FindArena > Find Arena > Mobiles

Thread Tools Display Modes
  #1 ()
GenericProdeciaBUYON : on 1/1/05, ABC company issues $100,000 face value, 10% bonds to yield 8%. The bonds are dated 1/1/05, pay interest each 7/1 and 1/1, and mature on 1/1/15. Assume firms have 12/31 fiscal year end.

1. Compute the issue price of the bonds. For this i got $113,590.33. Can someone double check me?

2. Record the issuance of the bonds. I have

Cash 113,590.33
Bonds Payable 100,000.00
Premium Bonds 13,590.33

Can anyone check to see if i did that right also?

and this next one is the one im struggling with

3. Provide all entries through 1/1/06, assuming ABC uses straight line amortization

Can someone help me with this one? Thanks.
  Reply With Quote
  #2 ()
nesbitt379 : Part 1

I got $113,590.33 also, using a financial calculator.

Part 2

Your entry is correct, but you might want to use an account title for the premium that more fully describes it, such as "Premium on Bonds Payable".

Part 3

Debit Cash $113,590.33
Credit Bonds Payable $100,000.00
Credit Premium on Bonds Payable $13,590.33

Debit Interest Expense $4,320.48 [$5,000 - $679.52]
Debit Premium on Bonds Payable $679.52 [$13,590.33 / 20 = $679.52 per period]
Credit Cash $5,000 [$100,000 x 10% x 6/12]

Debit Interest Expense $4,320.48
Debit Premium on Bonds Payable $679.52
Credit Interest Payable $5,000

Debit Interest Payable $5,000
Credit Cash $5,000
  Reply With Quote
  #3 ()
Buiscuspigape : When the new iphone is out next month do u think it'll make the ones before it cheaper?? Im getting a new phone this week but im wondering if I should wait
  Reply With Quote
  #4 ()
StoomyTog : I am thinking of buying a iphone 3g as that's all I can afford for now and I would like to know if I will be able to play sims freeplay and the Simpson's tapped out on it please
  Reply With Quote
  #5 ()
PartVarkBot : it only shows the phone name and then start over (samsung exhibit 2 4g)
  Reply With Quote
  #6 ()
TinityXator : You trade it for a new one if its still under warranty.
  Reply With Quote
  #7 ()
XRbertie : I am doing a project for my class, and I want to find out how much I need to spend to develop a mobile app for one restaurant.

The mobile app needs to have

1. online order system (pre-order, delivery, catering service),
2. Coupons system
3. Review system
4. Media system (FACEBOOK, TWITTER, ETC.)

I searched on google to find a price, but I got so many different answers.
Can anyone tell me a clear though on pricing?
  Reply With Quote