Reference no: EM13867413
Assume the same facts as PA10-7, except that Surreal uses the simplified effective-interest bond amortization method, as shown in chapter supplement 10C.
Info PA10-7
On January 1, 2015, Surreal Manufacturing issued 600 bonds, each with a face value of $ 1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31, 2017. On the issue date, the market interest rate was 4 percent, so the total proceeds from the bond issue were $ 583,352. Surreal uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year.
Required:
1. Prepare a bond amortization schedule.
2. Give the journal entry to record the bond issue.
3. Give the journal entries to record the interest payments on December 31, 2015 and 2016.
4. Give the journal entry to record the interest and face value payment on December 31, 2017.
5. Assume the bonds are retired on January 1, 2017, at a price of 101. Give the journal entry to record the bond retirement.
|
Engineering professional seminar
: This Ethics Writing Assignment is meant to encourage you, the aspiring engineer, to examine how you will deal with potential ethical conflicts you will encounter in your career. You are encouraged to be thorough in developing your answers and disc..
|
|
Dormant commerce clause of the constitution
: Discuss your stand on whether state regulation of Internet prescription drug transactions violates the dormant commerce clause of the Constitution
|
|
Select the highly marketable investment
: Select the highly marketable investment
|
|
Company adopted a healthcare plan for its retired employees.
: On January 1, 2010, Flash and Dash Company adopted a healthcare plan for its retired employees. To determine eligibility for benefits, the company retroactively gives credit to the date of hire for each employee. The following information is availabl..
|
|
Prepare a bond amortization schedule
: Prepare a bond amortization schedule. Give the journal entry to record the bond issue. Give the journal entries to record the interest payments on December 31, 2015 and 2016. Give the journal entry to record the interest and face value payment on Dec..
|
|
Properties of orthogonal functions
: In this lab, you will investigate the properties of orthogonal functions and the Fourier series. This is a long lab, so plan accordingly.
|
|
Write your synthesis in the style of the discipline
: The purpose of this assignment is for you to (a) synthesize disciplinary knowledge regarding a topic of interpersonal communication research, (b) effectively write your synthesis in the style of the discipline
|
|
Average remaining service life of its active participating
: On January 1, 2010, the Parkway Company adopted a defined benefit pension plan. At that time, the company awarded retroactive benefits to its employees, resulting in a prior service cost of $2,180,000 on that date (which it did not fund).
|
|
Is the momentum of the system conserved
: Draw separate arrows for object A and for object B representing the direction of the change in momentum vector of the object and Is the magnitude of the change in momentum of object A greater than, less than, or equal to that of object B? Explain y..
|