LO 4Exercise 10-16A Straight-line amortization for bonds issued at a discountOn January 1, 2011, Akers Co. issued $200,000 of five-year, 6 percent bonds at 96. Interest ispayable annually on December 31. The discount is amortized using the straight-line method.RequiredPrepare the journal entries to record the bond transactions for 2011 and 2012.

SOLUTION:- Face Value of bonds = $ 200,000 issue price of the bond = $ 96 no of bonds issued =…

Answered: Prepare the journal entries to record…

Business

Accounting

Prepare the journal entries to record the bond transactions for 2011 and 2012.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

For a standard U.S. Treasury bond, when are the following characteristics of the bond determined? The amounts of any interest payments. The dates of any interest payments. The bond's market yield. The bond's market price. The amount that the Treasury returns to the bondholder, when the bond matures. The price that the bondholder pays to the Treasury to acquire the bond. The maturity date. 1. 2. Fixed before the bonds are sold and does not change. Fixed when the bonds are sold and does not change. 3. Fluctuates continually.
Demonstrate how to identify and account for debt investments classified for reporting purposes as available-for-sale securities.
How are the bonds issued, what is the appropriate journal entry? Provide example for issuing bonds. How do we determine the present value of a bond when market rate differs from its contract rate? How do we record the interest payment (provide examples for both premium and discount amortization), using the effective interest method? What is the difference between the effective interest method and the straight line method when amortizing either a discount or a premium? Cite and give credit to the author that you are citing.
Write a short note on Securities and Exchange Commission.
I'm trying to figure out what dates I need to use for my journal entries. I have already put July 1 and december 31 in my 2019 journal section and then june 30 for my 2020 section and it keeps telling me I'm wrong I don't get it. My numbers are right just not my dates. Effective Interest Premium Amortization Ex. 14.08 " Prepare the journal entries to record the issue of the bonds on July 1, 2019, and the interest payments on December 31, 2019, and June 30, 2020." Polk Incorporated issued $200,000 of 13% bonds on July 1, 2019, for $206,801.60. The bonds were dated January 1, 2019, pay interest on each June 30 and December 31, are due December 31, 2020, and were issued to yield 12%. Polk uses the effective interest method of amortization. Required: Prepare the journal entries to record the issue of the bonds on July 1, 2019, and the interest payments on December 31, 2019, and June 30, 2020. In addition, prepare a bond interest expense and premium amortization schedule for the bonds…
How to record the inteest on a bond in journal entry form.
Please see below. Need help with this.
How is the retirement of bonds recorded?
Entity A has an incentive compensation plan under which the sales manager receives a bonus equal to 10percent of the company's income after deductions for bonus and income taxes. Income before bonus and incometaxes is P500,000. The effective income tax rate is 30 percent. How much is the amount of bonus (rounded to the nearest peso)?a. 32,710 b. 60,748 c. 30,974 d. 37,210 How much is the amount of income tax?a. 131,776 b. 140,708 c. 138,837 d. 140,187
Eq Ltd contributes to a defined benefit superannuation plan for its employees. The following information is available for the plan at 30 June 2021. Fair value of plan assets (1 July 2020) $94 356 000 Fair value of plan assets (30 June 2021) $95 832 000 Present value of defined benefit obligation (1 July 2020) $98 586 000 Present value of defined benefit obligation (30 June 2021) $103 392 000 Benefits paid $15 552 000 Contributions received $8 640 000 Current service cost $12 096 000 Rate of return on plan assets for the period…