Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

On April 1, 2012, Seminole Company sold 21,600 of its 11%, 15-year, $1,000 face value bonds at 97. Interest payment dates are April 1 and October 1, and the company uses the straight-line method of bond discount amortization. On March 1, 2013, Seminole took advantage of favorable prices of its stock to extinguish 6,800 of the bonds by issuing 224,400 shares of its $10 par value common stock. At this time, the accrued interest was paid in cash. The company's stock was selling for $33 per share on March 1, 2013.

Prepare the journal entries needed on the books of Seminole Company to record the following. (Round answers to 0 decimal places, e.g. $38,548. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(a) April 1, 2012: issuance of the bonds.

(b) October 1, 2012: payment of semiannual interest.

(c) December 31, 2012: accrual of interest expense.

(d) March 1, 2013: extinguishment of 6,800 bonds. (No reversing entries made.)

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947455

Have any Question? 


Related Questions in Accounting Basics

Problem 1 - on may 1 2014 abc corporation purchased

Problem 1 - On May 1, 2014, ABC Corporation purchased equipment for $60,000 by issuing a one-year, 4% note payable, with interest to be paid at maturity on May 1, 2015. The company routinely depreciates its equipment ove ...

Accounting helpkelloggk8286nyse general millsgis7295nyse

Accounting Help Kellogg K $82.86 NYSE General Mills GIS $72.95 NYSE Target TGT $70.12 NYSE Choose three of the stocks - two within the same industry plus one additional stock - from the Company Selection and Stock Watch ...

According to the assignment requirement and the lecture

According to the assignment requirement and the lecture slides and tutorial questions, design a multiple choice question on ordinary income and statutory income from the individual point. 400 words. The QCQ must have a c ...

Practice questionswhat problems might arise in recording

Practice questions: What problems might arise in recording direct labour costs and how would you attempt to remedy them?

Case study - the complete accounting cyclerequirement 1

CASE STUDY - THE COMPLETE ACCOUNTING CYCLE REQUIREMENT 1: During its first month of operation, the View Corporation, a construction company which specializes in home remodeling, completed the following transactions: 1-Ja ...

A stock pays an annual dividend of 2 the dividend is

A stock pays an annual dividend of $2. The dividend is expected to increase by 2% per year (roughly the inflation rate) forever. The price of the stock is $40 per share. At what cost of capital is this stock priced?

Bond issuedetermine the valuation of long-term

Bond Issue Determine the valuation of long-term liabilities. Discussion Donald Lennon is the president, founder, and majority owner of Wichita Medical Corporation, an emerging medical technology products company. Wichita ...

Problemshareholders equity transactions and statement of

Problem Shareholders' Equity Transactions and statement of Financial position presentation The shareholder's equity og M. Gangoso corporation at Jan 1, 2016 appers below: *% preference share, P250 par, 15,000 shares auth ...

Problem - selected account balances for hulse company at

Problem - Selected account balances for Hulse Company at January 1, 2014, are presented below. Accounts payable $13,376 Accounts Receivable 21,288 Cash 17,093 Inventory 12,796 Hulse's sales journal for January shows a to ...

Instructionchapters 1 2 3 4your assignment must be planned

Instruction:. Chapters: 1, 2, 3, 4 Your assignment must be planned, organized, typed properly, no hand written assignment will be accepted. Use pdf file to send your assignment. Please note that this assignment is an exc ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate