Solution-Prepare the journal entry at the date of the bond

Prepare the journal entry at the date of the bond purchase

Assignment Help Accounting Basics

Reference no: EM131795401

Question - On January 1, 2009, Roosevelt Company purchased 12% bonds, having a maturity value of $500,000, for $537,907.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2009, and mature on January 1, 2014, with interest receivable December 31 of each year. Roosevelt Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the available-for-sale category.

The fair value of the bonds at December 31 of each year-end is as follows:

2009 $534,200

2010 $515,000

2011 $513,000

2012 $517,000

2013 $500,000

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

Reference no: EM131795401

Questions Cloud

What is coral corporation after-tax net cash inflow : It also paid $35,000 of other expenses. All transactions were in cash. What is Coral Corporation's after-tax net cash inflow

What is the impact on income if gund accepts the order : What is the impact on income if Gund accepts the order, Should Gund Manufacturing accept the order

Calculate the expected utility of each lottery : Describe the new risks facing society today. Give examples of risks in electronic commerce.

Determine the proportion of students in india : A survey takes a random sample to determine the proportion of students in India who support the Women's Reservation Bill.

Prepare the journal entry at the date of the bond purchase : Roosevelt Company uses the effective-interest method to allocate unamortized discount or premium. Prepare the journal entry at the date of the bond purchase

Discuss the audit of lowes common stock outstanding : Provide a listing of additional auditing procedures likely to be necessary in the audit of Lowes common stock outstanding

Inflation and interest rates : What would you expect the nominal rate of interest to be if the real rate is 4.3 percent and the expected inflation rate is 6.6 ?percent?

Compute the number of units in ending inventory : Compute cost of goods available for sale and the number of units available for sale. Compute the number of units in ending inventory.

State a one-proportion z-test would be appropriate : For each of the following, state whether a one-proportion z-test or a two-proportion z-test would be appropriate, and name the populations.

User Account

All Pages

Prepare the journal entry at the date of the bond purchase

Reference no: EM131795401

Reference no: EM131795401

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT