Business, 05.02.2020 13:49 njx

On june 30, 2017, shamrock company issued $4,800,000 face value of 13%, 20-year bonds at $5,161,102, a yield of 12%. shamrock 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.
(b)show the proper balance sheet presentation for the liability for bonds payable on the december 31, 2018, balance sheet.
(c) provide the answers to the following questions.
a. what amount of interest expense is reported for 2018?
b. will the interest expense reported in 2018 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used?
c. determine the total cost of borrowing over the life of the bond.
d. will the total interest expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used? the total amount of bond interest expense recognized on july 1, 2019, would be closest to

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 06:00

Cash flow is often a problem for small businesses. how can an entrepreneur increase cash flow? a) locate lower-priced suppliers. b) forego sending in estimated tax payments to the irs c) shorten the terms on a bank loan to pay it off more quickly d) sell more low-margin items.

Answers: 1

Answer

Business, 22.06.2019 09:50

Is exploiting a distinctive competence or improving efficiency for competitive advantage. (a) cooptation (b) coalition (c) competitive intelligence (d) competitive aggression (e) smoothing

Answers: 1

Answer

Business, 22.06.2019 13:10

Trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $4,538. the fica tax for social security is 6.2% of the first $118,500 earned each calendar year, and the fica tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $680.70. his net pay for the month is .

Answers: 1

Answer

Business, 22.06.2019 16:50

According to ceo heidi ganahl, camp bow wow requires a strong and consistent corporate culture to keep all local franchise owners "on the same page" and to follow a common template for the business and brand. this culture could become detrimental over time because: (a) strong consistent cultures are inflexible and incapable of adapting to environmental change (b) strong consistent cultures are too flexible and capable of adapting to environmental change (c) strong consistent cultures don’t perform well in any environment (d) the passing of time provides stability and predictability for businesses

Answers: 2

Answer

You know the right answer?

On june 30, 2017, shamrock company issued $4,800,000 face value of 13%, 20-year bonds at $5,161,102,...

Questions