User Account

All Pages

Record the redemption of the bonds assuming that interest

Assignment Help Accounting Basics
Reference no: EM131130654

1. Mueller Co. sold $800,000, 9%, 10-year bonds on January 1, 2010. The bonds were dated January 1, and interest is paid on January 1 and July 1.The bonds were sold at 105.

Instructions

(a) Prepare the journal entry to record the issuance of the bonds on January 1, 2010.

(b) At December 31, 2010, the balance in the Premium on Bonds Payable account is $36,000.
Show the balance sheet presentation of accrued interest and the bond liability at December 31, 2010.

(c) On January 1, 2012, when the carrying value of the bonds was $832,000, the company redeemed the bonds at 105. Record the redemption of the bonds assuming that interest for the period has already been paid.

Reference no: EM131130654

Questions Cloud

Find the elasticity of supply and is it elastic or inelastic : Calculate the elasticity of supply. Is it elastic or inelastic? How many deliveries will Really Annoying have at a price of $11.00? Hint: you can only sell what customers will buy.
The value of debt and equity after the restructuring : Firm ABC is financed with equity (market value $400 million) and perpetual debt (market value $1,000 million). The firm has decided that the current level of leverage is not optimal and wants to reach a debt-equity ratio of 0.6. Determine the amount ..
Why is depreciation as well as amortization and depletion : Why is depreciation (as well as amortization and depletion) considered a noncash charge?
How might the presence of gender bias in promotions impact : What reasons should the assistant chief convey to the fire chief to justify the absence of gender bias in the most recent class of firefighters who were promoted?
Record the redemption of the bonds assuming that interest : On January 1, 2012, when the carrying value of the bonds was $832,000, the company redeemed the bonds at 105. Record the redemption of the bonds assuming that interest for the period has already been paid.
System composed of two subsystems placed in series : (a) Let N(t) be the number of system failures in the interval [0,t]. In what case(s) will the stochastic process {N(t),t ≥ 0} be a renewal process if the random variables Sk do not all have an exponential distribution? Justify.
Annual expense ratio is netted out of the funds return : You purchased 5,400 shares in the New Pacific Growth Fund on January 2, 2010, at an offering price of $63.90 per share. The front-end load for this fund is 5 percent, and the back-end load for redemptions within one year is 2 percent. Assume that the..
Calculate the renewal function : Suppose that {N(t), t ≥ 0} is a renewal process for which the time τ between two consecutive renewals is a continuous random variable such that
What tax savings will result : If the firm purchases the grinders before year end, what depreciation expense will it be able to claim this year? if the firm reduces its reported income by the amount of the depreciation expense calculated in part a, what tax savings will result?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Complete the installment payments schedule for two years

Complete the installment payments schedule for the first 2 years. (Round answers to 0 decimal places, e.g. 125. Use rounded amounts for future calculations.

  What impact might this have on gross margins

What is the difference between the auditor's approach in verifying sales returns and allowances and sales? Why is there a difference?

  Analysis phase of the sdlc

Prepare an agenda for a meeting at which you would present the findings of the analysis phase of the SDLC to Bob Mellankamp concerning his request for a new inventory control system. Concentrate on which topics to cover, not the content of each to..

  What are the proceeds from the bond issue

Downing Company issues $5,000,000, 6%, 5-year bonds dated January 1, 2010 on January 1, 2010. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue?

  Hardly a day goes by without an article appearing on the

hardly a day goes by without an article appearing on the crises affecting many of our financial institutions in the

  Assuming that total dividends declared in 2012 were 35000

toggles fishing fleet had 20000 shares of 5 20 par value preferred stock and 15000 shares of 25 par value common stock

  Te controllers bonus is based upon next income it is the

the controller of sagehen enterprises believes that the company should switch from the lifo method to the fifo method.

  You are the beneficiary of a trust fund established by your

you are the beneficiary of a trust fund established by your aunt. your aunt has given you two options to choose from

  Estimated depreciation expense for an asset

A company receives a 10%, 90-day note for $1,500. The total interest due upon the maturity date is:

  You are a management analyst for xyz aircraft manufacturing

you are a management analyst for xyz aircraft manufacturing company. your company currently manufactures and sells four

  Define the parameters and variables

Define the parameters and variables and write the equation for the following scenario to optimize the profit:

  Profitability ratios low carb diet supplement inc has two

profitability ratios low carb diet supplement inc. has two divisions. division a has a profit of 100000 on sales of

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd