Business, 06.07.2021 19:00 adam463

Seaview Industries received authorization on December 31, Year 1, to issue $7,000,000 face value of 6%, 10-year bonds. The interest payment dates are June 30 and December 31. All the bonds were issued at par, plus accrued interest, April 1, Year 2. The bonds are callable by Seaview Industries at any time at 102. Required:
a. Prepare the journal entry to record issuance of the bonds on April 1, Year 2.
b. Prepare the journal entry to record the first semiannual interest payment on the bonds at June 30, Year 2.
c. What is the amount of bond interest expense that appears in Seaviewâ€™s Year 2 income statement relating to these bonds?
d. What is the amount of accrued bond interest expense that appears in Seaviewâ€™s balance sheet at December 31, Year 2, with respect to these bonds?
e. Seaview exercises the call provision and retires one-half of the bond issue on July, 1, Year 4. Prepare the journal entry to record this transaction on July 1, Year 4.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 19:30

How do primary and secondary industries differ

Answers: 1

Answer

Business, 22.06.2019 11:00

Consider an economy where government expenditures are 10 and total tax revenues are 10. the supply of labor is fixed at 125 and the supply of capital is fixed at 8. the economy is described by the following equations. y k to the power of 1 divided by 3 end exponent l to the power of 2 divided by 3 end exponent c 2.5 + 0.75 ( y - t ) i 10 - 0.5 r the level of private savings is

Answers: 1

Answer

Business, 22.06.2019 12:10

Laws corporation is considering the purchase of a machine costing $16,000. estimated cash savings from using the new machine are $4,120 per year. the machine will have no salvage value at the end of its useful life of six years and the required rate of return for laws corporation is 12%. the machine's internal rate of return is closest to (ignore income taxes) (a) 12% (b) 14% (c) 16% (d) 18%

Answers: 1

Answer

Business, 22.06.2019 22:20

Which of the following best explains why the demand for housing is more flexible than the supply? a. new housing developments are being constructed all the time. b. low interest rates for mortgages make buying a home very affordable. c. the increasing population always drives demand upwards. d. people can move more easily than producers can build new homes.

Answers: 1

Answer

You know the right answer?

Seaview Industries received authorization on December 31, Year 1, to issue $7,000,000 face value of...

Questions