1 / 2

Assignment 1

Assignment 1.

jonco
Download Presentation

Assignment 1

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Assignment 1 E.14.14. On June 30, 1996, Gene Autry Company issued 12 % bonds with a par value of $ 800,000 due in 20 years. They were issued at 98 and were callable at 104 at any date after June 30, 2004. Because of lower interest rates and a significant change in the company’s credit rating, it was decided to call the entire issue on June 30, 2005, and to issue new bonds. New 10 % bonds were sold in the amount of $ 1,000,000 at 102, they mature in 20 years. Autry Company uses straight line amortization. Interest payment dates are December 31 and June 30. Instructions a. Prepare journal entries to record the retirement of the old issue and the sale of the new issue on June 30, 2005. b. Prepare the entry required on December 31, 2005, to record the payment of the first 6 months interest and the amortization of premium on the bonds.

  2. Assignment 2 Problem 14.1

More Related