Compute the total bond interest expense over bonds life

Assignment Help Financial Accounting
Reference no: EM13790680

Ellis issues 9.5%, five-year bonds dated January 1, 2013, with a $560,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $594,086. The annual market rate is 8% on the issue date. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided.)

1. Compute the total bond interest expense over the bonds' life.

2. Prepare an effective interest amortization table for the bonds life.

3. Prepare the journal entries to record the first two interest payments.

4. Use the market rate at issuance to compute the present value of the remaining cash flows for these bonds as of December 31, 2015. (Round table values to 4 decimal places, and use rounded values in all calculations.)

Reference no: EM13790680

Questions Cloud

What was the investigative process : For this assignment you will search YouTube for both male and female serial killers. What was the investigative process
Prepare the journal entry to record the interest payment : On January 1, 2014, Clearwater Corporation sold a $770,000, 9 percent bond issue (10 percent market rate). The bonds were dated January 1, 2014, pay interest each December 31, and mature in 6 years. Prepare the journal entry to record the interest pa..
Purpose trust fund for the principle and interest : One group wants to set up a permanent fund for the principle of the investments and use a special revenue fund to account for the earnings of the investments and their use. The other group wants to use a private purpose trust fund for the principl..
What was the investigative process : For this assignment you will search YouTube for both male and female serial killers. What was the investigative process
Compute the total bond interest expense over bonds life : Ellis issues 9.5%, five-year bonds dated January 1, 2013, with a $560,000 par value. The bonds pay interest on June 30 and December 31 and are issued at a price of $594,086. The annual market rate is 8% on the issue date.  Compute the total bond inte..
Compare ways in which the concepts of god : Compare ways in which the concepts of "God," "Person," "Environment," "Health," and "Nursing" would be defined according to Colossians 1.
What information is recorded on a job cost sheet : Explain how business activities and inventories for a manufacturing company, merchandising company, and a service company differ. What information is recorded on a job cost sheet? How do manargement adn employees se job cost sheet?
What point does person agree to assist in murdering victims : At what point does a person agree to assist in murdering victims? Is there a criminological theory that would best explain this behavior
Part of the manufacturing overhead of a chemical plant : All of the following statements regarding management accounting's role in assigning decision-making authority are true except: Which of the following costs would not be considered part of the manufacturing overhead of a chemical plant? Refer to the i..

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is an inadvertent termination of an s election

What is an inadvertent termination of an S election? How does an S corporation and its shareholders rectify an inadvertent termination? What could happen if a company fails to rectify the termination?

  Define the term opportunity cost

Lower labor costs in China and other parts of the world can be a strategic advantage for a US firms such as Apple. Define the term opportunity Cost? What may be the impact of greatly lower labor costs on opportunity costs for Apple?

  Abc company stock has a required return of 12 and the stock

abc company stock has a required return of 12 and the stock sells for 40 per share. the firm just paid a dividend of

  Discuss significant differences between ifrs and gaap

Discuss significant differences between IFRS and GAAP. Identify which you prefer and state why. The convergence process is likely to lead to the acceptance of the IFRS approach. Explain whether or not you agree with this decision.

  Illustrate what is the net sales amount for the period

A company has sales of $1,500,000, sales discounts of $102,000, sales returns and allowances of $123,000, shipping charges of $15,000, sales commissions of $34,000, net income totaled $263,500, and cost of goods sold of $420,000. Illustrate what i..

  What are the behavioral implications of the way cadence

How does the budgeting process Cadence and Cross used at ATC differ from recommended practice? What are the behavioral implications of the way Cadence and Cross went about preparing the master budget?

  What advice would you give john regarding this transaction

Roth IRA's are popular deferred compensation plans because they offer tax- free distributions. As a tax preparer or CPA, you will have clients who turn to you for retirement advice. You need to know how to conduct the necessary research to give your ..

  Payment of cash dividends are recorded

Payment of cash dividends are recorded as a decrease in cash and an increase in expenses a decrease in cash and a decrease in retained earnings an increase in dividend expense and a decrease in cash a decrease in cash and a decrease in..

  Prepare a statement of cash flows for the first year

Prepare a statement of cash flows for the first year, using the direct method in the operating activities section and Did the company generate more or less cash flow from operations than it earned in net income

  What amount will be reported in estimated warranty liability

What amount will be reported in the Estimated Warranty Liability account on the December 31, 2011 balance sheet?

  Company purchased as a short-term investment

On January 1, Talent Company purchased as a short-term investment a $1,000, 8% bond for $1,050. The bond pays interest on January 1 and July 1. The bond is sold on October 1 for $1,200 plus accrued interest. Interest has not been accrued since the la..

  Legal issues and develop solutions for those issues

Discuss the impact of technology on business and effective communication techniques and recognize situations that present potential ethical and legal issues and develop solutions for those issues.

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