Business, 19.10.2019 01:30 catchonyet

The following transactions were completed by montague inc., whose fiscal year is the calendar year:
2014july 1. issued $55,000,000 of 10-year, 9% callable bonds dated july 1, 2014, at a market (effective) rate of 7%, receiving cash of $62,817,040. interest is payable semiannually on december 31 and june 30.
oct. 1. borrowed $450,000 by issuing a six-year, 8% installment note to intexicon bank. the note requires annual payments of $97,342, with the first payment occurring on september 30, 2015.
dec. 31. accrued $9,000 of interest on the installment note. the interest is payable on the date of the next installment note payment.
31. paid the semiannual interest on the bonds. the bond premium is amortized annually in a separate journal entry.
31. recorded bond premium amortization of $390,852 which was determined using the straight-line method.
31. closed the interest expense account.2015june 30. paid the semiannual interest on the bonds. the bond premium is amortized annually in a separate journal entry.
sept. 30. paid the annual payment on the note, which consisted of interest of $36,000 and principal of $61,342.
dec. 31. accrued $7,773 of interest on the installment note. the interest is payable on the date of the next installment note payment.
31. paid the semiannual interest on the bonds. the bond premium is amortized annually in a separate journal entry.
31. recorded bond premium amortization of $781,704, which was determined using the straight-line method.
31. closed the interest expense account.2016june 30. recorded the redemption of the bonds, which were called at 103. the balance in the bond premium account is $6,253,632 after payment of interest and amortization of premium have been recorded. (record the redemption only.)
sept. 30. paid the second annual payment on the note, which consisted of interest of $31,093 and principal of $66,249.instructions: 1. journalize the entries to record the foregoing transactions.
2. indicate the amount of the interest expense in (a) 2014 and (b) 2015.
3. determine the carrying amount of the bonds as of december 31, 2015.

Answers: 3

Show answers

Another question on Business

Business, 21.06.2019 18:20

When someone buys a fourth television for his or her house, what is the result? a. there's a decrease in the marginal utility of the television. b. the increase in demand brings leads to higher prices for televisions. c. the production of televisions becomes more efficient. d. there's a rise in the opportunity cost of buying other goods.

Answers: 2

Answer

Business, 22.06.2019 19:00

Gus needs to purée his soup while it's still in the pot. what is the best tool for him to use? a. potato masher b. immersion blender c. rotary mixer d. whisk

Answers: 2

Answer

Business, 22.06.2019 21:00

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be:

Answers: 3

Answer

Business, 22.06.2019 22:40

Effective capacity is the: a. capacity a firm expects to achieve given the current operating constraints.b. minimum usable capacity of a particular facility.c. sum of all the organization's inputs.d. average output that can be achieved under ideal conditions.e. maximum output of a system in a given period.

Answers: 1

Answer

You know the right answer?

The following transactions were completed by montague inc., whose fiscal year is the calendar year:...

Questions