On july 1 2005 kitel inc issued 9 bonds in the face

Assignment Help Accounting Basics

Reference no: EM13614307

1.) On July 1, 2005, Kitel, Inc. issued 9% bonds in the face amountof $5,000,000, which mature on July 1, 2015. The bonds were issuedfor $4,695,000 to yield 10%, resulting in a bond discount of$305,000. Kitel uses the effective interest method of amortizingbond discount. Interest is payable annually on June 30. At June 30,2007, Kitel's unamortized bond discount should be
A) $264,050
B) $225,000
C) $244,000
D) $215,000

2.) On January 1, 2007, Nott Co. sold $1,000,000 of its 10% bondsfor $885,296 to yield 12%. Interest is payable semiannually onJanuary 1. What amount should Nott report as interest expense for the six months ended June 30, 2007?
A) $44,266
B) $50,000
C) $53,118
D) $60,000

Reference no: EM13614307

Questions Cloud

The plane arrives in 200 h what were the a magnitude in kmh : a light plane attains an airspeed of 550 kmh. the pilot sets out for a destination 760 km due north but discovers that

On february 12 6000 shares of lucas company are acquired at : on february 12 6000 shares of lucas company are acquired at aprice of 22 per share plus a 240 brokerage fee. on april22

An other frame moves with a speed of 085 relative to the : an other frame moves with a speed of 0.85 relative to the home frame. an object at rest in the home frame has a length

Compare the minimum theoretical rate and the actual rate at : at steady state. a power cycle generates 100 mw of electricity while discharging energy by heat transfer at a rate of

On july 1 2005 kitel inc issued 9 bonds in the face : 1. on july 1 2005 kitel inc. issued 9 bonds in the face amountof 5000000 which mature on july 1 2015. the bonds were

Assuming that motorola follows a continuous review policy : motorola obtains cell phones from its contract manufacturer located in china to serve u.s. market. the u.s. is served

Our company has two checking accounts back in 2007 former : our company has two checking accounts. back in 2007 former bookkeeper by mistake entered wire transfer from one

What is the cycle efficiency if a cold-air-standard : a two-cylinder 250 cm3 displacement motorcycle engine that operates on an ideal otto cycle at 4500 rpm. the compression

Consider the electric circuit shown here consisting of a : consider the electric circuit shown here consisting of a 12.0-v battery and three capacitors connected partly in series

User Account

All Pages