Prepare the journal entry at the date of the bond issuance

Assignment Help Accounting Basics
Reference no: EM131788055

Problem - On January 1, 2010, Osborn Company sold 12% bonds having a maturity value of $842,000 for $905,836.06, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2010, and mature January 1, 2015, with interest payable December 31 of each year. Osborn Company allocates interest and unamortized discount or premium on the effective interest basis. (List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.)

(a) Prepare the journal entry at the date of the bond issuance.

(b) Prepare a schedule of interest expense and bond amortization for 2010-2012

(c) Prepare the journal entry to record the interest payment and the amortization for 2010.

(d) Prepare the journal entry to record the interest payment and the amortization for 2012.

Reference no: EM131788055

Questions Cloud

Which do you think has a stronger relationship with value : Which do you think has a stronger relationship with value of the land-the number of acres of land or the number of rooms in the homes? Why?
How would you advise your company : What is their approach to growing the business? How would you advise your company based on what you have learned this week in terms of self-supporting growth?
Prepare the entries for meredith to record the purchase : Prepare the entries for Meredith to record the purchase and any additional entries related to this investment in pirates Company in 2010
Explain why the mean and median are not the same : The figure, which is from data taken from the Ventura County Star, shows a histogram of house prices in Thousand Oaks, California, in 2009.
Prepare the journal entry at the date of the bond issuance : Osborn Company allocates interest and unamortized discount or premium on the effective interest basis. Prepare the journal entry at the date of bond issuance
What recommendations do you have to stop such a fraud : How was the fraud committed? What was the outcome? What recommendations do you have to stop such a fraud relating to this conflict of interest?
What annual contributions to the retirement fund will allow : You wish to retire in 20 years, at which time you want to have accumulated enough money to receive an annual annuity of $12,000 for 25 years after retirement.
Discipline process of an unproductive employee : Discuss the counseling and discipline process of an unproductive employee.
Describe the distribution of ages by giving the shape : Describe the distribution of ages by giving the shape and, the numerical value for an appropriate measure of spread, as well as mentioning any outliers.

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd