On 1 July 2016, FBI Limited issued a 10-year debenture of $200000 at a price of...
On 1 July 2016, FBI Limited issued a 10-year debenture of $200000 at a price of 93.496, stated interest rate of 8%, payable half-yearly.
The half-yearly interest dates are 1 July and 31 December. The market interest rate is 9%. FBI Limited amortises the company liabilities using the effective interest rate method. The company's financial year ends on 30 September.
Required:
Journalise the above transactions up to 31 December 2016 (including the relevant adjusting entries for the financial year-end 30 September 2016).
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
On 1 July 2016, FBI Limited issued a 10-year debenture of
$200000 at a price of...
Oscar, Inc. issued a $500,000, 5.5%, 10-year bond on January 1, 2016. The market rate of...
Oscar, Inc. issued a $500,000, 5.5%, 10-year bond on January 1, 2016. The market rate of interest at issuance was 6%. The bonds make semi-annual interest payments on July 1st and January 1st. The corporation’s fiscal year ends on December 31. The corporation accounts for the bonds using the effective-interest method a) Calculate the price of the bond at issuance on January 1, 2016 b) Prepare any journal entry the company records on December 31, 2016
On July 1, 2015, Flanagin Corporation issued $1,751,400, 10%, 10-year bonds at $1,989,427. This p...
On July 1, 2015, Flanagin Corporation issued $1,751,400, 10%, 10-year bonds at $1,989,427. This price resulted in an effective-interest rate of 8% on the bonds. Flanagin uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1. Prepare the journal entry to record the issuance of the bonds on July 1, 2015. Prepare an amortization table through December 31, 2016 (3 interest periods), for this bond issue. Prepare the journal entry...
On July 1, 2017 Sweet Limited issued bonds with a face value of $1,002,000 due in...
On July 1, 2017 Sweet Limited issued bonds with a face value of $1,002,000 due in 20 years, paying interest at a face rate of 6% on January 1 and July 1 each year. The bonds were issued to yield 8%. The company’s year-end was September 30. The company used the effective interest method of amortization. Calculate the premium or discount on the bonds.
eBook On July 1, 2016, Merideth Industries Inc issued Sas,400,000 of 10-year, 10% bonds at a...
eBook On July 1, 2016, Merideth Industries Inc issued Sas,400,000 of 10-year, 10% bonds at a market (effective) interest rate of 12%, receiving cash of $31,339,478. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016. 2. Journalize the entries to record the following: a....
I need help pls ASAP. Thank you On July 1, 2020 Pharoah Limited issued bonds with...
I need help pls ASAP. Thank you On July 1, 2020 Pharoah Limited issued bonds with a face value of $990,000 due in 20 years, paying interest at a face rate of 7% on January 1 and July 1 each year. The bonds were issued to yield 9%. The company’s year-end was September 30. The company used the effective interest method of amortization. 1) Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the premium...
On July 1, 2020 Splish Limited issued bonds with a face value of $1,090,000 due in...
On July 1, 2020 Splish Limited issued bonds with a face value of $1,090,000 due in 20 years, paying interest at a face rate of 8% on January 1 and July 1 each year. The bonds were issued to yield 10%. The company’s year-end was September 30. The company used the effective interest method of amortization. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the premium or discount on the bonds. (Round factor values...
2. On July 1, 2020 Turnage Corporation issued $2,000,000, 10%, 10-year bonds for $2,271,813. This price...
2. On July 1, 2020 Turnage Corporation issued $2,000,000, 10%, 10-year bonds for $2,271,813. This price was calculated using an 8% effective interest rate on the bonds. Turnage uses the effective interest method to amortize a bond premium or discount. The bonds pay semiannual interest on July 1 and January 1. Instructions (Round all calculations to the nearest dollar) a. Prepare the journal entry to record the issuance of the bonds on July 1, 2020. b. Prepare an amortization table...
Polk Incorporated issued $213,000 of 9% bonds on July 1, 2016, for $220,918.63. The bonds were...
Polk Incorporated issued $213,000 of 9% bonds on July 1, 2016, for $220,918.63. The bonds were dated January 1, 2016, pay interest on each June 30 and December 31, are due December 31, 2020, and were issued to yield 8%. Polk uses the effective interest method of amortization. Required: Prepare a bond interest expense and premium amortization schedule for the bonds through June 30, 2017. Prepare a bond interest expense and discount amortization schedule for the bonds through June 30,...
On July 1, Orcas Lab issued a $320,000, 12%, 8-month note. Interest is payable at maturity....
On July 1, Orcas Lab issued a $320,000, 12%, 8-month note. Interest is payable at maturity. What is the amount of interest expense that should be recorded in a year-end adjusting entry if the fiscal year-end is (a) December 31? (b) September 30? December 31 September 30
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a...
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Determine the total interest expense for Year 1, using the interest method.
eBook On July 1, 2016, Merideth Industries Inc issued Sas,400,000 of 10-year, 10% bonds at a market (effective) interest rate of 12%, receiving cash of $31,339,478. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016. 2. Journalize the entries to record the following: a....
2. On July 1, 2020 Turnage Corporation issued $2,000,000, 10%, 10-year bonds for $2,271,813. This price was calculated using an 8% effective interest rate on the bonds. Turnage uses the effective interest method to amortize a bond premium or discount. The bonds pay semiannual interest on July 1 and January 1. Instructions (Round all calculations to the nearest dollar) a. Prepare the journal entry to record the issuance of the bonds on July 1, 2020. b. Prepare an amortization table...
On July 1, Orcas Lab issued a $320,000, 12%, 8-month note. Interest is payable at maturity. What is the amount of interest expense that should be recorded in a year-end adjusting entry if the fiscal year-end is (a) December 31? (b) September 30? December 31 September 30
Most questions answered within 3 hours.
-
QUESTION 1 Tamiflu is a drug used to treat influenza. A study
found that Tamiflu reduced...
asked 1 minute from now -
Which of the following would be less likely to be used to
allocate factory overhead when...
asked 4 minutes ago -
Transverse pulses travel with a speed of 195 m/s along a taut
copper wire whose diameter...
asked 3 minutes ago -
Sampling for Engineers Homework question 11.51
Suppose that Y1;Y2;Y3;Y4 denote a random sample from a
Poisson(θ)...
asked 6 minutes ago -
Which of the following is cleaved by regulated intramembrane
proteolysis (RIP)? Select any/all answers that apply....
asked 6 minutes ago -
Random characters You decide to create a program characters.py
that fills a two-dimensional list with random...
asked 18 minutes ago -
What are the major sources of error in your determination of the
molar mass? Select all...
asked 22 minutes ago -
A. Suppose your manager indicates that for a normally
distributed data set you are analyzing, your...
asked 43 minutes ago -
During the month of August, the average temperature of a lake
next to a local college...
asked 25 minutes ago -
Which of these four researchers is most likely to have made Type
1 error
Kim who...
asked 38 minutes ago -
In a performance test, each of two cars takes 8.9 s to
accelerate from rest to...
asked 39 minutes ago -
Sapphire Aerospace operates 52 weeks per year, and its cost of
goods sold last year was...
asked 43 minutes ago