summer 2008 final - please be specific. Balance sheet long...

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$1 Q3. On march 1, 2004, Allen Inc issued a $1000, 8%, five year bond payable for $1060. The bond was dated on March 1, 2004, and interest is payable each Feb 28 and Aug 31. 1. What is the journal entry Allen should make on 3/1/04 to record the issuance of the bon? 2. What is the journal entry allen should make on aug 31 2004 to record the interest payment? Assume straight line amortization of any discount or premium. 3. What is journal entry allen should make on dec 31 2004 to record the year end adjustment? 4. Was the bond issued at par, at a premium, or a t adiscount? 5. What is the carrying value (or book value) of the bond on dec 31 2004? 6. How is the carrying value of the bond reported in the financial statements of allen, inc?
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Unformatted text preview: please be specific. Balance sheet long term liabilities section 1050 bonds payable 7. On what date does the bond issue mature? Feb 28 2009 (marc 1 09 also acceptable Q5 On January 1 2007, P corporation purchased a long term investment 5000 shares of the outstanding common stock of S comporation at $30 per share. During 2007, the following events occurred. 1. Give the journal entry for P corporation to record the investment on jan 1 2007 Q6 Satori, Inc. reported the following info for 2004 and 2003 Compute the net cash flow from operating activities for 2004 under the indirect method....
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