(Answered) The following information is taken from marigold corps

Accounting

The following information is taken from Marigold Corp.'s balance sheet as of December 31, 2016 Current liabilities Interest payable $89,500 Long term liabilities Bonds payable (5%, due January 1, 2027) $3,480,000 Less discount on bonds payable 34,800 $3,445,200 Interest is payable annually on January 1. The bonds are callable on any in your interest date. Marigold uses straight line amortization for any bond premium or discount. From December 31, 2016, the bond will be outstanding for an additional 10 years 120 months.

A. Journalize the payment of bond interest on January 1, 2017

B. Prepare the entry to Amortize bond discount in to accrued interest on December 31, 2017

C. Assume on January 1, 2018, after paying interest the Marigold Corp sales bonds having a base value of $580,000. The call price is 102 record the redemption of the bond.

D. Prepare the adjusting entry on December 31, 2018 two Amortize bond discount and accrue interest on the remaining balance

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92571656
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Exercise - evaluation of purchase options sosa excavating

Exercise - Evaluation of Purchase Options Sosa Excavating Inc. is purchasing a bulldozer. The equipment has a price of $00,000. The manufacturer has offered a payment plan that would allow Amos to make 10 equal annual pa ...

Question each part should be supported with extensive text

Question: Each part should be supported with extensive text explaining and supporting the details of your plan. Part Two - List of financial goals (short, medium, and long-term) ? ?You should have a minimum of 3 for each ...

Question - carpenter inc had a balance of 80000 in its

Question - Carpenter Inc. had a balance of $80,000 in its quality-assurance warranty liability account as of December 31, 2015. In 2016, Carpenter's warranty expenditures were $445,000. Its warranty expense is calculated ...

Question - at december 31 2016 grouper corporation reported

Question - At December 31, 2016, Grouper Corporation reported current assets of $384,870 and current liabilities of $206,100. The following items may have been recorded incorrectly. 1. Goods purchased costing $22,150 wer ...

Question - x company estimates the following for its three

Question - X Company estimates the following for its three products, A, B, and C, for 2018: A B C Revenue $47,460 $24,303 $63,666 Total variable costs 29,400 18,224 26,136 Fixed costs in 2018 are expected to be $19,800 ...

Question - a companys wages payable account had a beginning

Question - A company's Wages Payable account had a beginning balance of $12,000. During the month, the company paid out $70,000 cash for wages. The account had an ending balance of $23,000. What was recorded as Wage Expe ...

Question - pharoah company traded a used welding machine

Question - Pharoah Company traded a used welding machine (cost $10,260, accumulated depreciation $3,420) for office equipment with an estimated fair value of $5,700. Pharoah also paid $3,420 cash in the transaction. Prep ...

Question public companies have to file their annual reports

Question: Public companies have to file their annual reports to the Securities and Exchange Commission. There are rules that companies are required to follow. Domestic issuers must submit annual reports on Form 10-K, qua ...

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 - larkspur corporation has elected to use the fair

Question - Larkspur Corporation has elected to use the fair value option for one of its notes payable. The note was issued at an effective rate of 10% and has a carrying value of $15,000. At year-end, Larkspur's borrowin ...

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