Bangor Company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2012. Interest is paid on June 30 and December 31. The proceeds from the bonds are $4,901,036. Bangor uses effective-interest amortization. What amount of interest expense will Bangor record for the June 30 payment?
On January 1, 2012, Blanco Inc. issued $5,000,000, 9% bonds for $4,695,000. The market rate of interest for these bonds is 10%. Interest is payable annually on December 31. Blanco uses the effective-interest method of amortizing bond discount. At December 31, 2012, Blanco should report unamortized bond discount of
On June 30, 2012, Rosen Co. had outstanding 8%, $3,000,000 face amount, 15-year bonds maturing on June 30, 2022. Interest is payable on June 30 and December 31. The unamortized balances in the bond discount and deferred bond issue costs accounts on June 30, 2012 were $105,000 and $30,000, respectively. On June 30, 2012, Rosen acquired all of these bonds at 94 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt?
On January 1, 2012, Gise loaned $90,156 to Carter in exchange for a 3 year, zero-interest-bearing note with a face amount, $120,000. The prevailing rate of interest for a loan of this type is 10%. The adjusting journal entry made by Carter at December 31, 2012 with regard to the note will include
A. A debt to interest expense for $12,000
B. A debt to interest expense for $2,985
C. A credit to interest payable for $6,000
D. A credit to discount on notes payable for $9,016
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more