Business, 12.05.2021 04:50 125712

On January 1, 2022, Blue Company issued $3,400,000 face value, 7%, 10-year bonds at $3,650,227. This price resulted in a 6% effective-interest rate on the bonds. Blue uses the effective-interest method to amortize bond premium or discount. The bonds pay annual interest on each January 1. (a) Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e. g. 125. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 1. The issuance of the bonds on January 1, 2022. 2. Accrual of interest and amortization of the premium on December 31, 2022. 3. The payment of interest on January 1, 2023. 4. Accrual of interest and amortization of the premium on December 31, 2023.

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 20:40

Aggart technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. the stock issue would have no effect on total assets, the interest rate taggart pays, ebit, or the tax rate. which of the following is likely to occur if the company goes ahead with the stock issue? a. the roa will decline.b. taxable income will decline.c. the tax bill will increase.d. net income will decrease.e. the times-interest-earned ratio will decrease

Answers: 1

Answer

Business, 23.06.2019 02:10

Which of the following best explains the purpose of a supply schedule? a. to calculate how much time it takes for distribution. b. to indicate how supply and demand relate to price. c. to show the relationship between quantity supplied and prices. d. to demonstrate how the supply decreases as price increases.

Answers: 1

Answer

Business, 23.06.2019 04:00

Estimate the prouduct sovle using an area modelestimate the product you solve using an area model and the standard algorithm.remeber to express your products in the standard form

Answers: 3

Answer

Business, 23.06.2019 17:20

Economic analysis indicates that it will be politically more attractive to a. enact expansionary fiscal policy during a recession than to enact restrictive fiscal policy during an economic expansion. b. enact expansionary fiscal policy during an economic expansion than to enact restrictive fiscal policy during a recession. c. enact restrictive fiscal policy during an economic expansion than to enact expansionary fiscal policy during a recession. d. raise taxes than to increase spending.

Answers: 3

Answer

You know the right answer?

On January 1, 2022, Blue Company issued $3,400,000 face value, 7%, 10-year bonds at $3,650,227. This...

Questions