Business, 23.08.2021 23:50 glocurlsprinces

On October 1, 2016, Indigo Corp. issued $960,000, 5%, 10-year bonds at face value. The bonds were dated October 1, 2016, and pay interest annually on October 1. Financial statements are prepared annually on December 31. i. Prepare the journal entry to record the issuance of the bonds.
ii. Prepare the adjusting entry to record the accrual of interest on December 31, 2016.
iii. Show the balance sheet presentation of bonds payable and bond interest payable on December 31, 2016.
iv. Prepare the journal entry to record the payment of interest on October 1, 2017.
v. Prepare the adjusting entry to record the accrual of interest on December 31, 2017.
vi. Assume that on January 1, 2018, Indigo pays the accrued bond interest and calls the bonds. The call price is 104. Record the payment of interest and redemption of the bonds.

Answers: 1

Show answers

Another question on Business

Business, 21.06.2019 20:20

Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. income reported on the income statement for the year was $180,000. exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Answers: 2

Answer

Business, 22.06.2019 05:50

Match each of the terms below with an example that fits the term. a. fungibility the production of gasoline b. inelasticity the switch from coffee to tea c. non-excludability the provision of national defense d. substitution the demand for cigarettes

Answers: 2

Answer

Business, 22.06.2019 20:30

Casey communications recently issued new common stock and used the proceeds to pay off some of its short-term notes payable. this action had no effect on the company's total assets or operating income. which of the following effects would occur as a result of this action? a. the company's current ratio increased.b. the company's times interest earned ratio decreased.c. the company's basic earning power ratio increased.d. the company's equity multiplier increased.e. the company's debt ratio increased.

Answers: 3

Answer

Business, 22.06.2019 20:50

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold

Answers: 2

Answer

You know the right answer?

On October 1, 2016, Indigo Corp. issued $960,000, 5%, 10-year bonds at face value. The bonds were da...

Questions