The carrying value of the bonds on the retirement date was

Assignment Help Accounting Basics
Reference no: EM13569817

Presented below are three independent situations: (a) Howell Corporation purchased $350,000 of its bonds on June 30, 2010, at 103 and immediately retired them. The carrying value of the bonds on the retirement date was $339,500. The bonds pay semiannual interest and the interest payment due on June 30, 2010, has been made and recorded. (b) Justice, Inc. purchased $400,000 of its bonds at 96 on June 30, 2010, and immediately retired them. The carrying value of the bonds on the retirement date was $393,000. The bonds pay semiannual interest and the interest payment due on June 30, 2010, has been made and recorded. (c) Riser Company has $80,000, 10%, 12-year convertible bonds outstanding. These bonds were sold at face value and pay semiannual interest on June 30 and December 31 of each year. The bonds are convertible into 40 shares of Riser $5 par value common stock for each $1,000 par value bond. On December 31, 2010, after the bond interest has been paid, $20,000 par value of bonds were converted. The market value of Riser's common stock was $38 per share on December 31, 2010. Instructions For each of the independent situations, prepare the journal entry to record the retirement or conversion of the bonds.

Reference no: EM13569817

Questions Cloud

Use the following information which describes the possible : use the following information which describes the possible outcomes from investing in a particular asset to answer the
Company a and company b are identical except that company : company a and company b are identical except that company as costs are mostly variable whereas company bs costs are
Rosen company purchased 35000 shares of common stock of : rosen company purchased 35000 shares of common stock of corporation as a long-term investment for 800000. during the
While state and local governments are encouraged to : while state and local governments are encouraged to prepare a complete cafr what are the minimum requirements per gaap?
The carrying value of the bonds on the retirement date was : presented below are three independent situations a howell corporation purchased 350000 of its bonds on june 30 2010 at
Determining charges for private pay residents shady grove : determining charges for private pay residents. shady grove nursing home has 220 private pay residents. the
The board of directors of gibson corporation is considering : the board of directors of gibson corporation is considering two plans for financing the purchase of new plant
In setting its rate for the coming year how much would jwc : profit charges and break-even without and with overhead. a number of years ago at the request of its employees jack
Snappy company has a job-order cost system and uses a : snappy company has a job-order cost system and uses a predetermined overhead rate based on direct labor-hours to apply

Reviews

Write a Review

Accounting Basics Questions & Answers

  An organization''s budgets will often be prepared to cover

An organization's budgets will often be prepared to cover:

  Financial statements and misappropriation of assets

Fraud is a major concern in the business world.In a few paragraphs, explain the difference between an intentional misstatement of financial statements and misappropriation of assets.

  Determining losses for tax purposes

In the current year, Teal Corporation becomes insolvent and is declared bankrupt. During the corporation's existence, Emily was paid an annual salary of $60,000. How should she treat her losses for tax purposes?

  For the past several years shane banovich has operated a

for the past several years shane banovich has operated a part-time consulting business from his home. as of october

  Birk camera shop inc uses the lower-of-cost-or-market basis

birk camera shop inc. uses the lower-of-cost-or-market basis for its inventory. the following data are available at

  Net income or loss under discontinued operations

Ignoring income taxes, what amount should be reported in the 2010 income statement as the net income or loss under 'discontinued operations' ?

  The effective-interest method

The effective-interest method,

  New breakeven point

Nancy's Niche sells a single product. 8,000 units were sold resulting in $80,000 of sales revenue, $20,000 of variable costs, and $10,000 of fixed costs. If variable costs decrease by $1 per unit, the new breakeven point is:

  Column of the income statement showing debits

The column of the income statement show the debits are equal to $56,899 and credits are $60,333. What do this information mean to the accountant?

  Schedule of compensation expense

prepare a 5-year (2009-2013) schedule of compensation expense pertaining to the 40,000 SARs granted to president scott.

  Hachey company has accounts receivable of 95100 at march 31

hachey company has accounts receivable of 95100 at march 31 2007. an analysis of the accounts shows these

  Problem regarding lease or buy the pcs

Discuss the implication's related to the CFO's desire to keep the transaction "off" the balance sheet. Base on the information presented make a recommendation as to whether AMG should lease or buy the PCs.

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