Which of the following is correct journal entry to record

Assignment Help Accounting Basics
Reference no: EM13135082

1. On November 1, 2015, Archangel Services issued $200,000 of 10-year bonds with a stated rate of 3%. The bonds were sold at discount for $191,000, and make semiannual payments on April 30 and October 31. At December 31, 2015, Archangel made an adjusting entry to accrue interest at year-end. How much interest expense is recorded at December 31, 2015?
2.On January 1, 2013, Davie Services issued $20,000 of 8% bonds that mature in five years. They were sold at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On June 30, 2013, how much are the total interest payments made to bondholders?
3. On January 1, 2014, Partridge Company issued $50,000 of 6-year bonds with a stated rate of 3%. The market rate at time of issue was 4%, so the bonds were discounted and sold for $47,331. Partridge uses the effective-interest rate of amortization for bond discount. Semiannual interest payments are made on June 30 and December 31 of each year. Which of the following is the correct journal entry to record the first interest payment? (Please round all amounts to the nearest whole dollar.)

Reference no: EM13135082

Questions Cloud

Difference between average total cost and variable cost : What is the difference between average total cost and average variable cost
Preparing financial statements : West County Bank agrees to lend Drake Builders Company $100,000 on January 1. Drake Builders Company signs a $100,000, 6%, 6-month note. What is the adjusting entry required if Drake Builders Company prepares financial statements on March 30?
Define aeroplane dynamics : Aeroplane Dynamics, Determine the steady thrust that would enable a 200-tonne airliner to reach its take-off speed (75 m sâ?'1), from rest, in 30 s
What volume of n2o3 will be produced : At a certain temperature and pressure 1.4 L of N2 reacts with 2.1 L of O2. If all the N2 and O2 are consumed, what volume of N2O3, at the same temperature and pressure, will be produced?
Which of the following is correct journal entry to record : On January 1, 2013, Davie Services issued $20,000 of 8% bonds that mature in five years. They were sold at par. The bonds pay semiannual interest payments on June 30 and December 31 of each year. On June 30, 2013, how much are the total interest p..
Determining washer method : Use the washer method to find the volume of the solid of revolution formed by revolving the region bounded by f (x)= 3x^2 and g (x)=2x+1 about the x-axis.
Explain how legal codes and economicforces achieving rights : Explain how legal codes and economic forces conspired to prevent slaves, peasants, and workers from achieving rights as men and citizens.
What is annual payment sam must make to pay back his friend : Sam's friend would like to be reimbursed for the time value of money at a 10% annual rate. What is the annual payment Sam must make to pay back his friend?
Determining latin squares : Show that for n less than or equal to 4, any Latin square of order n can be obtained from the multiplication table of a group by permuting rows, columns, and symbols.

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  What kind of entity fits the boys and why

Your new client seeks your advice on setting up a new business. They do not know which form of entity they should establish and want your opinion. The facts are that the new client is composed of 2 best friends Sam and Pete seeking to operate a ic..

  What are the gift tax consequences of an irrevocable

What are the gift tax consequences of an irrevocable transfer of $10,000,000 in trust to grantor's son for life, with all income payable to son, then remainder to charity on son's death? Grantor makes no other transfers that year, and grantor is n..

  Debited to construction expenditure

In late June, the Everest Construction Co. submitted a progress billing on a construction contract for $500,000. On July 2, the bill was approved for payment, subject to a five percent retention, as provided by the contract. The amount that should..

  Problem related to advantageous tax-wise

Joe has asked you to help him decide which of these potential contributions will be most advantageous tax-wise. Jay's taxable income is $3.5 million before considering the contribution. Rank the four alternatives and communicate your advice to Joe..

  Explain companies are required to report earnings

Publicly traded companies are required to report earnings per share data on the face of the income statement. compare and contrast basic earnings per share with diluted earnings per share for each of the following:

  Compute the ending inventories under the dollar value

compute the ending inventories under the dollar value lifo method for 2011, 2012, 2013. the base period is January 1, 2011, and the beginning inventory cost at the date was $45,000. compute indexes to two decimal places.

  Computing population growth

Pick a country of your choice that is experiencing population growth.(I picked Mexico City,Mexico;18,131,000 in 2007, r is 1.7% expected to double in 40 years (0.69/0.017=40.6) pop. growth rate 1.142%(2008 est) find the most recent population coun..

  Poor operating income performance

The following product line information is for the Swiss Watch Company. The company is considering dropping its Children's product line due to poor operating income performance. Fixed expenses are allocated to each product line based on sales reven..

  Determining capital structure: repurchase of stock

The Tivoli Company has no debt outstanding, and its financial position is given by the following data: What would the value of the firm be after this debt-for-stock restructuring of the firm is completed? What would be the price of Tivoli's stock aft..

  What characteristics will automatically exclude an item

What characteristics will automatically exclude an item from being classified as inventory?

  Analyze four eras of business

Examine the four eras of business and make a prediction for what the next era will be like. Explain the rationale behind your prediction.

  Explain accounts receivable turnover

Selected balances from a company's financial statements are shown below. Calculate the following (a) accounts receivable turnover (b) inventory turnover (c) days' sales uncollected

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