Business, 19.10.2021 01:00 sjanem03

On January 1, 2021, Ouachita Airlines issued $400,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Ouachita Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $335,000 as determined by their fair value in the over-the-counter market. None of the change in fair value was due to a change in the general (risk-free) rate of interest. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1). (Use appropriate factor(s) from the tables provided.) Required:
1a . Determine the price of the bonds at January 1, 2021,
1b . Prepare the journal entry to record their issuance.
2. Prepare the journal entry to record interest on June 30, 2021 (the first interest payment), then prepare the journal entry to record interest on December 31, 2021 (the second interest payment). and also prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2021, balance sheet.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 22:30

True or false: on january 1, year one, the epstein corporation buys a plot of land with a four-story office building. the company believes the building is worth $1.9 million and has an estimated life of twenty years (with no anticipated residual value). the straight-line method is used. the land has an assessed value of $100,000. because the seller was interested in a quick sale, epstein was able to buy this land and building for $1.7 million. depreciation expense to be recognized in year one is $80,750.

Answers: 3

Answer

Business, 22.06.2019 03:00

Match each item to check for while reconciling a bank account with the document to which it relates. (there's not just one answer) 1. balancing account statement 2. balancing check register a. nsf fees b. deposits in transit c. interest earned d. bank errors

Answers: 3

Answer

Business, 22.06.2019 20:00

Question 6 of 102 pointswhich situation shows a constant rate of change? oa. the number of tickets sold compared with the number of minutesbefore a football gameob. the height of a bird over timeoc. the cost of a bunch of grapes compared with its weightod. the outside temperature compared with the time of day

Answers: 1

Answer

Business, 22.06.2019 21:50

Search engines generate revenue through pay-per-click (each time a user clicks a link to a retailer’s website); pay-per-call (each time a user clicks a link that takes the user to an online agent waiting for a call); or pay-per-conversion (each time a website visitor is converted to a customer)

Answers: 3

Answer

You know the right answer?

On January 1, 2021, Ouachita Airlines issued $400,000 of its 20-year, 8% bonds. The bonds were price...

Questions