Bond liability and the related accounts

Assignment Help Accounting Basics
Reference no: EM13146769

On December 31, 2003, Sloan Corporation issued $1,000,000, 10%, 5-year bonds for $700,000. The par value of each bond is $1,000. The stated interest rate on the bond is 10% payable annually on December 31 of each year, beginning December 31, 2004. The bonds will mature 5 years from the date of issue (December 31, 2008).

(a) Provide the journal entry to record the issuance of the bonds. Show computations.

(b) Provide the journal entry that Sloan should make on December 31, 2004, assuming straight line amortization.

(c) Show how the bond liability and the related accounts will appear on the Balance Sheet of Sloan on December 31, 2004.

Reference no: EM13146769

Questions Cloud

Strengths and weaknesses of various types of accounting : Are there any differences between the organizations that adopt a particular accounting method? What are the strengths and weaknesses of the various types of accounting?
How much money will be in the retirement account in years : Savings invested with an annual interest rate of 4% How much money will be in the retirement account in 35 years?
Contract law issues if the company : What are some of the legal issues that might arise from this Haiti cruise ship situation? For example, what are some of the contract law issues if the company cancels the stop and diverts the passengers? Conversely, what are some of the neglig..
What is the interest rate in purchase transaction : What is the interest rate, to the nearest percent, used in discounting this purchase transaction?
Bond liability and the related accounts : Provide the journal entry that Sloan should make on December 31, 2004, assuming straight line amortization. Show how the bond liability and the related accounts will appear on the Balance Sheet of Sloan on December 31, 2004.
The amount of longwave radiation emitted by the earth : What factors influence the amount of longwave radiation emitted by the earth? What factors influence the amount of longwave radiation emitted by the atmosphere?
Determine short-run average variable cost and marginal cost : For a plant size equal to 150,000 kilowatts, determine the output level that minimizes short-run average variable costs. e. Determine the short-run average variable cost and marginal cost at the out- put level obtained in Part (d).
Concept of capitalized lease liability : The rounded present value of an ordinary annuity for nine years at 9% is 6.0. What amount should N report as capitalized lease liability at December 31, 2009?
What are the molality and mole fraction of solute : What are the molality and mole fraction of solute in a 36.3 percent by mass aqueous solution of formic acid (CH3OH)?

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the common stock

What is the common stock, retained earnings, cost of goods sold and net income. I have 5000 cash, 10000 inventory,45000 building,5000accounts payable.total liabitities stockholders 60000,revenues 80000 and administrative expeneses 10000

  Total interest expense associated to bonds

The Marx Company issued $100,000 of 12% bonds on April 1, 2010 at face value. The bonds pay interest semiannually on January 1 and July 1. The bonds are dated January 1, 2010, and mature on January 1, 2015. The total interest expense related to th..

  Realization of an operating income

If fixed costs are $700.000 and the unit contribution margn is $14, what amount of units must be sold in order to realize an operating income of $100.000

  Controller been effective in managing cash

Does it appear that the new controller has been effective in managing cash?

  What amount would be reported as the total payroll costs

Lightning Electronics is a midsize manufacturer of lithium batteries. The company's payroll records for the November 1-14 pay period show that employees earned wages totaling $100,000 but that employee income taxes totaling $14,000 and FICA taxes ..

  Tax-free creation of corporation

Section 351 allows the tax-free creation of a corporation, or, rather, the tax free contribution of money or property to a corporation in exchange for stock in that corporation.

  Computing depreciation expense-units-of-activity method

The truck was assigned an estimated useful life of 100,000 miles and has a residual value of $10,000. The truck was driven 18,000 miles in 2008 and 22,000 miles in 2009. Compute depreciation expense using the units-of-activity method for the years..

  Tests of transactions

As planning materiality is decreased, the auditor would most likely plan more tests of transactions to.

  Ppropriate journal entry to record purchases of shares

Prepare the appropriate journal entry to record the June purchases of shares under the employee share purchase plan.

  Capital budgeting method

Which capital budgeting method should be used when NPV and IRR give conflicting ranking? Why?

  What information would you be interested in upon reviewing

what is the basic difference between the statement of cash flows vs. all the other financial statement that you have learned to prepare?

  Recognizing the gain problem

At the formation of the BD Partnership, Betty contributes land with a basis of $10,000 and a FMV of $30,000 and Dick contributes cash of $30,000. Betty and Dick share profits and losses equally. When the land is sold two years later for $50,000, B..

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