Business, 28.02.2020 01:20 babykate66

Saverin Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin Inc. issued $62,500,000 of 10-year, 9% bonds at a market (effective) interest rate of 8%, receiving cash of $66,747,178. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.

2. Journalize the entries to record the following:

a. The first semiannual interest payment on December 31, 2016, and the amortization of the bond premium, using the straight-line method.

b. The interest payment on June 30, 2017, and the amortization of the bond premium, using the straight-line method.

3. Determine the total interest expense for 2016.

4. Will the bond proceeds always be greater than the face amount of the bonds when the contract rate is greater than the market rate of interest?

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 18:20

Which of the following is intended to demonstrate to an employer the importance of cooperating with workers? a. a collective agreement. b. a stock offer. c. a boost in production. d. a work slowdown. 2b2t

Answers: 2

Answer

Business, 22.06.2019 19:30

Exercise 4-9presented below is information related to martinez corp. for the year 2017.net sales $1,399,500 write-off of inventory due to obsolescence $80,440cost of goods sold 788,200 depreciation expense omitted by accident in 2016 43,600selling expenses 65,800 casualty loss 53,900administrative expenses 53,500 cash dividends declared 43,300dividend revenue 22,100 retained earnings at december 31, 2016 1,042,400interest revenue 7,420 effective tax rate of 34% on all items exercise 4-9 presented below is information relateexercise 4-9 presented below is information relate prepare a multiple-step income statement for 2017. assume that 61,500 shares of common stock are outstanding. (round earnings per share to 2 decimal places, e.g. 1.49.)prepare a separate retained earnings statement for 2017. (list items that increase retained earnings first.)

Answers: 2

Answer

Business, 23.06.2019 00:00

Both renewable and nonrenewable resources are used within our society. how do the uses of nonrenewable resources compare to the uses of renewable resources?

Answers: 1

Answer

Business, 23.06.2019 06:10

Which of the following functions finds the highest value of selected inputs? a. high b. hvalue c. max

Answers: 3

Answer

You know the right answer?

Saverin Inc. produces and sells outdoor equipment. On July 1, 2016, Saverin Inc. issued $62,500,000...

Questions