Solution-Prepare journal entries to record transaction

Prepare journal entries to record transaction

Assignment Help Financial Accounting

Reference no: EM132885487

The transactions given below relate to a sinking fund for retirement of long term bonds of Red Company.

1. In accordance with the terms of bond indenture, cash in the amount of P2,000,000 is transferred at the end of the first year, from the regular cash account to the sinking fund. The entity administer the fund.

2. The sinking fund cash is used to acquired AB Company 12% bonds of P500,000 face value, maturing in five years, for P450,000.

3. The sinking fund cash is used to acquired 10% P100 par value CD 5,000 preference share, at P80 per share

4. Annual interest is received on the AB bonds. The discount on the bonds is amortized accordingly using straight line method

Required:

Problem 1: Prepare journal entries to record transaction.

Reference no: EM132885487

Questions Cloud

Efficiency for improved athletic performance : As high-technology apparel develops with ever more efficiency for improved athletic performance, should teams or even individual members of a team ethically be

Effective teachers continue to grow-learn throughout career : Effective teachers continue to grow and learn throughout their career. How do you plan to continue growing in your practice and utilize district, academic

Prepare journal entries on books of abc company to record : Prepare journal entries on the books of ABC Company to record the transactions. Acquisition of securities at par by trustee, P700,000.

Compare and contrast leader member exchange : Compare and contrast Leader Member exchange (LMX) with Values Based Leadership (Pick authentic or Ethical or Spritual or Treat authentic/ethical/spiritual as a

Prepare journal entries to record transaction : Prepare journal entries to record transaction. The sinking fund cash is used to acquired AB Company 12% bonds of P500,000 face value, maturing in five years.

Conducting a hr inventory in organization : QUESTION TWO Discuss in details how you can go about conducting a HR inventory in your organization and clearly outline the reasons why such an exercise may be

Explain why the valuation of assets acquired by corporation : Explain why the valuation of assets acquired by a corporation in exchange for its own common stock is sometimes difficult

Provide schools with sufficient funds to do good job : What do you think is the best remedy for the difficult question of how best to provide schools with sufficient funds to do a good job?

Identify any local organization in jamaica : Identify any local organization in Jamaica and recommend for it an effective HR strategy to guide its operations over the next three years.

User Account

All Pages

Prepare journal entries to record transaction

Reference no: EM132885487

Reference no: EM132885487

Questions Cloud

Reviews

Write a Review

Financial Accounting Questions & Answers

Financial statement analysis and preparation

Shareholder of a company

Financial and accounting principles

Prepare a statement of cash flow using the direct method

Financial accounting assignment

Prepare general journal entries for goela

Principles of financial accounting

Prepare general journal entries to record the transactions

Global reporting initiative

Explain the iasb conceptual frameworks

Determine the company''s financial statements

Computation of free cash flow

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT