User Account

All Pages

Prepare the first two years of an amortization table

Assignment Help Accounting Basics
Reference no: EM131599137

Problem - A Straight-line amortization of bond premium

Hillside issues $2,900,000 of 9%, 15-year bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,549,590.

Required:

1. Prepare the January 1, 2013, journal entry to record the bonds' issuance.

2(a) For each semiannual period, complete the table below to calculate the cash payment.

2(b) For each semiannual period, complete the table below to calculate the straight-line premium amortization. (Round "Unamortized Premium" to whole dollar and use the rounded value for part 4 & 5.)

2(c) For each semiannual period, complete the table below to calculate the bond interest expense.

3. Complete the below table to calculate the total bond interest expense to be recognized over the bonds' life.

4. Prepare the first two years of an amortization table using the straight-line method.

5. Prepare the journal entries to record the first two interest payments.

Reference no: EM131599137

Questions Cloud

Which model will be most appropriate for staffing each group : Which model will be most appropriate for staffing each group: ethnocentric model, polycentric model, or global model? Explain your reasoning for each case.
Whole point of drake equation : Arrive at a reasonable estimate of N, the number of intelligent civilizations in our galaxy-the whole point of Drake's equation.
Oscillating on the end of an idealized massless spring : Will the true period be larger or smaller than given by the equations for mass oscillating on the end of an idealized massless spring? Explain.
Why is the following situation impossible : Why is the following situation impossible? A softball pitcher has a strange technique: she begins with her hand at rest at the highest point.
Prepare the first two years of an amortization table : A Straight-line amortization of bond premium - Prepare the first two years of an amortization table using the straight-line method
What is the rate of acceleration for the car : If a car starts with an initial velocity of 68.0 m/s, how long (in time) will it take to come to a complete stop after a distance of 12.5 m?
Compare the positive and negative effects of globalization : Do you think every nation is ready for Globalization at the same time? Compare and contrast the positive and negative effects of Globalization.
What is the approximate general formula : What is the expected distribution of tX as t approaches infinity - What proportion of the heterozygosity
What is the distance from the earth to the star : a) How long does the trip take as measured by an observer on the Earth? b) What is the distance from the Earth to the star (in light-years) as measured.

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