Journal entry to record the retirement

Reference no: EM13131335

"Venzuela Co. is builing a new hockey areana at a cost of 2,500,000. It recieved a downpayment of 500,000 from local businesses to support the project and now needs to borrow 2,000,000 to complete the project. It therefore decides to issue 2,000,000 of 10.5% 10 yr bonds. These bonds were issued on January 1, 2009, and pay interest annually on each January 1. The bonds yield 10%. Venezuela paid 50,000 in bond issue costs related to the bond sale.

Instructions:

a) Prepare the journal entry to record the issuance of the bonds and the related bond issue costs incurred on January 1, 2009

B) Prepare a bond amortization schedule up to and including Januayr 1, 2013, using the effective interest method

C) Assume that on July 1, 2012 Venzuela Co. retires half of the bonds at a cost of 1,065,000 plus accrued interest. Prepare the journal entry to record this retirement."

Reference no: EM13131335

Questions Cloud

How many spare tubes must building custodian maintain : How many spare tubes must the building custodian maintain to have at least 0.95 probability of replacing all failures on a given day?

Error in sentences : The man who views the world at fifty the same as he did at twenty,” remarked the boxer Muhammad Ali, has wasted thirty years of his life

Calculate the partial pressures of each gas : A container holds 355 mL of a mixture of nitrogen and carbon dioxide gases. Calculate the partial pressures of each gas if the container is at 27.3oC.

What is meant when a monopoly firm is described : What is meant when a monopoly firm is described as a price maker? How is a price maker different from a price taker? Is a monopoly ever a price taker?

Journal entry to record the retirement : Assume that on July 1, 2012 Venzuela Co. retires half of the bonds at a cost of 1,065,000 plus accrued interest. Prepare the journal entry to record this retirement."

What are value-added processes : Michael Porter is another faculty member at the Harvard Business School. His work is the foundation of how businesses develop and manage competition and strategy.

Information about reflexive-antisymmetric and transitive : Which of the properties: reflexive, antisymmetric and transitive are true for the given relation? Begin your discussion by defining each term in general first and then show how the definition relates to this specific example.

Calculate the mass of zinc required : Zinc sulfide reacts with nitric acid to give zinc sulfate and nitric oxide. Calculate the mass of zinc required to react with 110 mL of 0.15 M nitric acid.

Probability that human errors came from station c : Suppose that a malfunction was reported and it was found to be caused by other human errors. What is the probability that it came from station C?

User Account

All Pages