User Account

All Pages

Prepare journal entries for all dates

Assignment Help Accounting Basics
Reference no: EM131611675

Problem -

The following information relates to the HTM debts securities investments of Kiran Company during 2016:

a. February 1: The company purchased 10% bonds of Tempe Co. having a par value of $100,000 at 98 plus accrued interest. Interest is payable April 1 and October 1. Maturity date is 10/1/17.

b. April 1:  Semiannual interest is received and amortization is updated.

c. July 1:  9% bonds of Flagstaff, Inc. were purchased. These bonds with a par value of $50,000 were purchased at 105 plus accrued interest. Interest dates are April 1 and October 1. Maturity date is 11/1/17.

d. October 1:  Semiannual interest is received and amortization is updated on Tempe bonds.

e. October 1:  Semiannual interest is received and amortization is updated on Flagstaff bonds.

f. December 31:  Interest is accrued and amortization is updated on both investments.

Required: Prepare journal entries for all dates. Present journal entries for the Tempe bonds (a, b, d, f), then journal entries for the Flagstaff bonds (c, e, f). No explanations or supporting computations are required. Use straight-line amortization.

Reference no: EM131611675

Questions Cloud

What are some of the substitutes for bananas : What are some of the substitutes for bananas and what would happen to demand, supply, price, and quantity in the markets for these items if TR4 spread.
Prepare analysis report on the proposal : Prepare analysis report on the proposal to keep or replace the equipment & state your decision
Define the preferred stock valuation : What is the value of a preferred stock when the dividend rate is 13 percent on a $100 par value?
Show the effect of lower labour costs on price : Tim Hortons' Risks Tim Hortons has exploded to become a dominant player among quick-serve restaurants. In 2001, it took the risk by switching to centralized.
Prepare journal entries for all dates : Prepare journal entries for all dates. Present journal entries for the Tempe bonds (a, b, d, f), then journal entries for the Flagstaff bonds
Human health and the environment : What are the potential impacts of animal waste on human health and the environment?
Common stockholder expected return : The price at the end of 1 year is expected to be $46, and dividends for next year should be $1.25. What is the expected rate of return?
What are the steps countries like the united states : What are the steps countries like the United States take to reduce CO2 emissions really have an effect on global warming when other countries do not take.
What is the current yield of bond-current yield of bond : What is the current yield of the bond? The current yield of the bond is %.

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