Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. entries for issuing bonds and amortizing premium b

Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products...

80.2K

Verified Solution

Question

Accounting

image
Entries for Issuing Bonds and Amortizing Premium by Straight-Line Method Smiley Corporation wholesales repair products to equipment manufacturers. On April 1, 20Y1, Smiley issued $5,200,000 of 10 -year, 9% bonds at a market (effective) interest rate of 7%, receiving cash of $5,939,045. Interest is payable semiannually on April 1 and October 1. a. Journalize the entry to record the issuance of bonds on April 1, 20y1. If an amount box does not require an entry, leave it blank. b. Journalize the entry to record the first interest payment on October 1, 20Y1, and amortization of bond premium for six months, using the straight-line method. Round to the nearest dollar. If an amount box does not require an entry, leave. it blank. c. Why was the company able to issue the bonds for $5,939,045 rather than for the face amount of $5,200,000 ? The market rate of interest is the contract rate of interest

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

Operations Management
1.2K views

Discuss the IT auditing processes related to achieving maturity level 3 in a department. Can a...

Biology
1.2K views

what are the steps of how membrane bound proteins get into the membrane starting with new...

Medical Sciences
1.2K views

Discuss hormonal regulation of spermatogenesis and oogenesis. Make sure to include how FSH (2 pts), LH...

Basic Math
1.2K views

Consider a paint-drying situation in which drying time for a test specimen is normally distributed with...

Basic Math
1.2K views

This problem is also a Monte Carlo simulation, but this time in the continuous domain: must...

Basic Math
1.2K views

Let n t 7 Use a double angle formula to find sin 2t 8 Give...

Statistics
1.2K views

The graph illustrates a normal distribution for the prices paid for a particular model of...

Algebra
1.2K views

Frank knit scarves for his friends. Altogether, the scarves had a total length of 436.8...

Accounting
1.2K views

Consider the following transactions. 1. Receive cash from customers, $15,000. 2. Pay cash for employee...

Accounting
1.2K views

Doug's Custom Construction Company is considering three new projects, each requiring an equipment investment of...

Accounting
1.2K views

Construction of a qualifying asset is started on April 1 and finished on December 1....

Accounting
1.2K views

Discuss each of Starbuckss annual report 2022 financial statement in the following order; income statement,...