Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on 1/1/2022blue issued 2-year, 10%, $10,000 bonds

On 1/1/2022Blue issued 2-year, 10%, $10,000 bonds for $10,363. Interest is paid every 6/30 and...

50.1K

Verified Solution

Question

Accounting

On 1/1/2022Blue issued 2-year, 10%, $10,000 bonds for $10,363. Interest is paid every 6/30 and 12/31. The effective rate at issuance was 8%.

1. Assume that due tochanges in Blues credit risk, the effective rate changed to14% on 6/30/2022. Record journal entries for 6/30/2022.

2. Further assume that due tochanges in the general market rate, the effective rate changed to12% on 12/31/2022. Record journal entries for 12/31/2022

3. What is the effect of the bonds on the 2022pre-tax income?

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. How does an automated gene sequencer detect the specific nucleotide at the end of a...

Civil Engineering
1.2K views

The bottom reinforcement in a 200mm × 500mm concrete beam is found to have corroded during...

Physics
1.2K views

Picture water flow of four straws, short and fat, short and thin, long and fat, and...

Physics
1.2K views

A massive weekly conducting metal cylinder with closed bottom of height h 1 m closed...

Geometry
1.2K views

A 55 pound box sits on a ramp with 24 incline So the box experiences...

Algebra
1.2K views

Enter the correct answers to complete the following sentence The circle with equation x y...

Accounting
1.2K views

please answer this question dear sir I am in exam....

Accounting
1.2K views

Choose the correctly punctuated sentence: a. Someone sat on my Mexican hat, and flattened it....

Accounting
1.2K views

Exercise 20-18(Algo) Schedule of cash receipts LO P2 Jasper Company has 64% of...

Accounting
1.2K views

c reither co reports the following information for 2014, sales revenue $700,000; cost of goods...

Accounting
1.2K views

Delray Manufacturing needs to better budget and analyze costs. While Delray has experienced high sales...

Accounting
1.2K views

Question 3 (1 point) Which account is indirect manufacturing labor recorded to? Manufacturing overhead expense...