### Record the initial bond issuance

Assignment Help Financial Accounting
##### Reference no: EM13334783

Star mart company inc issued \$100000 of bonds payable on June 30 2010. The bonds are to be redeemed in five years while paying interest semiannually at the contract rate of 10% each June 30th and December 31st. The market or effective rate of interest is 12%. The amount of cash received initially from the bond issuance was \$92640 on June 30,2010.

Instructions

1)Record the initial bond issuance on June 30 2010 in general journal form.

2)Record the first interest payment on December 31, 2010

3)Record the first amortization of the bond discount on December 31,2010. The bond discount is amortized on the straight line method.

4)Record the second interest payment on June 30 2011

5)Record the third interest payment on December 31 2011

6)The company only records the amortization of the bond discount once a year. record the second amortization of the bond discount on December 31,2011 using the straight line method.

7)In T account form, what is the balance of the unmamorized Discount on Bonds payable at December 31,2011.

8)What is the total interest expense for year 2010

9)What is the total interest expense for the year 2011

10)List the bond carrying value for the bond at December 31 2011

### Write a Review

#### Prepare general journal entries to record the transactions

Prepare general journal entries to record the above transactions.

#### Illustrate what is amount and character of gain long

Illustrate what is the amount and character of the gain Longworth will recognize on the sale if the sale proceeds were decreased to \$15,000?

#### How many shares of ordinary stock are outstanding

How many shares of ordinary stock are outstanding at year-end?

#### Determine the cash payback period for each proposal

Determine the cash payback period for each proposal. Round your answers to two decimal places, if necessary

#### Evaluate for each plan earnings per share of common stock

Evaluate for each plan the earnings per share of common stock, assuming that the income before bond interest and income tax is \$2,000,000.

#### What was is the balance of irving capital account

The partnership pays Gst \$100,000 cash for her partnership interest.After Gast's retirement, what was is the balance of Irving's capital account ?

#### Illustrate what type of financing should kaitlyn acquire

Kaitlyn's company needs to obtain funds in order to keep the business going; however, she does not want stockholders influencing the direction of her company. Illustrate what type of financing should Kaitlyn acquire?

Using the straight- line method. the amount of discountor premiumt o be amortized every intrest period would be''

#### What will be the implications for barmunda

What will be the implications for Barmunda Pty Ltd if it is considered to be a reporting entity and advise the Management Committee of Barmunda Pty Ltd as to whether the company would be considered a reporting entity in accordance

#### Analysis for american corporations

Describe your assessment of the variety of situations where American corporations have attended to the concerns of critics and instituted programs to improve the lives of all stakeholders of the corporations and have made a contribution to make Am..

#### Analyze process of accounting for changes in ownership

Analyze the process of accounting for changes in ownership interest to determine which step in that process is likely to cause the greatest number of challenges to the greatest number of companies. Explain your rationale.

#### Evaluation of internal control criteria

Evaluation of internal control criteria and For each of these five separate cases, identify the principle of internal control that is violated.