Find out the price of the bonds at january

Assignment Help Financial Accounting
Reference no: EM13129995

On January 1, 2011, NFB Visual Aids issued $800,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2011, the fair value of the bonds was $668,000 as determined by their market value in the over-the-counter market.

Required:

1 Determine the price of the bonds at January 1, 2011, and prepare the journal entry to record their issuance.

2 Prepare the journal entry to record interest on June 30, 2011 (the first interest payment).

3 Prepare the journal entry to record interest on December 31, 2011 (the second interest payment).

4 Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2011, balance sheet.

Reference no: EM13129995

Questions Cloud

Explain organic products is formed when methylcyclopentanol : What organic product(s) is formed when 1-methylcyclopentanol is heated in the presence of an acid catalyst?
Revision strategy : word short essay, address the following questions: When considering the whole essay in revision, how do you understand FACT? What is your definition of each of the letters of this revision strategy?
Determine limiting reactant, theoretical yield of aspirin : a student begins with 5.00 mL of acetic anhydride and 2.08 g of salicylic acid. Once the reaction is complete, the student collects 2.01 g of aspirin
What is the period that government -paid interest runs : On April 3, 2008, Mark filed his 2007 income tax return, which showed a tax due of $80000. On June 1, 2010, he filed an amended return for 2007 that showed an additional tax of $10000. Mark paid the additional amount. On May 18, 2011, Mark filed a..
Find out the price of the bonds at january : On December 31, 2011, the fair value of the bonds was $668,000 as determined by their market value in the over-the-counter market. Find out the price of the bonds at January 1, 2011, and prepare the journal entry to record their issuance.
How to study for an exam : In this assignment you will write a process analysis essay. You will explain step-by-step how something works, is done or is made. Select from the list of suggestions below.
How much water in liters could be vaporized : If this energy were used to vaporize water at 100 degrees C, how much water in liters could be vaporized? (Assume that the density of water is 1.0 g/mL.)
State income taxes of gross earnings : Selected data from a February payroll register for Gerfield Company are presented below. Some amounts are intentionally omitted. FICA taxes are 8%. State income taxes are 3% of gross earnings.
Ozonolysis from unknown compound : Ozonolysis from unknown compound, A compound, A, c6h8, yields a single organic product, B, upon ozonolysis and absorbs two moles of hydrogen on catalytic hydrogenation to give C.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Impact on net income due to changes in prices

Impact on Net Income due to changes in prices - If the plugs are purchased and the facility rented, Mennekes Company wishes to realize $100,000 in savings annually.  To achieve this goal, what must be the minimum annual rent on the facility?

  Purpose a master budgeted income statement

Purpose a Master (Static) Budgeted Income Statement using variable costing

  Calculate the average manufacturing cost of each sewing

Compute the cost allocation rate for each activity. Calculate the average manufacturing cost of each sewing machine assuming direct Materials are $175 per machine.

  Enterprise that holds a variable interest

variable interest in variable interest entity is required to consolidate assets, liabilities, revenues and expenses, and the non-controlling interest of that entity if:

  Evaluate the balance sheets

Calculation of cash and cash equivalents and Compute the balance sheets are provided for Victor Foods

  Evaluate the company''s breakeven point

Calculation of unit sales volume where income equals costs - Evaluate the company's breakeven point, i.e., at what unit sales volume would income equal costs?

  Evaluate ending inventory and cost of goods sold

Evaluate ending inventory and cost of goods sold under each method, and then compare results.

  Low-volume product under activity-based costing

Describe why overhead cost shifted from the high-volume product to the low-volume product under activity-based costing.

  Question based on revenue recognition principle

Theory question based on revenue recognition principle - Why do the two revenue recognition policies differ?

  Find the net cash flow provided by operating activities

Finding the Net cash flow provided by operating activities

  Purpose a classified balance sheet for simon company

Purpose a classified balance sheet for Simon Company at December 31, 2006 - prepare a classified balance sheet for Simon Company at December 31, 2006.

  Examine the factors involved in translating the statements

Examine the factors involved in translating the statements of a foreign entity operating in a highly inflationary economy and determine which single factor carries the most weight. Explain your rationale.

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