Business, 21.03.2020 06:04 railfan98

On January 1, the first day of its fiscal year, Ebert Company issued $11,000,000 of 10-year, 10% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 12%, resulting in Ebert Company receiving cash of $9,738,256. The company uses the interest method.
Required:
A. Journalize the entries to record the following transactions. Refer to the Chart of Accounts for the exact wording of account titles.
A1. Sale of the bonds.
A2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar.
A3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar.
B. Compute the amount of the bond interest expense for the first year.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 20:00

Jorge is a manager at starbucks. his operational plan includes achieving annual sales of $4,000,000 for his store. with only one month left to end of the fiscal year, jorge realizes that he won't reach his annual sales goal. what are his options?

Answers: 2

Answer

Business, 22.06.2019 00:50

Hanna intends to give her granddaughter, melodee, her antique hat pin. this heirloom has been kept under lock and key in the wall vault in the library of hanna's house in virginia. the hat pin is currently the only item in the vault. when hanna is visiting melodee in connecticut, hanna gives melodee the only key to the vault. melodee is grateful for the present and excitedly accepts. in this situation has there been a completed gift?

Answers: 3

Answer

Business, 22.06.2019 03:00

Fanning books buys books and magazines directly from publishers and distributes them to grocery stores. the wholesaler expects to purchase the following inventory: april may june required purchases (on account) $ 111,000 $ 131,000 $ 143,000 fanning books accountant prepared the following schedule of cash payments for inventory purchases. fanning books suppliers require that 85 percent of purchases on account be paid in the month of purchase; the remaining 15 percent are paid in the month following the month of purchase. required complete the schedule of cash payments for inventory purchases by filling in the missing amounts. determine the amount of accounts payable the company will report on its pro forma balance sheet at the end of the second quarter.

Answers: 2

Answer

Business, 22.06.2019 06:00

Josie just bought her first fish tank a 36 -gallon glass aquarium, which she’s been saving up for almost a year to buy. for josie, the fish tank is most likely what type of purchase

Answers: 1

Answer

You know the right answer?

On January 1, the first day of its fiscal year, Ebert Company issued $11,000,000 of 10-year, 10% bon...

Questions