1 on january 1 2011 ryan ltd issued 10 bonds dated january, Ask an Expert

Accounting

1. On January 1, 2011, Ryan Ltd. issued 10% bonds dated January 1, 2011, with a face amount of $10 million. The bonds mature in 2025 (15 years). For bonds of similar risk and maturity, the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Debt issues costs were $20,000. Two years from the issue date (January 1, 2013), the corporation excised its call privilege and retired 40% of the bonds for at 105 (105% of face value of retired bonds). The corporation uses the effective interest method to determine interest and straight-line method to amortize debt issues costs.
1) Prepare the journal entry to record the bond issuance by Ryan on January 1, 2011.
2) Prepare the amortization table up to two years after the issuance of the bonds.
3) Prepare the journal entry to record cash payment on December 31, 2011 and amortization of debt issuance costs.
4) Prepare journal entries to record the call of bonds.

I already answers part 1,2, and 3.... How do I do part number 4? And in part number 3 should i record the cash payment of June 30 and December 31? or only december?

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9873188

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - the records of riverbeds boutique report the

Question - The records of Riverbed's Boutique report the following data for the month of April. Sales revenue$100,100 Purchases (at cost) $47,400 Sales returns 1,900 Purchases (at sales price) 95,300 Markups 9,500 Purcha ...

Question - a revenue of 62000 was earned but only 45000 was

Question - a. Revenue of $62,000 was earned, but only $45,000 was collected. Expenses of $36,000 were incurred, but only $30,000 was paid. What is reported operating income? b. Wages of $5,000 are paid every Friday for a ...

Question - calculate the break-even in dollars given the

Question - Calculate the break-even in dollars given the following information: Sales per unit of $40, variable costs of $15, fixed costs of $15,000, and a desired profit of $20,000. What is the break-even in dollars?

Question - splish company purchased equipment for 221000 on

Question - Splish Company purchased equipment for $221,000 on October 1, 2017. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,480. Estimated production is 40,100 units an ...

Question - the following information relates to nebula

Question - The following information relates to Nebula, Inc. Sales Revenue $240,000 Cost of Goods Sold 160,000 Interest Revenue 10,000 Operating Expenses 40,000 Sales Discounts 20,000 Sales Returns and Allowances 7,000 C ...

Question - make a statement of comprehensive income from

Question - Make a statement of comprehensive income from the following data? Sales revenue $40,000,000 General and administrative expenses 8,200,000 Deferred revenue 100,000 Interest expense 65,000 Selling expenses 1,800 ...

Question - watch the video then discuss the differences

Question - Watch the video then discuss the differences between variable and absorption costing. How does variable costing help a company make good management decisions? List some examples of ways in which a business wou ...

Question - mears production company makes several products

Question - Mears Production Company makes several products and sells them for an average price of $90. Mears' accountant is considering two different approaches to estimating the firm's total monthly cost function, accou ...

Question - a summary of labor costs and associated

Question - A summary of labor costs and associated deductions for the month of July follows: Gross PAYG Tax Super Medical Fund Direct labour 40,000 12,000 2,000 200 Indirect labour 8,000 2,400 400 40 48,000 14,400 2, ...

Question - donuts r us sells expensive donuts the companys

Question - Donuts R Us sells expensive donuts. The company's annual fixed costs re $54000. The sales price of a donut is $10, and it costs the company $6 to make each donut. Ignore income taxes for the following requirem ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert