Issued the bonds on january

Assignment Help Accounting Basics
Reference no: EM13922044

Lewis Co. issued $250,000 of 10 year, 6 percent, callable bonds on January 1, 2013, with interest payable annually on December 31. The bonds were issued at their face amount. The bonds are callable at 101 ½. The fiscal year of the corporation is the calendar year. 

Required: 

a. Show the effect of the following events on the financial statements by recording the appropriate amounts in a horizontal statements model like the following one. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA). Use NA if an element was not affected by the event.
(1) Issued the bonds on January 1, 2013. 
(2) Paid interest due to bondholders on December 31, 2013. 
(3) On January 1, 2017, Lewis Co. called the bonds. Assume that all interim entries were correctly recorded.

847_264-B-A-L (2906).png

b. Prepare journal entries for the three events listed in Requirement a. 

Reference no: EM13922044

Questions Cloud

What is the purpose of the system unit : 1. What is the purpose of the system unit? 2. List and define the primary components of the motherboard. 3. List and define the primary subunits of the CPU.
Dividends per share are expected to grow indefinitely : XYZ company dividends per share are expected to grow indefinitely by 3% a year. Next year's dividend is $4.50 and the required rate of return (i.e. equity holder's opportunity cost of capital) is 8%. Assuming this is the best information available re..
Parent company in foreign investment analysis are cash flows : Foreign government have certain motivations to restrict the repatriation of earnings of multinational firms to the parent company. This implies that not all earnings and profits generated at the subsidary can be used by the parent company to pay divi..
Weighted average cost of capital and cost of debt : Fuhs Pastries, Inc has 12% annual coupon bonds outstanding with 11 years remaining until maturity. The current price fo the bonds are $1,329. What is Fuhs' cost of debt? What is Paccione's Weighted Average Cost of Capital?
Issued the bonds on january : Show the effect of the following events on the financial statements by recording the appropriate amounts in a horizontal statements model like the following one.
Considering the different lives of the projects : The company is choosing between machine A and B (they are mutually exclusive and the company can only pick one). The initial cost of machine A is $400,000 and it will last for 7 years before it needs to be replaced. Calculate the 7 year and 5 year an..
Discuss some of the common uses of jq tests : Discuss some of the common uses of JQ tests. Do you think that IQ tests should be used for these purposes? Does the Flynn effect alter your thoughts about the uses of IQ tests? Explain
Interest rate futures contract that has an initial margin : You purchase an interest rate futures contract that has an initial margin requirement of 12% and a futures price of $152,140. The contract has a $125,000 underlying par value bond. If the futures price falls to $145,500, you will experience a ______ ..
Construct incremental analysis : Suppose you need to decide whether to keep a machine or replace it with a new one: Old machine: Old machine can operate for 5 years with operating cost of $120,000 per year. Construct incremental analysis and conclude which alternative is more econom..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Assume that the company uses absorption costing compute the

shastri bicycle of bombay india produces an inexpensive yet rugged bicycle for use on the citys crowded streets that it

  Complete the two columns of the table of peterson furniture

Complete the two columns of the table and then compute the amount that should be reported for the ending inventory using the LCM rule applied to each item. Prepare the journal entry that Peterson Furniture Designs would record on December 31 to write..

  If the variable cost per unit increases by 1 spending on

if the variable cost per unit increases by 1 spending on advertising increases by 1500 and unit sales increase by 250

  Prepare a perpetual inventory record

Prepare a perpetual inventory record, using the FIFO inventory costing method, and determine the company's cost of goods sold, ending merchandise inventory, and gross profit - Preparing a single-step income statement

  How do you think lesley chomski should respond after the

lesley chomski is the supervisor of the new product division of mco corporation. her annual bonus is based on the

  What is a whistleblower could betty vinson have been a

1983 in clinton miss. as long distance discount services inc. ldds. formed to take advantage of the business

  How much would the crow manufacturings total income from

assume that a transfer price of 110 has been established and that 40000 units of materials are transferred with no

  Contribution margin ratio

Gerber Company is planning to sell 200,000 units for $2.00 a unit and will just break even at this level of sales. The contribution margin ratio is 25%. What are the company's fixed expenses?

  Melissa who is 70 years old is unmarried and has no

melissa who is 70 years old is unmarried and has no dependents. her annual income consists of a taxable pension of

  Assume that mcpherson completed the office and warehouse

mcpherson furniture company started construction of a combonation office and warehouse building for its own use at an

  Hamilton stage supplies is a manufacturer of a specialized

hamilton stage supplies is a manufacturer of a specialized type of light used in theaters. information on the first

  Which of the properly describes the impact on the

which of the properly describes the impact on the financial statements when a company reports wage expense of 8700 of

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