Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 4 safari 7:19pm sun 16jun hw for extra credit

4 Safari 7:19PM sun 16Jun HW for extra credit 5 ...

50.1K

Verified Solution

Question

Accounting

4 Safari
7:19PM sun 16Jun
HW for extra credit 5
*E11.12(LO 5) Lorance SpA issued 400,000,7%,20-year bonds on January 1,2020, for 360,727. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1. Lorance uses the effective-interest method to amortize bond premium or discount.
Instructions
Prepare the journal entries to record the following. (Round to the nearest euro.)
a. The issuance of the bonds.
b. The accrual of interest and the discount amortization on December 31,2020.
c. The payment of interest on January 1,2021.
HW1 for extra credit:
Continue this question, and finish the amortization schedule over the first 10 years from 2020 to 2030.
Lorance SpA
Bond Discount Amortization Schedule
\table[[Period,Interest to be paid,Interest Expense,Discount amortization,Bond carrying value],[2020.1,,,,360,727
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Biology
1.2K views

From a strictly mechanistic point of view (i.e., ignoring practicalities, FDA approval, etc), what drugs might...

Biology
1.2K views

9 What is the maximum safe working pressure to which you should set an oxyacetylene...

Biology
1.2K views

OOO Assertion A Johnson removed Secretary of War Edwin Stanton from office in 1868 Reason...

Physics
1.2K views

Two thermally insulated vessels 1 and 2 are filled with air at temperatures T T...

Physics
1.2K views

A wheel whose moment of inertia is 12 kg m has an initial angular velocity...

Basic Math
1.2K views

11 Given f x 4 x 2 x 5 3 x 2 x 6 determine...

Calculus
1.2K views

A four-digit number starts with a number between 2-9 in the first position, with no...

Calculus
1.2K views

Use the price demand equation below to find E p the elasticity of demand x...

Accounting
1.2K views

Novak Inc, which produces a single product, has prepared the following...

Accounting
1.2K views

Forten Company, a merchandiser, recently completed its calendar-year 2015 operations. For the year, (1) all...

Accounting
1.2K views

The gain resulting from the sale of equipment shown when using the indirect method to...

Finance
1.2K views

In addition to more traditional stock exchanges in the US such as the New York...