Ask Experts Questions for FREE Help !
Ask
    ladybug 22122's Avatar
    ladybug 22122 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 23, 2013, 08:02 PM
    Appling Enterprises issued 8% bonds with a face amount of 400,000 on January 1, 2011.
    Appling Enterprises issued 8% bonds with a face amount of 400,000 on January 1, 2011. The bonds sold for 331,364 and mature in 2030 (20 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and Dec. 31. Appling determines interest expense at the effective rate. Appling elected the option to report these bonds at their fair value. The fair values of the bonds at the end of each quarter during 2011 as determined by their market values in the over-the-counter market were: March 31 - 350,000, June 30 - 340,000, September 30 - 335,000 and Dec. 31 - 342,000.

    1. By how much will Appling's earning be increased or decreased by the bonds (ignoring taxes) in the March 31 quarterly financial statement?
    2. By how much will Appling's earning be increased or decreased by the bonds (ignoring taxes) in the June 30 quarterly financial statement?
    3. By how much will Appling's earning be increased or decreased by the bonds (ignoring taxes) in the September 30 quarterly financial statement?
    4. By how much will Appling's earning be increased or decreased by the bonds (ignoring taxes) in the December 31 quarterly financial statement?

Check out some similar questions!

Company issued bonds with a face amount of $1000000 at 97.6%. The bonds are secured, [ 0 Answers ]

Company issued bonds with a face amount of $1000000 at 97.6%. The bonds are secured, have a stated rate of 7.5%, are callable in 5 years, and mature in 20 years. They pay interest semi-annually on July 1 and January 1

Issued $400,000 of 10 year, 6% bonds at 105, with interest payable semiannually [ 1 Answers ]

Journalize

On January 1, 2011, Citrus Retail Co. issued a $500,000, 5 year, 8% installment note [ 1 Answers ]

On January 1, 2011, Citrus Retail Co. issued a $500,000, 5 year, 8% installment note payable with payments of $100,000 principal plus interest due on January 1 of each year for the next 5 years. Hide 1. Prepare the adjusting journal entry at December 31, 2011 to accrue interest for the year.

On January 1, 2011,zee Co issued ten-year bonds with a face value of $1,000,000 an [ 2 Answers ]

On January 1, 2011, Zee Co issued ten-year bonds with a face value of $1,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. How much is the issue price of the bond?

Issued 3,000, 8%, 5-year, $1,000 bonds dated January 1, 2011, at face value [ 1 Answers ]

I need to record the journal entry for interest paid on July 1 and record interest paid on dec 31. I am stuck

View more questions Search
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.