User Account

All Pages

Assume the market rate on january

Assignment Help Accounting Basics
Reference no: EM13901034

Legacy issues $ 325,000 of 5%, four year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. They are issued at $ 292,181 and their market rate is 8% at the issue date. 

Required: 

1. Prepare the January 1, 2013, journal entry to record the bonds  issuance. 
2. Determine the total bond interest expense to be recognized over the bonds  life. 
3. Prepare a straight line amortization table like the one in Exhibit 14.7 for the bonds  first two years. 
4. Prepare the journal entries to record the first two interest payments. 
Analysis Component:
5. Assume the market rate on January 1, 2013, is 4% instead of 8%. Without providing numbers, describe how this change affects the amounts reported on Legacy s financial statements. 

Reference no: EM13901034

Questions Cloud

Use the information below to prepare a balance sheet : Use the information below to prepare a balance sheet and a cash flow statement forMr. King. Calculate his net worth and cash surplus or deficit. (All expenses are on monthly basis).
Discuss the long-term effects : 1. Problem identification (Global Warming): Clearly indicate the issue you will discuss and the influence this problem has on land, air, water resources, plant life, animal life, and human societies. Discuss the long-term effects this problem will..
How the ruling in the case impacts the lives of americans : The Supreme Court is made up of nine justices who are responsible for deciding whether or not laws are in line with the U.S. Constitution
What is the total charge on the disc : The electron density on the surface of a circular disc of radius 20 m is given as ne = 300ρ cos2 φ electrons/meter2. Determine the number of electrons residing on the surface of the disc. What is the total charge on the disc?
Assume the market rate on january : Legacy issues $ 325,000 of 5%, four year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. They are issued at $ 292,181 and their market rate is 8% at the issue date.
Calculate pcd return on sales and roi for 2014 : PCD managers are evaluated and rewarded on the basis of ROI defined as operating income divided by total assets. Barkley Industries expects its divisions to increase ROI each year.
What amount of safety stock is appropriate : The demand of the winter jacket varies over the week (7 days). The average demand per week is 50 items. Given that the retailer’s order lead time is two days, the average lead time demand is 16 items and the standard deviation during lead time is 3 i..
What descriptive words would best portray the tone : What descriptive words would best portray the tone
Kilogram of fossil carbon burned : The concentrations increased exponentially until the energy crisis in the mid-1970's rose at a rate of 1.5 ppm/year for several decades, and in the 2000s began rising at a rate of 2.0 ppm/year and higher. Every kilogram of fossil carbon burned pro..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Immaterial amount of overapplied overhead

In accounting for an immaterial amount of overapplied overhead, which of the following is part of the adjusting entry?

  Look up the financial statement of pepsicola inc in its

look up the financial statement of pepsicola inc. in its latest annual report. what 3 items of important information

  Which of the not a qualitative characteristic of useful

which of the following is not a qualitative characteristic of useful accounting information?relevance faithful

  Computing expected new net income

As a result, they estimate that gross profit will increase by $43,208 and operating expenses by $71,922. Compute the expected new net income.

  Global world inc a u s corporation has interest expense for

global world inc. a u. s. corporation has interest expense for the tax year of 200000 no portion of which is directly

  Determine the four basic financial statements explain the

write a 700- to 1050-word paper in which you do the followingidentify the four basic financial statements.describe the

  Prepare the current liabilities section of the balance

the following selected transactions were taken from the books of caledonia company for 2008. 1.on march 1 2008 borrowed

  If the window department were discontinued assuming that

data from the income statement of dray company for the current fiscal year ended on december 31st and are presented

  The working capital needed for project b will be released

wriston company has 360000 to invest. the company is trying to decide between two alternative uses of the funds. the

  What is the future value of the set of cash flows

What is the future value of the set of cash flows

  Determine the overhead cost per unit for product

Using the activity-based costing approach, determine the overhead cost per unit for each product.

  What is the purpose of internal controls

What is the purpose of internal controls? Be specific.

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