Issuance of the bonds and bond interest

Assignment Help Accounting Basics
Reference no: EM13147536

Elkins Company sold $2,500,000, 8%, 10-year bonds on July 1, 2011.The bonds were dated July 1, 2011, and pay interest July 1 and January 1. Elkins Company uses the straight-line method to amortize bond premium or discount. Assume no interest is accrued on June 30.

Instructions:

(a) Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2011, assuming that the bonds sold at 104.

(b) Prepare journal entries as in part (a) assuming that the bonds sold at 98.

(c) Show balance sheet presentation for each bond issue at December 31, 2011.

Reference no: EM13147536

Questions Cloud

What mass of glucose would give the same result : What mass of CaCl2 , when dissolved in 100.00 g of water, gives an expected freezing point of 5.0°C; CaCl2 is ionic? What mass of glucose would give the same result?
Can the marginal utility from a product be negative : Use your own example in order to illustrate these concepts. Can the marginal utility from a product be negative? If yes, give an example.
Which of the is an example of a heterozygous genotype : Which of the following is an example of a heterozygous genotype?
Statements regarding a horizontal analysis : All the following statements regarding a horizontal analysis are true EXCEPT:
Issuance of the bonds and bond interest : Prepare all the necessary journal entries to record the issuance of the bonds and bond interest expense for 2011, assuming that the bonds sold at 104.
Calculate the molar mass of pyrene : A compound called pyrene has the empirical formula C8H5 . When 4.04 g of pyrene is dissolved in 10.00 g of benzene, the boiling point of the solution is 85.1°C.
Determine the best point estimate of the mean : The standard deviation is 4. what is the best point estimate of the mean? find the 95% confidence interval of the mean score for golfers.
Limits to amending a company constitution : what are the limits to amending a company constitution?
What equivalent annual interest rate is second contractor : A nominal rate of 14% should be used as the MARR. What equivalent annual interest rate is the second contractor offering? Which contractor’s offer would you accept? Repeat the analysis with the NPV technique.

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the full cost of the globe

Assume that the quantity demanded at the price calculated in part a is only 600 units. What is the full cost of the globe, and what is the price with a 25 percent markup?

  Select an initial public offering

Select an Initial Public Offering (or a Secondary Offering) completed in the last 10 years in U.S. capital markets, and discuss and analyze this IPO in 7-8 pages, double-spaced.

  What amount of interest income

What amount of interest income should be included in Moor's 2011 income statement (the second year of the contract)?

  Determining partnership interest

At the end of the year, Marianne's share of partnership liabilities decreased by $30,000. Assuming loss limitation rules do not apply, Marianne's basis in the partnership interest at the end of the year is:

  Fixed asset depreciation-cisco and funseth farms examples

Funseth Farms, purchased a tractor in 2008 at a cost of $30,000. The tractor was sold for $3,000 in 2011. Depreciation recorded through the disposal date totaled $26,000.

  Problem related to distribution deduction

During the year the trust makes a mandatory distribution to Julius and Steve of $50,000 each. The distribution deduction is:

  Developing standards for products

Harnish Corporation is developing standards for its products. One product requires an input that is purchased for $55.00 per kilogram from the supplier. By paying cash, the company gets a discount of 8% off this purchase price.

  Computing the recognized gain

On April 1, 2004, Norcross Corporation purchased a new machine for $550,000. At the time of acquisition, the machine was estimated to have a useful life of ten years and an estimated salvage value of $25,000.

  Character of foreaker gain

Foreaker LLC sold a piece of land that it uses in its business for $52,000. Foreaker bought the land two years ago for $42,500. What is the character of Foreaker's gain?

  Analyze the impact to cpas

Analyze the impact to CPAs who practice within a very litigious environment in the U.S. Suggest what you believe to be the most effective way for CPAs to protect themselves from liability.

  Assumptions behind transactions and full journal entries

Explain to him the rules of debits and credits for the balance sheet and income statement - journal entry that would be recorded that impacts the balance sheet.

  Asset and liability allocation

If a devious company wanted to get the highest possible near-term earnings after acquisition, which asset and liability allocation would be maximized and minimized and why?

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