User Account

All Pages

Prepare the entry required on december

Assignment Help Accounting Basics
Reference no: EM132010043

Question - On June 30, 2006, County Company issued 12% bonds with a par value of $818,300 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2014. Because of lower interest rates and a significant change in the company's credit rating, it was decided to call the entire issue on June 30, 2015, and to issue new bonds. New 10% bonds were sold in the amount of $1,029,000 at 102; they mature in 20 years. County Company uses straight-line amortization. Interest payment dates are December 31 and June 30.

(a) Prepare journal entries to record (1) the redemption of the old issue and (2) the sale of the new issue on June 30, 2015.

(b) Prepare the entry required on December 31, 2015, to record the payment of the first 6 month's interest and the amortization of premium on the bonds.

Reference no: EM132010043

Questions Cloud

What biblical passages support this approach to the course : What should be the biblical approach to social services regarding the methods and techniques of practice with families, groups, and communities?
Experience of chronic illness : Describe the role of psychology in the onset of chronic illness as well as how psychological factors are related to the experience of chronic illness
What methodology a or solution are you proposing : Explain how this organization may help solve your specific social problem. What methodology a or solution are you proposing?
Write a strategic management report : You need to write a strategic management report on Adidas with these important requirements
Prepare the entry required on december : Prepare the entry required on December 31, 2015, to record the payment of the first 6 month's interest and the amortization of premium on the bonds
Describe how psychologists from the behavioral tradition : Provide an example where learning was apparent in your life and describe how psychologists from the behavioral tradition would describe the learning process.
What shortcomings do you see in the bureaucracy : What shortcomings do you see in the bureaucracy? (Select and provideevidence of at least two shortcomings)
Strengths and weaknesses of co-teaching options : Describe the strengths and weaknesses of co-teaching options. Of the options presented, which can be used within the classroom and why?
What should we expect to see on school playgrounds : You might consider settings not covered by any of the books, and try to apply each author's theory to that setting.

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