User Account

All Pages

Prepare general journal entry to record the interest payment

Assignment Help Accounting Basics
Reference no: EM132535620

Question - On January 1, 2020, Logan Corporation sold $600,000 of 8% bonds at $570,000. The bonds are due on January 1, 2025 and pay interest semiannually every June 30 and December 31. The bonds were sold to yield a 10% effective rate.

Required -

(a) Prepare the general journal entry to record the sale of the bonds.

(b) Prepare the general journal entry to record the interest payment on June 30, 2020, assuming that Logan uses the effective interest method to amortize the bond discount.

(c) Prepare the general journal entry to record the interest payment on December 31, 2020, assuming that Logan uses the effective interest method to amortize the bond discount.

Reference no: EM132535620

Questions Cloud

Business continuity : Among access to the people, access to the facility, asset inventory, service contracts, critical business functions, toxic material storage
Charismatic and transformational and authentic leadership : Distinguish between charismatic, transformational, and authentic leadership. Could an individual display all three types of leadership?
Prepare the journal entry by Ming to record the bonds : The December 31, 2020, balance sheet of Ming Inc. included 12% bonds with a face amount of $100,000. Prepare the journal entry by Ming to record the bonds
Should facebook be regulated : Do you believe that Facebook's actions so far exemplify working in collaboration with, or in opposition to, government? Why?
Prepare general journal entry to record the interest payment : Prepare the general journal entry to record the interest payment on June 30, 2020, assuming that Logan uses the effective interest method
Prepare the journal entries that X record : X sold its investment in Y on January3,2021, for $280,000. No other investments were purchased during 2021. Prepare the journal entries that X record
Business strategy would encourage new business : Explain why you feel this particular business strategy would encourage new business.
Managing the diverse workforce : Discuss the challenges involved in managing diversity and inclusion. What is multicultural organization and how is that translated into recruitment and hiring
How many shares of preferred stock have been issued : Preferred stock 450,000 Common stock 44,000,000 44,450,000 Retained earnings 2,680,000. How many shares of preferred stock have been issued

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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