Required information [The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date January 1, Year 1 Cash Interest Amortization Balance $ 48,813
Q: Required information [The following information applies to the questions displayed below.] Dain's…
A:
Q: Internal control at any organization is important because: Multiple Choice OIt reduces the chances…
A: Internal control is a set of procedures incorporated in the operational activities of business to…
Q: Instructions (a) Prepare a schedule showing the computation of cost of goods sold for 2019. (b)…
A: Introduction: - Income statement shows company's income and expenses over a period of time.…
Q: 3 Water Sports Ltd. pays $360 less 25% for a backyard above-ground pool kit. Overhead expenses are…
A: A markdown rate is the difference between the highest price dealers can charge for a product and the…
Q: On June 30 (the end of the period), Brown Company has a credit balance of $2,250 in Allowance for…
A: Allowance for Doubtful Accounts is maintained for upcoming estimated uncollectible accounts…
Q: A group of investors is intent on purchasing a publicly traded company and wants to estimate the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: menu or by defining the brand in other ways first or let it evolve as you go? Why?
A: When creating a restaurant concept from scratch, there are many factors that need to be considered…
Q: The current spot rate between the U.S. dollar and the Swedish krona Is $1 = 6.8682 krona. Assume the…
A: PURCHASE POWER PARITY Purchasing Power Parity theory is tells about the price differentials…
Q: Sweet Acacia Company's overhead rate was based on estimates of $182,400 for overhead costs and…
A: TOTAL OVERHEAD VARIANCE Total Overhead cost variance or Overall (or net) overhead variance is the…
Q: What is compare and contrast
A: The concept of comparing and contrasting on associated with looking at two things in order to…
Q: John is trying to decide whether to contribute to a Roth IRA or a traditional IRA. He plans on…
A: Traditional IRA is the individual retirement plan in which tax on the withdrawl is paid on the…
Q: Calculate the sales charge in dollars and sales charge percent for the mutual fund round percents to…
A:
Q: Cooperton Mining just announced it will cut its dividend from $3.82to $2.45 per share and use the…
A: COST OF EQUITY The Cost of Capital is the most important and controversial area in Financial…
Q: In 1997, many East Asian currencies suddenly and dramatically devalued. What is the percentage…
A: Formula to calculate % change (Increase ) in investment value : (Revised investment value - Intial…
Q: The records of Penny Co. indicated that $406,070 of merchandise should be on hand on December 31.…
A: Inventory Shrinkage Value = $406,070 - $402,820 = $3,250
Q: If a company needs 3B, why would they issue a bond for 6B? What are the benefits of issuing 6 vs 3?
A: The benefits of issuing a bond for 6B rather than 3B is that the company can use the extra 3B to…
Q: Income Statement Year Ended December 31, 20X6 ale ost of goods sold ross Profit perating Expenses…
A: Working capital is necessary for maintaing the liquidity of the company and smooth operations of the…
Q: Liabilities & Shareholders' Equity Account Payable Operating expenses payable Income taxes payable…
A: Formula: Equity ratio=Total Shareholders' EquityTotal assets
Q: Calculate the accured interest in dollars, and the total proceeds in dollars of the bond sale round…
A:
Q: The partnership agreement provides of Xx, YY and ZZ provides for the year end allocation of net…
A: There is the possibility that partners will receive a guaranteed salary, and any remaining profit or…
Q: On July 2, 2021, Corso Inc. purchased $450,000 of Bere Corp. 5% bonds at a price of 416,528 to yield…
A: Bonds are the securities which are issued by the entity for raising funds and investors get the…
Q: Masters required 30% of continental furniture Equity methods between the 20 and 50, $400,000…
A: When a company acquires between 20% to 50% of the shares of another entity, the acquiring entity is…
Q: The following table shows the balance sheet for United Community Bank. Compute the value of the…
A: Anything the business owns that has a market value and can be exchanged for money is considered an…
Q: Martin Services Company provides its employees vacation benefits and a defined contribution pension…
A: Introduction: The journal entry is used to record details about transactions that take place…
Q: A trustee has been appointed for Pace Incorporated, which is being liquidated under Chapter 7 of the…
A: The sales on account are recorded under accounts receivables and purchases on account are recorded…
Q: Point, Inc. produces men's shirts. The following budgeted and actual amounts are for 2019: Cost…
A: Budget: It implies to a financial estimate that shows the expected numbers related to different…
Q: Paid $500 cash for minor repairs to the company's computer. Note: Enter debits before credits. Date…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: cost of $63,616 has an estimated residual value of $5,755 and an estimated life of 4 years or 16,212…
A: In units-of-activity method, depreciation expense is calculated on the basis of usage of units .…
Q: Kellen dies. Kellen's wife died 5 years ago. Kellen's gross estate is valued at $12 million. His…
A: Estate tax refers to the amount of tax levied by the federal government of US on the transfer of…
Q: BGP Electrical Supply is developing its annual financial statements at December 31, current year.…
A: The cash flow statement is the one of the financial statements of the business. The activities of…
Q: Quality Guard, which used a standard cost accounting system, manufactured 200,000 boat fenders…
A: 1. Computation of variances DM Price variance = Actual quantity x ( Standard rate - Actual rate)…
Q: The Millard Division's operating data for the past two years are provided below: Year 1 Year 2…
A: RETURN ON INVESTMENT Return on investment is the ratio between Net Operating Income & Average…
Q: Write out the journal entry that is created once an entry is made in Invoice Window.
A: Invoice: It implies to a document of commercial nature that has details related to what reflects on…
Q: A revenue agent determined that Ms. Osaka underpaid income tax by $48,100 and concluded that $9,200…
A: Introduction:- The following basic information as follows:- A revenue agent determined that Ms.…
Q: Erie Company manufactures an MP3 player called the Jogging Mate. The company uses standards to…
A: In budgeting or management accounting, variance analysis is the study of differences between actual…
Q: List the system defaults account in Quick Books and explain the purpose of any FOUR default accounts…
A: 1. Accounts Payable: The Accounts Payable account is used to track money owed by the business to its…
Q: Below are the Consumer Price Index inflation rates each year for the United States and Japan. Also…
A: 1.Purchasing power parities (PPPs) are the rates of currency conversion that try to equalise the…
Q: The following are call option premiums and futures settlement prices for ICE cotton. These pric were…
A: A call option is a contract where the call holder has the right but not the obligation to purchase…
Q: Purchased $1,100 of computer supplies on credit from Harris Office Products. Note: Enter debits…
A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…
Q: e Millard Division's operating data for the past two years are provided below: Year 1 Year 2…
A: Answer :Calculation of sales for year 2 Margin = Return on on investment / Turnover Margin = 36%/3…
Q: Variafull Company presented the following data for 2019 and 2020: Cost per unit: Production and…
A: The question has asked to prepare the reconcile the income statement between the direct costing and…
Q: Which of the following statements is true? A balanced scorecard contains both customer and internal…
A: Solution:- Discussion of the following statements true or false as false
Q: A property was purchased for $6568.00 down and payments of $1297.00 at the end of every year for 6…
A: We will use the concept of time value of money. The interest rate is compounded monthly and hence we…
Q: Morray Corporation had the following transactions. Classify each of these transactions by type of…
A: INTRODUCTION: The cash flow statement provides information on a company's operations, sources of…
Q: Which of the following would be an argument for using the gross cost of plant and equipment as part…
A: Operating assets are the assets of the entity which are acquired for or used in the operations of…
Q: Determine the extent to which he can deduct each payment on his Form 1040.
A: Mr. Tolan has made various Payments in the year 2022, To check which are deductible and which are…
Q: Determine the amount of the dividends received deduction in each of the following instances. In all…
A: Dividend received deduction is a federal tax deduction in the United states which is given to…
Q: te Light is a residential lighting company that produces lighting for dream homes. In the prior…
A: Company make huge investment and due to heavy investment made by the company , company generate…
Q: Bong K. Day opened Bong Creations, Inc. a small, manufacturing company at the beginning of the year.…
A: Variable costing doesn't consider fixed cost adjustment whereas absorption costing does so. The…
Q: Stardust Furniture Store sells "low end" furniture and uses the installment method for revenue…
A: Instalment method of recognizing revenue is adopted by the firm which sells goods on instalment…
Please include the formula needed to know the coupon rate and any rules that there may be.
Please highlight the answer if you can, thank you.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- On Jan. 1, Year 1, Foxcroft Inc. issued 100 bonds with a face value of $1,000 for $104,000. The bonds had a stated rate of 6% and paid interest semiannually. What is the journal entry to record the issuance of the bonds?[The following information applies to the questions displayed below.] On January 1 of this year, Olive Corporation issued bonds. Interest is payable once a year on December 31. The bonds mature at the end of four years. Olive uses the effective-interest amortization method. The partially completed amortization schedule below pertains to the bonds: Date Cash Interest Amortization Balance 1/1/20x1 $ 52,833 12/31/20x1 $ 5,200 $ 5,019 $ 181 52,652 12/31/20x2 ? ? ? 12/31/20x3 ? ? 217 52,454 ? 12/31/20x4 ? 4,963 ? 52,000 Required: 1. Complete the amortization schedule. Note: Enter all your values in positive. Round your final answers to nearest whole dollar amount. Date 1/1/20x1 12/31/20x1 Cash Interest Amortization Balance $ 52,833 $ 5,200 $ 5,019 $ 181 $ 52,652 12/31/20x2 $ 52,454 12/31/20x3 $ 217 12/31/20x4 4,963 $ 52,000On January 1, Year 1, Twain Corporation sold $620,000 of its own 5 percent, 10-year bonds. Interest is payable annually on December 31. The bonds were sold to yield an effective interest rate of 6 percent. Twain uses the effective interest rate method. The bonds sold for $574,368. Requireda. Prepare the journal entry for the issuance of the bonds.b. Prepare the journal entry for the amortization of the bond discount and the payment of the interest at December 31, Year 1. (Assume effective interest amortization.)c. Prepare the journal entry for the amortization of the bond discount and the payment of interest on December 31, Year 1. (Assume straight-line amortization.)d. Calculate the amount of interest expense for Year 2. (Assume effective interest amortization.) e. Calculate the amount of interest expense for Year 2. (Assume straight-line amortization.)
- Sikes Corporation, whose annual accounting period ends on December 31, issued the following bonds: Date of bonds: January 1, 2021 Maturity amount and date: $130,000 due in 10 years (December 31, 2030) Interest: 10 percent per year payable each December 31 Date issued: January 1, 2021 Required: 1. For each of the three independent cases that follow, provide the amounts to be reported on the January 1, 2021, financial statements immediately after the bonds are issued. TIP: See Exhibit 10.6 for an illustration distinguishing Bonds Payable from their carrying value. (Deductions should be indicated by a minus sign.) January 1, 2021-Financial statements: a. Bonds payable b. Unamortized premium (or discount) c. Carrying value Case A (At 100) Case B (At 95) Case C (At 103)On January 1, Year 1, Hackman Corporation issued $600,000 face value 6% bonds dated January 1, Year 1, for $621,430. The bonds pay interest semiannually on June 30 and December 31 and are due December 31, Year 5. Hackman uses the straight-line amortization method. Required: Record the issuance of the bonds and the first two interest payments. Record the issuance of the bonds on January 1 and the first two interest payments on June 30 and December 31.On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Wayne uses the straight-line method to amortize bond discounts and premiums. Assuming Wayne issued the bonds for 102.5, what is the amount of interest expense that will be reported on the income statement for the year ending December 31, Year 1? 2. On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Wayne uses the straight-line method to amortize bond discounts and premiums. 2.Assuming Wayne issued the bonds for 102.5, what is the amount of interest expense that will be reported on the income statement for the year ending December 31, Year 1? 3.Perry Corporation was established on January 1, Year 1 when it issued 20,000 shares of $50 par, 5 percent, cumulative…
- Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is payable annually on December 31. Metlock uses the straight-line method to amortize bond premium or discount. 1.Prepare the journal entry to record the issuance of the bonds. 2.Prepare the journal entry to record the payment of interest and the related amortization on july 1, 2021. 3.Prepare the journal entry to record the accrual of interest and the related amortization on December 31, 2021.On September 1, Year 1, Parsons Company purchased $84,000 of 10-year, 7% government bonds at 100 plus accrued interest. The semiannual interest payment dates are June 30 and December 31. Interest computations are done by the month. Required: a. Journalize the entry for the bond purchase. b. Journalize the receipt of interest on December 31 of the first year. c. Journalize the sale of the bonds on February 1 of the second year for $82,000 plus accrued interest. If an amount box does not require an entry, leave it blank. a. Year 1 Sept. 1 b. Year 1 Dec. 31 c. Year 2 Feb. 1Jackson, Inc.’s fiscal year ends December 31. Selected transactions for the period 20-1 through 20-8 involving bonds payable issued by Jackson are as follows: 20-1 Transactions: Oct. 31 Issued $600,000 of 10-year, 7%, callable bonds dated October 31, 20-1, for $612,000. Interest is payable semiannually on October 31 and April 30. The bond indenture provides that Jackson is to pay to the trustee bank $20,000 by May 15 of each year (except the tenth year) as a sinking fund for the retirement of the bonds on call or at maturity. Dec. 31 Made the adjusting entry for interest payable and amortized two months’ premium on the bonds (straight-line method). 20-2 Transactions: Jan. 2 Reversed the adjusting entry for interest payable and bond premium amortization. Apr. 30 Paid the semiannual interest on the bonds and amortized six months’ premium. May 15 Paid the sinking fund trustee $20,000. Oct. 31 Paid the semiannual interest on the bonds and amortized six months’…
- On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,627,273 1 320,000 331,364 11,364 6,638,637 2 320,000 331,932 11,932 6,650,569 3 320,000 332,528 12,528 6,663,097 4 320,000 333,155 13,155 6,676,252 5 320,000 333,813 13,813 6,690,065 6 320,000 334,503 14,503 6,704,568 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 320,000 389,107 69,107 7,851,247 39 320,000 392,562 72,562 7,923,809 40 320,000 396,191 76,191 8,000,000 Required: What is the face amount of the bonds? What is the initial selling price of the bonds? What is the term to maturity in years? Interest is determined by what approach? What is the stated annual interest rate? What is the effective annual interest rate? What is the total cash interest paid over the term to maturity?…On January 1, Year 1, Bell Corporation issued $203,000 of 10-year, 6 percent bonds at their face amount. Interest is payable on December 31 of each year with the first payment due December 31, Year 1. RequiredPrepare all the general journal entries related to these bonds for Year 1 and Year 2. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)On January 1, Year 1, Wayne Company issued bonds with a face value of $635,000, a 5% stated rate of interest, and a 10-year term. Interest is payable in cash on December 31 of each year. Wayne uses the straight-line method to amortize bond discounts and premiums. Assuming Wayne issued the bonds for 102.0, what is the amount of interest expense that will be reported on the income statement for the year ending December 31, Year 1? Multiple Choice $30,480 $31,750 $33,020 $12,700