Fall 2009 ACCO 320 Assignment #1

Fall 2009 ACCO 320 Assignment #1 - yield 12%. Record all of...

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Page 1 of 1 Fall 2009 ACCO 320 Assignment #1 Section ______ Due Date: Tuesday, September 29, 2009 Student #1: Name _________________________ ID______________ Student #2: Name _________________________ ID______________ Student #3: Name _________________________ ID______________ Student #4: Name _________________________ ID______________ LONG-TERM FINANCIAL LIABILITIES The two cases below are independent. In each case, the company’s fiscal year end is December 31. This company amortizes any bond premium or discount on the interest payment dates and at year end. The effective interest method is used for bond discount or premium amortization. Problem 1. ABC Company sells $250,000 of 10% bonds on March 1, 2007. The bonds pay interest on September 1 and March 1. The bonds’ due date is September 1, 2010. The bonds
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Unformatted text preview: yield 12%. Record all of the relevant journal entries from the date of bond issuance until December 31, 2008. (Please show all the necessary procedures of your work, including the amortization table.) Required: Problem 2. XYZ Company sells $600,000 of 12% bonds on June 1, 2007. The bonds pay interest on December 1 and June 1. The bonds due date is June 1, 2011. The bonds yield 10%. On October 1, 2008, this firm buys back $120,000 worth of bonds for $126,000, which includes the payment for accrued interest. Record all of the relevant journal entries from the date of bond issuance until October 1, 2008. (Please show all the necessary procedures of your work, including the amortization table.) Required:...
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