How much interest expense will be recognized in 2012

Assignment Help Accounting Basics
Reference no: EM13128756

A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109. Using effective-interest amortization, how much interest expense will be recognized in 2012?

Reference no: EM13128756

Questions Cloud

Elucidate the evidence produced by the performance : Elucidate the evidence produced by the performance of procedures and decide whether management's assertions conform to generally accepted accounting principles and reality
Probability that area receives at least inches of rain : A mean of 25 inches and a standard deviation of 5 inches. What is the probability that the area receives at least 30 inches of rain in a year?
Modernism : Provide a description of Modernism; then provide an explanation of the characteristics of Modernism. Be sure to touch on social, political, historical or cultural issues that influenced Modernism.
How many grams of caffeine are present in one cup : How many grams of caffeine (C8H10N4O2) are present in one cup of coffee that contains 8.98 × 1021 caffeine molecules?
How much interest expense will be recognized in 2012 : A company issues $15,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $14,703,109. Using effective-interest amortization, how much interest expense will be re..
What is betty gross estate : Betty dies on February 20 of the current year. Her estate consisted of the following assets, all valued as of her date of death:
Maximal interval of dynamical system : Find the maximal interval of existence. Find the dynamical system defined by the solutions
Explain spectroscopic or chemical tests : Describe spectroscopic or chemical tests to distinguish between the following pairs of compounds
How many moles of koh were in the sample : Using the following reaction: OH- + HC2H3O2 ---> H2O + C2H3O2- a 75.0 mL sample of potassium hydroxide, KOH, of unknown concentration is titrated with 42.5 mL of 0.575 M acetic acid.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Property in complete liquidation

In the current year, Orion Corporation (E & P of $2 million) distributes all of its property in complete liquidation. Allie, a shareholder, receives land having a market value of $300,000.

  Compute the total amount of dividends

Compute the total amount of dividends that was paid to each class of stock, b) Compute the amount of dividends per share for each class of stock.

  Prepare journal entries for forward contract and firm

The company has an incremental borrowing rate of 12%. It must close its books and prepare third-quarter financial statements on September 30, 2010. Prepare journal entries for the forward contract and firm commitment.

  Equation of profit and loss

A company grosses $100 million per year and shows a 12 percent profit. It hires a security director, a security staff, and security equipment, which costs the company $2 million per year but reduces its losses, or "shrinkage," from 9 percent to 5 ..

  Traditional income statement

Would a traditional income statement differ depending on whether the business is a service organization, merchandiser, or manufacturer?

  Ratios for the two types of inventories

Discuss some possible reasons for differences between these ratios for the two types of inventories. Round answers to one decimal place.

  How they should finance the wedding

Mary and Bob have been married for 25 years. They are both college professors. Mary makes $65,000 annually and Bob makes $75,000 annually.

  Noncash financing and investing activities

The accounting principle that requires important noncash financing and investing activities be reported on the statement of cash flows or in a footnote is the:

  Describe two limitations of income statements

However, income statements do not reveal every aspect of a company's performance. Identify and describe two limitations of income statements.

  Prepare the partnership income statement for the year

Revenues for the year ended 31 January 20X1 were $507,000 and expenses were $330,000. Under plan (b) above prepare the partnership income statement for the year.

  Determine net carrying value of the bond liability

On June 1, 2001, Janson Bottle Company sold $500,000 in long-term bonds for $428,800. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10% (use the 10%).

  What are internal controls

Explain some common internal controls that a company might have in place. What are they designed to protect? What are the reporting requirements regarding internal controls in the Sarbanes-Oxley Act?

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