Brief Exercise 14-1
Whispering Corporation issues $410,000 of 9% bonds, due
...
Brief Exercise 14-1
Whispering Corporation issues $410,000 of 9% bonds, due
in 11 years, with interest payable semiannually. At the time of
issue, the market rate for such bonds is 10%.
Compute the issue price of the bonds
Issue price of the bonds
Brief Exercise 14-6
On January 1, 2017, Marigold Corporation issued $650,000 of 9%
bonds, due in 10 years. The bonds were issued for $609,499, and
pay interest each July 1 and January 1. Marigold uses the
effective-interest method.
Prepare the company’s journal entries for (a) the January 1
issuance, (b) the July 1 interest payment, and (c) the December
31 adjusting entry. Assume an effective-interest rate of 10%.
No. Date Account Titles and Explanation Debit Credit
Brief Exercise 14-8
Larkspur Corporation issued $570,000 of 9% bonds on November
1, 2017, for $603,210. The bonds were dated November 1, 2017,
and mature in 8 years, with interest payable each May 1 and
November 1. Larkspur uses the effective-interest method with an
effective rate of 8%.
Prepare Larkspur’s December 31, 2017, adjusting entry
Brief Exercise 14-11
Sunland Corporation issued a 5-year, $73,000, zero-interestbearing
note to Brown Company on January 1, 2017, and
received cash of $41,422. The implicit interest rate is 12%.
Prepare Sunland’s journal entries for (a) the January 1 issuance
and (b) the December 31 recognition of interest.
Brief Exercise 14-12
Sheridan Corporation issued a 4-year, $43,000, 4% note to
Greenbush Company on January 1, 2017, and received a
computer that normally sells for $34,822. The note requires
annual interest payments each December 31. The market rate of
interest for a note of similar risk is 10%.
Prepare Sheridan’s journal entries for (a) the January 1 issuance
and (b) the December 31 interest.
Brief Exercise 14-15
At December 31, 2017, Nash Corporation has the following
account balances:
Bonds payable, due
January 1, 2026 $1,900,000
Discount on bonds
payable 77,000
Interest payable 71,000
Show how the above accounts should be presented on the
December 31, 2017, balance sheet, including the proper
classifications
Exercise 14-9 (Part Level Submission)
On June 30, 2017, Ayayai Company issued $4,400,000 face
value of 13%, 20-year bonds at $4,731,010, a yield of 12%.
Ayayai uses the effective-interest method to amortize bond
premium or discount. The bonds pay semiannual interest on
June 30 and December 31.
(a)
Prepare the journal entries to record the following
transactions.
(1)
The issuance of the bonds on June 30, 2017.
(2)
The payment of interest and the amortization of the
premium on December 31, 2017.
(3)
The payment of interest and the amortization of the
premium on June 30, 2018.
(4)
The payment of interest and the amortization of the
premium on December 31, 2018.
The following items are found in the financial statements.
Indicate how each of these items should be classified in the
financial statements.
Classification
(a) Discount on bonds payable
(b) Interest expense (credit balance)
(c) Unamortized bond issue costs
(d) Gain on repurchase of debt
(e)
Mortgage payable (payable in equal amounts
over next 3 years)
(f)
Debenture bonds payable (maturing in 5
years)
(g) Notes payable (due in 4 years)
(h) Premium on bonds payable
(i) Bonds payable (due in 3 years)
Exercise 14-10 (Part Level Submission)
On January 1, 2017, Riverbed Company sold 12% bonds
having a maturity value of $410,000 for $441,084, which
provides the bondholders with a 10% yield. The bonds are
dated January 1, 2017, and mature January 1, 2022, with
interest payable December 31 of each year. Riverbed
Company allocates interest and unamortized discount or
premium on the effective-interest basis.
(a)
Prepare the journal entry at the date of the bond issuance
Answers: 3
Business, 22.06.2019 15:20
Record the journal entry for the provision for uncollectible accounts under each of the following independent assumptions: a. the allowance for doubtful accounts before adjustment has a credit balance of $500. b. the allowance for doubtful accounts before adjustment has a debit balance of $250. c. assume that octoberʼs credit sales were $70,000. uncollectible accounts expense is estimated at 2% of sales. smith, gaylord n.. excel applications for accounting principles (p. 51). cengage textbook. kindle edition.
Answers: 1
Business, 22.06.2019 19:20
Six years ago, an 80-kw diesel electric set cost $160,000. the cost index for this class of equipment six years ago was 187 and is now 194. the cost-capacity factor is 0.6. the plant engineering staff is considering a 120-kw unit of the same general design to power a small isolated plant. assume we want to add a precompressor, which (when isolated and estimated separately) currently costs $13291. determine the total cost of the 120-kw unit. (hint: skip $ and comma symbols)
Answers: 3
Business, 23.06.2019 01:30
Akika corporation started as a small firm and has grown substantially in the past decade. its interests span from electronics to real estate and aviation. akika's board of directors have now decided to create independent business units for and categorize the actions performed under each domain. each business unit will have distinct roles and responsibilities. which of the 14 principles of fayol does this exemplify?
Answers: 3
Business, 23.06.2019 11:00
How do you write a business plan ? i will give you a brainliest.
Answers: 1
English, 11.03.2020 22:44
Computers and Technology, 11.03.2020 22:44
Mathematics, 11.03.2020 22:44
Computers and Technology, 11.03.2020 22:44
Mathematics, 11.03.2020 22:44
Mathematics, 11.03.2020 22:44
Spanish, 11.03.2020 22:44