Reference no: EM132495238
On January 1, Year 1, the Diamond Association issued bonds with a face value of $300,000, a stated rate of interest of 6 percent, and a 10-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 7 percent at the time the bonds were issued. The bonds sold for $278,932. Diamond used the effective interest rate method to amortize the bond discount.
Required
Question a. Determine the amount of the discount on the day of issue.
Question b. Determine the amount of interest expense recognized on December 31, Year 1. (Round your answer to the nearest dollar amount.)
Question c. Determine the carrying value of the bond liability on December 31, Year 1. (Round your answer to the nearest dollar amount.)
Question d. Provide the general journal entry necessary to record the December 31, Year 1, interest expense. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to the nearest dollar amount.)
|
What are the main concerns when collecting evidence
: What are the main concerns when collecting evidence? What precautions are necessary to preserve evidence state? How do you ensure evidence remains.
|
|
Find journal entry necessary to recognize interest expense
: Assuming Residence uses the effective interest rate method, Find the journal entry necessary to recognize interest expense on the December 31, Year 1 is
|
|
What the carrying value of the bond liability on january
: Assuming Residence uses the effective interest rate method, the carrying value of the bond liability on January 1, Year 1 is (round any necessary computations)
|
|
Improving reading proficiency
: Educational economists are trying to determine whether preschool head-start programs are beneficial in improving reading proficiency.
|
|
Determine the amount of the discount on the day of issue
: Determine the amount of interest expense recognized on December 31, Year 1. (Round your answer to the nearest dollar amount.)
|
|
What is the margin of error
: If the sample size is 8, the sample mean is 22, and the sample standard deviation s is 6.3, what is the margin of error?
|
|
What the amount of the cash flow from operating activities
: If a company uses the effective interest rate method, What the amount of the cash flow from operating activities will be? the same as it would have been had
|
|
COSC2670 Practical Data Science with Python Assignment
: COSC2670/2738 Practical Data Science with Python Assignment Help and Solution - RMIT University, Australia. Task 1 - Data Preparation
|
|
Competing hypotheses and accompanying sample data
: Consider the following competing hypotheses and accompanying sample data. (You may find it useful to reference the appropriate table: z table or t table)
|