 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Accounting Interest Expense Question
Cramer Company sold 5 year, 8% bonds on October 1, 2006. The face amount of the bonds was $100,000, while the issue price was $102,000. Interest is payable on April 1 of each year. The fiscal year of Cramer Company ends on December 31. How much interest expense will Cramer Company report on its December 31, 2006 income statement (assume straight line amortization)?
- answer was $1900 but I don't get how my work: I was confused on how I should do the straight line amortization, should I start from after October? Also, I know bonds were sold at premium. But that's about it. |
||||
|
|
Check out some similar questions!
ABC Company buys a $10 million notional interest rate cap for $200,000.00 The entry is recorded as: Interest Rate Cap $200,000 DR Cash $200,000 CR A schedule of caplet expenses is provided, and the first one is $400.00. How should this expense be recorded? How should the fair market value...
A flat is owned by Mr Yew, the business does not pay monthly rental for using the flat as home office space. However, the office space used by Yew Services may be rented out for $1,800 had it not been occupied by the business. The average monthly utilities expenses for Mr Yew's HDB flat is $480, of...
Randell Company issues 7%, 10-year bonds with a par value of $150,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 93¼. The straight-line method is used to allocate interest expense. What is the amount of...
The following information comes from the accounts of Jersey Company. Account Title Beginning Balance Ending Balance Accounts receivable $35,000 $40,400 Allowance for doubtful accounts 1,530 2,840 Notes receivable 54,500 ...
View more questions Search
| Question Tools | Search this Question |
|
