Journal entry to record the retirement

Assignment Help Accounting Basics
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?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Hsbc drug cartel money laundering guide

Define the major problem or problems. Indicate how the problems are related to one another: What has happened to the key players since the events in this case?

  Combined statement of income and comprehensive income

Prepare a combined statement of income and comprehensive income for 2011, beginning with net income.

  Four elements of budgeting cycle

Discuss the four elements of the budgeting cycle. What are the human aspects of budgeting? Do you have a budget for personal expenses? Does it work?

  Standard quantity allowed for units production

The standard quantity allowed for the units produced was 6,500 pounds, the standard price was $2.50 per pound, and the materials quantity variance was $375 favorable. Each unit uses 1 pound of materials. How many units were actually produced?

  Problem related to loss on the income statement

Assuming that the company's tax rate is 30%, what amount will be reported for this loss on the income statement?

  Operating sales-type leases

Finance Here Sales & Service provides leased-based financing for its full line of commercial generators. Sales of the generators are properly accounted for as operating sales-type leases.

  Depreciation on the school musical instruments

The Piedmont School of Music has hired you as a consultant to help in analyzing the behavior of the school's costs.

  Calculate efficiency variances

Compute the efficiency variances for direct labour and direct materials. Provide likely explanations for variances. Do you have reason to be concerned about you performance evaluation? Explain.

  What should be the net cash provided by operating activities

Based on the information given above, what should be the net cash provided by operating activities in the statement of cash flows for the year ended December 31, 2011?

  Effective and efficient statistical measurements

What are some advantages and disadvantages of each: (a) team-based, (b) network-based, and (c) boundaryless organizations?

  Compare the effects of renouncing citizenship

Decide if either of these actions is warranted in your particular case and state why you think that way.

  Why an investment near its maturity have insignificant risk

The value of an investment can be described as equal to the present value of its future cash flows, discounted at an appropriate interest rate. Why does an investment near its maturity have insignificant risk of change in value because of changes ..

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