Answered step by step
Verified Expert Solution
Question
1 Approved Answer
can an accounting tutor help me with my homework please (: I will appreciate it so much!! xoxo On July 1, 2016, Merideth Industries Inc.
can an accounting tutor help me with my homework please (:
I will appreciate it so much!! xoxo
On July 1, 2016, Merideth Industries Inc. issued $28,500,000 of 10-year, 8% bonds at a market (effective) interest rate of 9%, receiving cash of $26,646,292. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2016.* 2. Journalize the entries to record the following:* a. The first semiannual interest payment on December 31, 2016, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.) b. The interest payment on June 30, 2017, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.) 3. Determine the total interest expense for 2016. 4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? 5. Compute the price of $26,646,292 received for the bonds by using the tables shown in Present Value Tables. (Round to the nearest dollar.)f *Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. 1. and 2. Journalize the entries to record the transactions. Be sure to include the year in the date for the entries. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. PAGE 10 JOURNAL Score: 0/112 DATE 1 2 3 4 5 6 DESCRIPTION POST. REF. DEBIT CREDIT DATE 7 8 9 DESCRIPTION POST. REF. DEBIT CREDITStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started