Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2016, crammer inc. issues five-year

On January 1, 2016, Crammer Inc. issues five-year bonds with a total face amount of...

70.2K

Verified Solution

Question

Accounting

On January 1, 2016, Crammer Inc. issues five-year bonds with a total face amount of $1,000,000 and a stated rate of 10%. The bonds were issued at 96 on January 1, 2016. Interest is paid semiannually on June 30 and December 31.

1. What is the balance in the Premium or Discount account after the June 30, 2016 entry? Show your calculation.

2. What is the carrying value of the bonds after the June 30, 2016 entry? Show your calculation.

3. Give the journal entry to record the repayment of the bond at maturity on January 1, 2021, after all interest has been paid.

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

Medical Sciences
1.2K views

describe the development of an individual with that condition from the point of an undifferentiated embryo...

Psychology
1.2K views

SOCIOLOGY Discuss the differences in offending by gender when it comes to violent crime and property crime,...

Geometry
1.2K views

Which polar coordinate point s represents the point 3 3 3 in the rectangular coordinate...

Geometry
1.2K views

equation below gives parametric equations and parameter intervals for the motion of a particle in...

Basic Math
1.2K views

Use Osborn's rule or otherwise to prove that:a) 1 - tanhx = sechxb) cothx -...

Accounting
1.2K views

********USE THE FOLLOWING INFORMATION FOR PROBLEMS 16-23************ WizzleCo produces bicycles. The following standard...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Walton Company makes and...

Accounting
1.2K views

The following account balances are for the Agee Company as of January 1, 2017, and...

Accounting
1.2K views

WHAT DOES 3BL STAND FOR AND WHAT DOES IT MEAN IN ACCOUNTING PARLANCE?

Accounting
1.2K views

Padre, Inc., buys 80 percent of the outstanding common stock of Sierra Corporation on January...

Accounting
1.2K views

QS 8-10(Algo) Computing revised depreciation LO C2 On January 1, the Matthews Band pays $67,600...

Finance
1.2K views

1. What is the NPV of a $45,000 project that is expected to have an...