Business, 27.03.2021 04:40 rosieanneanney

Cupola Fan Corporation issued 12%, $550,000, 10-year bonds for $525,000 on June 30, 2021. Debt issue costs were $3,000. Interest is paid semiannually on December 31 and June 30. One year from the issue date (July 1, 2022), the corporation exercised its call privilege and retired the bonds for $530,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs. Required:Prepare the journal entry to record the issuance of the bonds, the payment of interest and amortization of debt issue costs on December 31, 2018 & 2019, and the call of the bonds.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 20:00

Jorge is a manager at starbucks. his operational plan includes achieving annual sales of $4,000,000 for his store. with only one month left to end of the fiscal year, jorge realizes that he won't reach his annual sales goal. what are his options?

Answers: 2

Answer

Business, 22.06.2019 18:00

On september 1, 2016, steve loaned brett $2,000 at 12% interest compounded annually. steve is not in the business of lending money. the note stated that principal and interest would be due on august 31, 2018. in 2018, steve received $2,508.80 ($2,000 principal and $508.80 interest). steve uses the cash method of accounting. what amount must steve include in income on his income tax return?

Answers: 1

Answer

Business, 22.06.2019 20:50

Happy foods and general grains both produce similar puffed rice breakfast cereals. for both companies, thecost of producing a box of cereal is 45 cents, and it is not possible for either company to lower their productioncosts any further. how can one company achieve a competitive advantage over the other?

Answers: 1

Answer

Business, 22.06.2019 21:10

Ahospital purchases a $500,000 magnetic resonance imaging (mri) machine that has a useful life of 9 years. the salvage value at the end of 9 years is $77,000. (a) write a linear equation that describes the value y (in dollars) of the mri machine in terms of the time t (in years), 0 ≤ t ≤ 9. (b) find the value, in dollars, of the machine after 6 years. $ (c) find the time, in years, when the value of the equipment will be $140,000. (round your answer to two decimal places.) yr

Answers: 2

Answer

You know the right answer?

Cupola Fan Corporation issued 12%, $550,000, 10-year bonds for $525,000 on June 30, 2021. Debt issue...

Questions