User Account

All Pages

Prepare the journal entry to record the payment

Assignment Help Accounting Basics
Reference no: EM131598798

Question - On January 1, 2014, Lock Corporation issued $1,878,000 face value, 6%, 10- year bonds at $1,625,969. This price resulted in an effective-interest rate of 8% on the bonds. Lock uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest January 1.

Required -

Prepare the journal entry to record the issuance of the bonds on January 1, 2014.

Prepare a mortization table through December 31, 2016 (three interest periods) for this bond issue.  table through December 31, 2016 (three interest periods) for this bond issue. amortization table through December 31, 2016 (three interest periods) for this bond issue.  table through December 31, 2016 (three interest periods) for this bond issue.

Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2014.

Prepare the journal entry to record the payment of interest on January 1, 2015.

Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2015.

Reference no: EM131598798

Questions Cloud

How should the nurse describe this pattern : The contractions are every 1½ minutes. How should the nurse describe this pattern?
Compare the ancient female rulers : Comparing Ancient Female Rulers. Compare the Tang Empress Wu Zetian (also known as Empress Wu or as Wu Zhao; ruled China around 690-705 AD).
Why is it important for blood to flow in only one direction : Why is pressure a sensible reading to measure circulatory health? Why is it important for blood to flow in only one direction?
Reflect the actual volume of sales is called : The company has also budgeted for labor of £130,000 with actual costs being £133,000.
Prepare the journal entry to record the payment : Prepare the journal entry to record the payment of interest on January 1, 2015. Prepare the journal entry to record the accrual of interest
Eukaryotic cell health and survival : Mitochondria are a key organelle and responsible for eukaryotic cell health and survival. Begin by reviewing the web article
Importance of exercise for diabetic patients : What can you tell her about the importance of exercise for diabetic patients?
How are these functions critical to survival : Consider the primary functions of the muscular system. Explain how are these functions critical to survival?
Calculate average salary of all administrative assistants : Calculate the average job satisfaction for Administrative Assistant. Calculate average salary of all Administrative Assistants and place the result in cell J5.

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