Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. ohalloran inc. produces and sells outdoor equipmen

OHalloran Inc. produces and sells outdoor equipment. On July 1, Year 1, OHalloran Inc. issued...

90.2K

Verified Solution

Question

Accounting

OHalloran Inc. produces and sells outdoor equipment. On July 1, Year 1, OHalloran Inc. issued $32,000,000 of six-year, 8% bonds at a market (effective) interest rate of 7%, receiving cash of $33,546,022. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

1. Using Excel Present Value function, prove that the present value of $33,546,022 is accurate.

2.Prepare the journal entry when the bond was issued.

3.Prepare the journal entry for the first interest to the bondholders

4. Prepare the amortization journal entry

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

1) Create a chart that compares and contrasts the structure of gram-positive and gram-negative cell walls. 2)...

Biology
1.2K views

Deforestation and forest degradation are the biggest threats to forests worldwide. Deforestation occurs when forests...

Physics
1.2K views

images are located on the same side of the lens as the object that is...

Physics
1.2K views

1 Equal masses of water and a liquid of relative density two are mixed together...

Basic Math
1.2K views

What is wrong with either one or the other of the two definitions of holiness...

Algebra
1.2K views

Here are the percents of the popular vote won by each successful candidatein 15 presidential...

Algebra
1.2K views

What is the standard deviation of the following data set rounded to the nearest tenth?78,...

Accounting
1.2K views

Sweet Corporation is a publicly owned company that follows IFRS. On December 31, 2019, Sweet's...

Accounting
1.2K views

Briggs Corp. has collected the following data concerning its maintenance costs for the past 6...

Accounting
1.2K views

Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company's accounting system says...

Accounting
1.2K views

Trio Sports Manufacturer produces equipment for three sports baseball, basketbal, and golf. The accountants prepared...

Accounting
1.2K views

The budget director for Munoz Cleaning Services prepared the following list of expected selling and...