Prepare the journal entry for the issuance of the bonds

Assignment Help Accounting Basics
Reference no: EM13881219

1.On March 1, 2013, Brown Ferring Corporation issued $100 million of 12% bonds, dated January 1, 2013, for $99 million (plus accrued interest). The bonds mature on December 31, 2032, and pay interest semiannually on June 30 and December 31. Brown Ferring's fiscal period is the calendar year.

Required:
1. Determine the amount of accrued interest that was included in the proceeds received from the bond sale.
2. Prepare the journal entry for the issuance of the bonds by Brown Ferring.

Reference no: EM13881219

Questions Cloud

What does ups quantum view do for customers? : What does UPS Quantum View do for customers?
Adjust the bonds to their fair value for presentation : The bonds are not traded on an active exchange.
Briefly describe the main point of this article : Using a search engine, search for an article written by Vangie Beal titled Top 2012 e-Commerce Trend. Briefly describe the main point of this article.
Number of pints made and sold to the nearest integer : Initially, you have lost 20,000 dollars in the stock market and you continue to lose 350 dollars per month. In how many months will it be before your losses total 33,040 dollars, thus your balance is - 33,040? What is the monthly breakeven point for ..
Prepare the journal entry for the issuance of the bonds : The bonds mature on December 31, 2032, and pay interest semiannually on June 30 and December 31. Brown Ferring's fiscal period is the calendar year.
What is the primary motivation for channel stuffing : Visit the financial education website created by Equade Internet Ltd. at www.investopedia.com. Note the definition for channel stuffing. According to this site, what is the primary motivation for channel stuffing?
What are unintended consequences of financial innovation : Relate your answers to the movie ‘Inside Job’. What are the unintended consequences of financial innovation? What are the unintended consequences of regulation? Explain how the financial crisis of 2008 occurred—who is to blame?
Included in current assets : Which of the following items is NOT included in current assets?
Unsure about the assumptions of a growth rate : The Yurdone Corporation wants to set up a private cemetry business. According to the CFO, Barry M. Deep, business is "looking up". The company is somewhat unsure about the assumptions of a growth rate of 5.7 percent its cash flows. At what constant g..

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the present value of these payments

PV of multiple cash flows: Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years.

  What are sunk costs

What are sunk costs? Provide at least two real-life examples of sunk costs for a project. Should sunk costs be included as incremental cash flows and what are some important factors to consider when conducting a credit evaluation and scoring?

  Kathy myers frequently purchases stocks and bonds but she

kathy myers frequently purchases stocks and bonds but she is uncertain how to determine the rate of return that she is

  From the following accounts and amounts prepare a balance

from the following accounts and amounts prepare a balance sheet for the swell company for december 31 2010. you must

  What is the effect of a purchase of inventory on account

Borrowed funds are invested are able to earn a rate of return greater than the interest rate required by the lender, then financial leverage is positive - When computing the acid-test ratio, a short-term note receivable would be included in the num..

  What are some of the motivations for changes in accounting

what are some of the motivations for changes in accounting principles changes in accounting estimates and accounting

  A bond issued by cornwallis inc 15 years ago has a coupon

a bond issued by cornwallis inc. 15 years ago has a coupon rate of 7 and a face value of 1000. the bond will mature in

  In december 2008 ace consulting performed services for a

in december 2008 ace consulting performed services for a customer for 12000 on account. on june 1 2009 after several

  Tracy owns a nondepreciable capital asset held for

tracy owns a nondepreciable capital asset held for investment. the asset was purchased for 250000 six years earlier and

  Assume the health club-spa is considering installing new

assume the health club-spa is considering installing new exercise equipment. upon investigating the manager of the

  Kolbys korndogs is looking at a new sausage system with an

kolbys korndogs is looking at a new sausage system with an installed cost of 777000. this cost will be depreciated

  Provision for imposition of civil liability

From the auditors point of view which of the following is a preferable provision for imposition of civil liability for financial damages?

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