Business, 07.06.2020 00:02 MacieKay8865

On June 30, 2017, Cullumber Company issued $5,200,000 face value of 13%, 20-year bonds at $5,591,193, a yield of 12%. Cullumber uses the effective-interest method to amortize bond premium or discount. The bonds pay semi-annual interest on June 30 and December 31. A. Prepare the journal entries to record the following transactions. The issuance of the bonds on June 30, 2012.The payment of interest and the amortization of the premium on December 31, 2012.The payment of interest and the amortization of the premium on June 30, 2013.The payment of interest and the amortization of the premium on December 31, 2013.B. Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2013, balance sheet. C. Provide the answers to the following questions.1. What amount of interest expense is reported for 2013?2. Will the Interest Expense reported in 2013 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used?3. Determine the total cost of borrowing over the life of the bond.4. Will the total Interest Expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used?

Answers: 3

Show answers

Other questions on the subject: Business

Business, 21.06.2019 21:00, cam6836

Case in point 2.4 attaway airlines, part two back at attaway airlines, the morning meeting ended with no agreement between dan esposito and molly kinnon. in fact, a new issue arose. molly now says that the new accounting system is entitled to the highest priority because the federal government soon will require the reporting of certain types of company-paid health insurance premiums. because the current system will not handle this report, she insists that the entire accounting system is a nondiscretionary project. as you might expect, dan is upset. can part of a project be nondiscretionary? what issues need to be discussed? the committee meets again tomorrow, and the members will look to you, as the it director, for guidance.

Answers: 1

continue

Business, 22.06.2019 11:40, rmcarde4432

Fanning company is considering the addition of a new product to its cosmetics line. the company has three distinctly different options: a skin cream, a bath oil, or a hair coloring gel. relevant information and budgeted annual income statements for each of the products follow. skin cream bath oil color gel budgeted sales in units (a) 110,000 190,000 70,000 expected sales price (b) $8 $4 $11 variable costs per unit (c) $2 $2 $7 income statements sales revenue (a × b) $880,000 $760,000 $770,000 variable costs (a × c) (220,000) (380,000) (490,000) contribution margin 660,000 380,000 280,000 fixed costs (432,000) (240,000) (76,000) net income $228,000 $140,000 $204,000 required: (a) determine the margin of safety as a percentage for each product. (b) prepare revised income statements for each product, assuming a 20 percent increase in the budgeted sales volume. (c) for each product, determine the percentage change in net income that results from the 20 percent increase in sales. (d) assuming that management is pessimistic and risk averse, which product should the company add to its cosmetics line? (e) assuming that management is optimistic and risk aggressive, which product should the company add to its cosmetics line?

Answers: 1

continue

Business, 22.06.2019 12:30, bella51032

True or false entrepreneurs try to meet the needs of the marketplace by supplying a service or product

Answers: 1

continue

Business, 22.06.2019 17:30, dondre54

Emery pharmaceutical uses an unstable chemical compound that must be kept in an environment where both temperature and humidity can be controlled. emery uses 825 pounds per month of the chemical, estimates the holding cost to be 50% of the purchase price (because of spoilage), and estimates order costs to be $48 per order. the cost schedules of two suppliers are as follows: vendor 1 vendor 2 quantity price/lb quantity price/lb 1-499 $17 1-399 $17.10 500-999 $16.75 400-799 $16.85 1000+ $16.50 800-1199 $16.60 1200+ $16.25 (a) what is the economic order quantity for each supplier? (b) what quantity should be ordered and which supplier should be used? (c) the total cost for the most economic order sire is $

Answers: 2

continue

You know the right answer?

On June 30, 2017, Cullumber Company issued $5,200,000 face value of 13%, 20-year bonds at $5,591,193...