Prepare journal entry to record the issuance of bonds

Assignment Help Financial Accounting

Reference no: EM131223164

Cupola Fan Corporation issued 14%, $440,000, 10-year bonds for $421,000 on June 30, 2016. Debt issue costs were $1,900. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2017), the corporation exercised its call privilege and retired the bonds for $431,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required: Prepare the journal entry to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2016 and June 30, 2017 according to IFRS. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Reference no: EM131223164

Questions Cloud

Create a simple 3-d model of a two-story house : You can either estimate or consult specialized charts used by architects to locate the sun at these times of day.

Depreciation moves cost of an asset to depreciation expense : Depreciation moves the cost of an asset to Depreciation Expense during the asset's useful life. The accounts involved in recording depreciation are Depreciation Expense and Accumulated Depreciation. As you can see, cash is not involved. In other word..

Off time of the pedestrian crossing light : It should closely match the on / off time of the pedestrian crossing light that flashes on and off, located between the H building and the Student Center to the east.

Chinas stock of foreign exchange reserves : China's stock of foreign exchange reserves has risen more than 20 times since 2000, and reached $3.5 trillion in mid-2013.- Do you think that pace of reserve accumulation is likely to continue?

Prepare journal entry to record the issuance of bonds : Cupola Fan Corporation issued 14%, $440,000, 10-year bonds for $421,000 on June 30, 2016. Debt issue costs were $1,900. Interest is paid semiannually on December 31 and June 30. Prepare the journal entry to record the issuance of the bonds, the payme..

What is expected in the future in term of future performance : Valuation of a firm's financial assets is said to be based on what is expected in the future, in terms of the future performance of the firm, the industry, and the economy.

Using the effective interest method : A company issues a 10 year 7.5% $1 million dollar bond which pays interest semi-annually. The issue price is $966,024.18 Using the effective interest method, how much of the discount is amortized in the first year on the bonds term?

Create a graphic representation of the data : Use one of the visualization methods to create a graphic representation of the data, using hand techniques, computer techniques, or a combination of the two.

Do you think us dollar is more likely to strengthen : Do you think the U.S. dollar is more likely to strengthen or weaken over the next few months? - Explain your reasoning.

User Account

All Pages