Bond interest and discount amortization.

scooters corporation issued $900,000 of 7% bonds on october 1, 2016, due on october 1, 2021. the interest is to be paid twice a year on april 1 and october 1. the bonds were sold to yield 9% effective annual interest. bu curriculum corporation closes its books annually on december 31.

instructions

(a) complete an amortization schedule for the above bond (for all periods) in a similar format as below. (round all answers to the nearest dollar.) use the effective-interest method.

date

credit

cash

debit

interest expense

credit

bond discount

carrying amount of bonds

oct. 1, 2016

use the pv formula in excel; see posted bond excel sheet in the classroom

apr. 1, 2017

….continue schedule (use excel)

(b) prepare the journal entries for the following:

1. october 1, 2016 bond issue

2. adjusting entry for december 31, 2016 (adjusting entry should cover 2 months)

3. april 1, 2017 entry

4. october 1, 2017 entry

5. adjusting entry from december 31, 2017

(c) compute the interest expense to be reported in the income statement for the year

ended december 31, 2016 and december 31, 2017.

(d) complete an amortization schedule for the above bond (for all periods) using the straight-line amortization method (entries are not required).

This problem has been solved! see the answerchapter 19 problem #8. quality and financial control (connect, perform)part one: geometrica designs and builds domes and space frames for large buildings. while the company had developed quality standards over time to respond to different client problems and training needs, it lacked a unified quality system, and its global client base wanted assurance that geometrica met an established international standard for quality. which of the following was an appropriate step for this company to take? a) reform its accounting and financial reporting systems to comply with sarbanes-oxleyb) establish and document a quality management system to comply with iso 9000management at workyou are the new fleet manager at xpressship, a package delivery company. as your first project, your boss has asked that you to look into implementing an electronic monitoring system for the fleet of 2,000 trucks your company owns. a recent internal audit on maintenance and repair costs on the company’s vehicles revealed while maintenance was performed regularly on the trucks, mileage or use had not been taken into account. this resulted in approximately $20,000 of unneeded repairs. you know that telematics have been used by other companies with fleets of cars or trucks and it will allow your company to not only track mileage and use, but also part replacement needs, vehicle oil pressure, and drivers’ speed and real time location. tracking these items can reduce maintenance costs while improving efficiency. you find that a simple computer can be installed in each vehicle. when the drivers return at the end of the day, the telematics information from each vehicle will be uploaded to a master computer where a software program will generate a report with results on the variables you have selected.early one morning as you are getting a cup of coffee, a few drivers that have been with the company for many years approach you with some concerns. eldon, the most senior driver says, “i heard you’re installing some type of computer to track our driving. my buddy works over at parcel and post package delivery and he said they’ve got these computers, too. he said managers are writing people up and firing drivers for speeding or not wearing seat belts. are you going to do that to us, too? ”part two: as a manager, which of the following statements would be effective in maintaining a positive relationship with company drivers? check all that apply.a) at this time, xpressship will be using telematics to monitor maintenance and repair needs, not drivers’ motoring habitsb) although the company isn’t doing so now, when xpressship begins to monitor driver motoring habits, the company will encourage them to keep a separate daily log where they can document any unusual circumstancesc) while xpressship could monitor things like speed, location, and idle time, the company trusts their drivers and will not be using that data in disciplinary decisionsd) xpressship executives are happy with their technology and believe that implementation is ideal for your organization

For the past six years, the price of slippery rock stock has been increasing at a rate of 8.21 percent a year. currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. what is the dividend yield? 3.20 percent 2.75 percent 3.69 percent

Alarge tank is filled to capacity with 500 gallons of pure water. brine containing 2 pounds of salt per gallon is pumped into the tank at a rate of 5 gal/min. the well-mixed solution is pumped out at the same rate. find the number a(t) of pounds of salt in the tank at time t.