Record the bond issue, Pizza Pier issues 9%, 8-year bonds

Record the bond issue

Assignment Help Financial Accounting

Reference no: EM131268005

Pizza Pier issues 9%, 8-year bonds with a face amount of $70,000 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is also 9%. Interest is paid semiannually on June 30 and December 31.

1. Record the bond issue. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Record the first interest payment on June 30, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.)

Reference no: EM131268005

Questions Cloud

Made charitable contributions : Jeff and Judee are a married couple both in their 40’s with two dependent sons. Their salaries total $105,000. They have a capital loss of $7,000 and tax-exempt interest income of $600. They paid home mortgage interest of $13,000, state income taxes ..

Compute adjusted gross income : Dan is a single taxpayer. His salary is $75,000. Dan realized a short-term capital loss of $8,000. His itemized deductions total $3,500 in tax year 2015. Compute Dan's adjusted gross income:

What is her basis for the house : In 2001, Ellen purchased a house for $60,000 to use as her personal residence. She paid $12,000 and borrowed $48,000 from the local savings and loan company. In 2005, she paid $15,000 to add a room to the house. In 2007, she paid $625 to have the hou..

Alternative results in the highest earnings per share : Frontier City is trying to decide between the following two alternatives to finance its new $24 million roller coaster: Issue $24 million of 6% bonds at face amount. Issue two million shares of common stock for $12 per share. Which alternative result..

Record the bond issue : Pizza Pier issues 9%, 8-year bonds with a face amount of $70,000 on January 1, 2018. The market interest rate for bonds of similar risk and maturity is also 9%. Interest is paid semiannually on June 30 and December 31. Record the bond issue. Record t..

Current liabilities and long term liabilities : On April 1, 2018, the Electronic Superstore borrows $19 million of which $5 million is due in 2019. Show how the company would report the $19 million debt on its December 31, 2018 balance sheet. Current Liabilities: Long term Liabilities:

Straight-line and double-declining-balance : Chubbyville purchases a delivery van for $23,500. Chubbyville estimates a four-year service life and a residual value of $2,300. During the four-year period, the company expects to drive the van 108,000 miles. Straight-line. Double-declining-balance...

Complete the first three rows of an amortization : On January 1, 2018, Ripstick Park issues $760,000 of 6% bonds, due in eleven years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 7%, the bonds will issue at $702,365. ..

Discuss the elements of fraud triangle that motivated fraud : The CEO and the CFO of Automation Company were both aware that the company’s controller was reporting fraudulent revenues. Upper level executives are paid very large bonuses when the company meets the earnings goal established in the company’s budget..

User Account

All Pages