounting department has developed a schedule of future taxabl..
Prepare journal entries to record each of the transactions : Tristar Production Company began operations on September 1, 2013. Listed below are a number of transactions that occurred during its first four months of operations. On September 15, a truck was donated to the corporation. Similar trucks were selling..
Calculate contribution margin and operating income : Patel Manufacturing sold 200,000 units of its product for $30 per unit in 2008. Variable cost per unit is $25 and total fixed costs are 800,000. Calculate (a) contribution margin and (b) operating income.
Measures from the internal process perspective : Which of the following measures from the internal process perspective would most likely be a driver of customer retention in the customer perspective of a retails store balanced scorecard
Record the journal entries for the issuance of the bonds : On July 1, 2016 Alpha Company sells $1,000,000 face value of 10% five year bonds which call for semiannual interest payments. The bonds are dated April 1, 2016 so these bonds are issued between interest dates. The market rate at the date of issue is ..
Use your tax accounting knowledge : If you could answer this tax accounting question perfectly that will be awesome. Please read the whole document carefully and use your tax accounting knowledge to answer it. Eta Corporation approaches Lily White, the CEO and sole shareholder of MuCo,..
Trustees of local church to review its accounting procedures : You have been asked by the board of trustees of a local church to review its accounting procedures. As part of this review you have prepared the following comments relating to the collections made at weekly services and record keeping for members' pl..
Portion of a definition : For each term in the first column, find the closest definition (or portion of a definition) in the second column. Each definition may be used only once or not at all. Definition (or Portion) A control established to remedy misstatements that are disc..
Primary objective is to increase shareholders wealth : Most of the discussion on climate change until now has been on the moral and political aspects of the issue. However, climate change is becoming an important issue for the corporate world too. What is your opinion? If you were CFO of a major corporat..

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Calculate boehms total dividends for 2014

Calculate Boehms total dividends for 2014 - It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy.

  Cost of ending inventory using weighted-average

Frick Company began the accounting period with inventory of 3,000 units at $30 each. During the period, the company purchased an additional 5,000 units at $36 each and sold 4,600 units. Assume the use of periodic inventory procedure. The cost of endi..

  Process-costing system-single direct-cost category

Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The process-costing system at Larsen Company has a single direct-cost category. What issues should the manager focus on ..

  Question 1big problem ltd an oil refining business uses an

question 1big problem ltd. an oil refining business uses an allowance system to account for bad debts. at the

  Prepare the reconciliation necessary to convert

Prepare the reconciliation necessary to convert from the fund balance reported in the governmental funds Balance Sheet to the net assets in the government-wide Statement of Net Assets.

  1using the fasb codification login information provided

1.using the fasb codification login information provided research the following. for each identify the topic subtopic

  The face value of the note is the one listed

A 60-day, 10% note for $7,200, dated April 15 is received from a customer on account. The face value of the note is the one listed below.

  Explain how the perpetual and periodic inventory systems

Explain how the perpetual and periodic inventory systems differ, especially in determining Cost of Goods Sold and Ending Inventory and how can the choice of the inventory costing method impact reported profits?

  Evaluate kimm''s total standard cost per unit

Kimm Company has gathered the subsequent information about its product - Evaluate Kimm's total standard cost per unit.

  What is the companys cost of common equity

What is the company's cost of common equity if all of its equity comes from retained earnings? If the company issued new stock, it would incur a 8.5% floatation cost. What would be the cost of equity from new stock?

  Compare longterm tax benefits of each type of reorganization

Compare the long-term tax benefits and advantages of each type of reorganization, and recommend the type of reorganization that will be most beneficial to the client.

  Should management accept this new project

Management is considering a project with sales of $100,000, variable expenses of $60,000, fixed costs of $40,000; and an asset investment of $150,000. Should management accept this new project?

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