What is allies book value of bonds payable

Assignment Help Accounting Basics
Reference no: EM133094246

Question - On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. It was sold at $464,000 with effective interest rate of 9%.  On 1/1/2020, Choco purchased all of Allie's bond for $532,000 cash with effective interest at 7% and Allie's bonds payable has been effectively retired.

Required -

1) What is Allies' book value of $500,000 bonds payable on 1/1/2020?

2) Prepare a journal entry that Choco will record on 1/1/2020 regarding purchase of Allie's bond.

3) Compute the consolidated gain or loss on a consolidated income statement for at the end of 2020.

4) Prepare a journal entry that Allie will record for bond interest expense on 12/31/2020.

Reference no: EM133094246

Questions Cloud

Calculate the ucc at the end of year six : Suppose your firm is considering buying a van costing $85,000. Calculate the UCC at the end of year 6
Explain the reasons for dissatisfaction : Despite lots of attention, money, and effort, performance appraisals remain an area with which few managers or employees are satisfied.
Simultaneous language acquisition : Simultaneous language acquisition is the development of two languages prior to the age of 3.
Managerial implications learned from the social network : Identify and briefly describe 3 managerial implications learned from The Social Network (2010)
What is allies book value of bonds payable : On 1/1/2019, Allie Company issued bonds payable of $500,000 at 8%. What is Allies' book value of $500,000 bonds payable on 1/1/2020
Balance between cooperation and competition : Explain how the gap in the market model can help Tesla and Daimler AG to launch their new electric sprinter van in other geographic locations in a completely di
Interview one criminal justice system professional : Interview at least one criminal justice system professional - Most criminal justice professionals are happy to help if you identify you
Aware of during the selection process : Are there any legal considerations to be aware of during the selection process.
Conducting an effective performance appraisal : 'There are many challenges associated with conducting an effective performance appraisal' Discuss. Please Give Points And Elaborate It

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd