Prepare a bond amortization schedule

Assignment Help Financial Accounting

Reference no: EM131214306

On January 1, 2013, Hi and Lois Company purchased 12% bonds having a maturity value of $343,000, for $369,004.48. The bonds provide the bondholders with a 10.00% yield. They are dated January 1, 2013, and mature January 1, 2018, with interest receivable December 31 of each year. Hi and Lois Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. (a) and (b) (a) Prepare the journal entry at the date of the bond purchase (b) Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Reference no: EM131214306

Questions Cloud

Find amount of capital gain realized from assets liquidation : An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $350,000 and will be sold for $50,000 at the end of the project. Assume tax rate is 35%. Find the asset’s book value at the time ..

The implicit interest rate computed by the lessor : If the lessee knows the implicit interest rate computed by the lessor (e.g., 7%) and it is less than the lessee’s incremental borrowing rate (e.g., 8%), then the lessee must use the lessor’s rate. Why does the FASB require companies to use the lower ..

What is the total depreciation amount prior : They placed the rental home into service on March 1, 2009, and of the $515,000 purchase price, $426,000 was allocated to the land. What would the depreciation amount be when filing a tax return for 2015. Also, what is the total depreciation amount pr..

What is the method of presentation required : What is the method of presentation required by SFAS 160 of “non-controlling interest” on a consolidated balance sheet?

Prepare a bond amortization schedule : On January 1, 2013, Hi and Lois Company purchased 12% bonds having a maturity value of $343,000, for $369,004.48. The bonds provide the bondholders with a 10.00% yield. The bonds are classified in the held-to-maturity category. Prepare the journal en..

Prepare the journal entries to record the interest received : On January 1, 2013, Hi and Lois Company purchased 13% bonds, having a maturity value of $547,500, for $609,763.18. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2013, and mature January 1, 2018, with interest receivabl..

Calculate the amount of intercompany sales : Perkins Company owns 85% of Sheraton Company. Perkins Company sells merchandise to Sheraton Company at 20% above cost (gross profit). During 2011 and 2012, such sales amounted to $400,000 and $500,000, respectively. At the end of each year, Sheraton ..

Difference between the implied value and the book value : The difference between the implied value and the book value of the company is calculated to be $200,000. Per review of the financial information provided by the company, the difference relates to tangibles and intangibles. Tangibles – Inventory and P..

When the implied book value exceeds the book values : When the implied book value exceeds the book values of identifiable net assets, the difference is accounted for as

User Account

All Pages