Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

i am stuck. help with A B C D E please explain n show formula 400000 ron 160000 160000-164556 - 24556 - 4000poor.orxh 184556 2

image text in transcribed
i am stuck. help with A B C D E
please explain n show formula
400000 ron 160000 160000-164556 - 24556 - 4000poor.orxh 184556 2 3641117 x-love Chapter 14 Problem .61491 Bond interest and discount amortization. Grove Corporation issued $4,000,000 of 8% bonds on October 1, 2014, due on October 1, 2019. The interest is to be paid twice a year on April 1 and October 1. The bonds were sold to yield 10% effective anual interest. Grove Corporation closes its books annually on December 31. . Shutte market are Instructions Jon hout borr, 8% to 6 Discord. (a) Complete the following amortization schedule for the dates indicated. (Round all answers to the nearest dollar.) Use the effective interest method. Debit 10% Credit Carrying Amount Credit Cash Interest Expense Bond Discount of Bonds October 1, 2014 $3,691,117 b April 1, 2015 160,000 184556 36 24556 24356 3715,673 C'October 1, 2015 16 160,000 165784 25 784 3741457 (6) Prepare the adjusting entry for December 31, 2015 using the effective interest method. 3741457 + 10% 3/5 = 9353 Intrest Expense 93536. Intrest Payable 74629. Discount on Bond Carable 18707 (e) Prepare the adjusting entry for December 31, 2015 using the straight line interest method. 82560 4 millon 92 Intrest Expense = 366.00 Discount on Bonds Payable 2560 Intrest Payable (d) Compute the effective interest expense to be reported in the income statement for the year ended December 31, 2015 Pamt 320 2560 porno 80000 Comnute the straight-line interest expense to be reported in the income statement for the year ended December 31, 2015

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Client Acceptance And Retention Decisions Of Audit Firms In Nigeria

Authors: Richard Iyere Oghuma

1st Edition

6138946715, 978-6138946717

More Books

Students also viewed these Accounting questions

Question

socialist egalitarianism which resulted in wage levelling;

Answered: 1 week ago

Question

soyuznye (all-Union, controlling enterprises directly from Moscow);

Answered: 1 week ago