Uses the straight-line method to amortize the bond premium

Assignment Help Financial Accounting

Reference no: EM13794782

On January 1, 2015, Carter Sales issued $15,000 in bonds for $15,800. They were 8-year bonds with a stated rate of 9%, and pay semi annual interest. Carter Sales uses the straight-line method to amortize the bond premium. On June 30, 2015, when Carter makes the first payment to bondholders, how much will they report as Interest Expense?

Reference no: EM13794782

Questions Cloud

Describe the biggest challenge to the successful : Analyze the benefits of use-case modeling and isolate the most advantageous benefit to the firm you currently work or worked in the past and state why.Describe the biggest challenge to the successful use of use-case modeling and recommend how to over..

How much cash did blandings pay out to bondholders : Blandings Glassware Company issues $1,000,000 of 8%, 10-year bonds at 98 on February 28, 2015. The bond pays interest on February 28 and August 31. On August 31, 2015, how much cash did Blandings pay out to bondholders?

What is the updated principal balance : Trek Holidays Company signed a 9%, 10-year note for $150,000. The company paid $1,900 as the instalment for the first month. After the first payment, what is the updated principal balance?

Remote access for small offices and teleworkers : Case Study 2: Cisco's Remote Access Go to Cisco's Website and read, "How Cisco IT Provides Remote Access for Small Offices and Teleworkers", located at http://bit.ly/MkvlbA. According to the study, an IDC forecast from December 2007, expected the glo..

Uses the straight-line method to amortize the bond premium : On January 1, 2015, Carter Sales issued $15,000 in bonds for $15,800. They were 8-year bonds with a stated rate of 9%, and pay semi annual interest. Carter Sales uses the straight-line method to amortize the bond premium. On June 30, 2015, when Carte..

Business continuity planning : Imagine that you are trying to receive funding for select planning projects. Compare and contrast the attributes of business continuity and disaster recovery plans, and suggest the primary ways in which you would explain these differences to your emp..

Calculate amount at which lincoln should record note payable : Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2016, assuming that an interest rate of 10% properly reflects the time value of money in this situation.

Prepare the journal entries to record the transactions : Rocky Guide Service provides guided 1–5 day hiking tours throughout the Rocky Mountains. Wilderness Tours hires Rocky to lead various tours that Wilderness sells. Prepare the journal entries to record the transactions above. (If no entry is required ..

Use the traditional approach : Outline the primary ways in which the traditional approach to modeling a use case differs from an object-oriented approach. Develop a scenario in which you would use the traditional approach over the object-oriented approach, and explain your reasons..

User Account

All Pages