User Account

All Pages

Journalize the entry to record the amount of cash proceeds

Assignment Help Accounting Basics
Reference no: EM131712550

Question - On July 1, 2016, Merideth Industries Inc. issued $47,500,000 of 10-year, 8% bonds at a market (effective) interest rate of 10%, receiving cash of $41,580,474. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

Required:

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

2. Journalize the entries to record the following:

a. The first semiannual interest payment on December 31, 2016, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)

b. The interest payment on June 30, 2017, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.)

3. Determine the total interest expense for 2016.

4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?

5. Compute the price of $41,580,474 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearest dollar.) Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles.

Reference no: EM131712550

Questions Cloud

Why you think the employee should be fired : Write an argument for why you think the employee should be fired. Write an argument for why you think the employee's excuses where justified.
Describe the type of consumer buying decision : Describe the type of consumer buying decision that best describes the choice to indulge at Ethel's
Create your own branding statement with one to two adjective : Create your own branding statement with one to two adjectives and a noun i.e., your own tag line. Create your 30-second elevator speech (product pitch).
Determine the power consumption in watts : Assume that the 17.0 volt energy source is in a circuit that has a resistance of 6.00 ohms, determine the power consumption in watts
Journalize the entry to record the amount of cash proceeds : Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.
Analyze the major themes of your selected theories : Identify the individuals associated with your selected theories. Analyze the major themes of your selected theories
How many songs they had in their digital music library : Music library. Students were asked how many songs they had in their digital music library. Here's a display of the responses.
Discuss characteristics are likely to remain stable : which characteristics are likely to change from early to middle adulthood, and which characteristics are likely to remain stable
Determine the present value of the bonds payable : Pinder Co. produces and sells high-quality video equipment. Determine the present value of the bonds payable

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is opinion concerning upstream and downstream sales

What is the purpose of a deposition at the trial phase of a company financial statement?

  Major types of transactions in the purchasing cycle

What are the major types of transactions in the Purchasing Cycle? Discuss one control activity in each type of transaction.

  Budget for unforeseen changes and improvements

How may financial managers budget for unforeseen changes and improvemeHow may financial managers budget for unforeseen changes and improvements in information technology that require large capital outlays?

  Vitko corporation makes automotive engines for the most

vitko corporation makes automotive engines. for the most recent month budgeted production was 6000 engines. the

  What would be the amount of interest revenue the lessor

What would be the amount of interest revenue the lessor would record in conjunction with the second quarterly payment at October 1?

  What is the face value of the bond

On July 1, 20X4, MPT bought 100,000 of General Company Inc.'s bonds for $250,000 plus brokerage costs of $145. What is the face value of the bond

  Determine the bonds issue price

The bonds have a $20,000 par value, an annual contract rate of 10%, and mature in 10 years. Required For each of the following three separate situations, (a) determine the bonds' issue price on January

  As discussed in this module it is important to have

as discussed in this module it is important to have performance measures to evaluate managers as they control resources

  Which of the following is an intangible asset

Which of the following is an intangible asset - If an owner invests her laptop computer and printer in the business, there is an increase

  Calculate how much income jenner must recognize

Calculate how much income, if any, Dr. Jenner must recognize from the annuity received in 2015. Show your work

  Assume that the actual level of activity in 2012 was 30000

for years daytona parts company has used an actual plantwide overhead rate and based its prices on cost plus a markup

  The intangible benefits mar-bal appears to enjoy

12-22. Mar-Bal's New ERP System (Analyzing an ERP Study and Implementation)Access the full case story of Mar-Bal Company (the AIS-at-Work for this chapter) at www.iqms.com. Then, respond to each of the following requirements:

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd