(Answered) Problem - on july 1 2014 kellerman company issued 4366900 8

Accounting

Problem - On July 1, 2014, Kellerman Company issued $4,366,900, 8%, 10-year bonds at $3,822,690. This price resulted in an effective-interest rate of 10% on the bonds. Kellerman uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest July 1 and January 1.

Prepare the journal entries to record the following transactions. (Round answers to 0 decimal places, e.g. 15,250. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(1) The issuance of the bonds on July 1, 2014.

(2) The accrual of interest and the amortization of the discount on December 31, 2014.

(3) The payment of interest and the amortization of the discount on July 1, 2015, assuming no accrual of interest on June 30.

(4) The accrual of interest and the amortization of the discount on December 31, 2015.

Show the proper balance sheet presentation for the liability for bonds payable on the December 31, 2015, balance sheet. (For Bonds Payable, Notes Payable and Mortgage payable enter the account name only and do not provide any additional descriptive information e.g. due 2024.)

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92851492
Price:- $25

Verified Expert

Priced at $50 Now at $25, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - aja could tell that this patron was not her

Question - Aja could tell that this "patron" was not her store's usual type. She could see he did not care about fashion, and the customers that came to her shop in the Jacksonville mall were all tuned in to the latest s ...

Question you plan to be open 50 hours per week for 20 weeks

Question: You plan to be open 50 hours per week for 20 weeks in the year. You therefore anticipate operating costs of $100,000 per year. You would be able to borrow $1,700,000 you need to get started under a 20-year loan ...

Question - c d rom has just given an insurance company

Question - C. D. Rom has just given an insurance company $35,500. In return, he will receive an annuity of $4,400 for 20 years. At what rate of return must the insurance company invest this $35,500 in order to make the a ...

Question - x company wants to estimate overhead costs in

Question - X Company wants to estimate overhead costs in March, when production is expected to be 1,400 units. To determine the parameters of its overhead cost function, it used account analysis with the January cost inf ...

Question - paid audi company the interest due on the note

Question - Paid Audi Company the interest due on the note of April 15 and renewed the loan by issuing a new 60-day, 8% note for $225,000. Record both the debit and credit to the notes payable account.

Question - the kaufman car company sells cars with a

Question - The Kaufman car company sells cars with a warranty that they will work properly. based on its historic experience, it expects the cost of honoring this warranty to be about 1% of sales. In 2014, it makes $500 ...

Question - kripke company reported net income for fiscal

Question - Kripke Company reported net income for fiscal 2016 of $7,215 million, retained earnings at the start of the year of $71,993 million and dividends of $7,448 million, and other transactions with shareholders tha ...

Question - a company has 19 units in inventory at the

Question - A company has 19 units in inventory at the beginning of May and paid $55 for each unit. On May 2, the company buys 24 more units and pays $57 for each unit. On May 5, the company sells 30 units for $84 each. I ...

Question - buddy industries inc bii developed the following

Question - Buddy Industries, Inc., (BII) developed the following standard costs for direct material and direct labor for one of their major products, the 10-gallon plastic container. Standard quantity Standard price Di ...

Question - books and brew bb is a large city bookstore that

Question - Books and Brew (BB) is a large city bookstore that sells books and music CD's, and also has a cafe. Currently, BB uses a single-driver system to allocate its operating costs to each of its three product lines, ...

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