Ask Experts Questions for FREE Help !
Ask
    AKDLM's Avatar
    AKDLM Posts: 2, Reputation: 1
    New Member
     
    #1

    Feb 8, 2011, 11:14 PM
    Journal entires for bonds and computing interest on bonds
    I need help with finding interest expense on bonds. I can't find the interest expense from the information below for problems 1 & 2. I tried using examples from my book but I still can't figure it out.

    Atlantis Inc. produces and sells voltage regulators. On July 1, 2007, Atlantis Inc. issued $800,000 of 10-year, 14% bonds at an effective interest rate of 13%. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.

    1. Journalize the entry to record the first semiannual interest payment on December 31, 2007, including the amortization of the bond premium, using the straight-line method. (Round to the nearest dollar.)

    2. Journalize the entry to record the interest payment on June 30, 2008, and the amortization of the bond premium, using the straight-line method.

    samantha357's Avatar
    samantha357 Posts: 2, Reputation: 1
    New Member
     
    #2

    Feb 9, 2011, 03:00 AM
    Me and my partner are both single parents and live apart we are planning on moving into together to be a family we both work 16 hours and find it hard to save for a bond are properties are far to small for all 4 ov us to share

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Computing current price of bonds [ 4 Answers ]

My company has $1000 par value bonds outstanding at 8% interest. The bonds will mature in 25 years. How do I compute the current price of the bonds if the present yield to maturity is 7%?

Journal entires for bonds and computing interest on bonds [ 3 Answers ]

Journal entires for bonds and computing interest on bonds -------------------------------------------------------------------------------- I am having a difficult time understanding bonds. Here is a question that stumps me: Record the sale of $4 million of 10 year, 6% corporate bonds...

Journal entires for bonds and computing interest on bonds [ 2 Answers ]

I am having a difficult time understanding bonds. Here is a question that stumps me: Record the sale of $4 million of 10 year, 6% corporate bonds priced at 104 plus two months accrued interest. If interest payments are semiannual, and the interest expense account was debited for $53,600 when...


View more questions Search