Amortization of discount on note

Related BrainMass Solutions

• Entries for zero-interest- bearing notes

  $39,674 Credit: Computer $39,674 For amortization of the note, before the adjusting entry, the note information appearing on the book is as follows: Notes Payable: $400,000 Discount: ($151,631) Carrying Value

• Calculate interest expense; prepare journal entries

  amortization will be recorded in the same manner every semi annual interval in 20 instalments on June 30 and Dec 31 every year till full amortization of discount Note 2 : When bonds are issued at discount discount is treated as addition to of interest

• Partial Refund of Note Payable, Straight line Amortization

  Notes payable, Discounted Note Payable, Partial Refund of Note Payable, Amortization of Discount on Note Payable: Dear Student, Please find your solution attached.

• Recording Issuance of Bonds, Payment of Interest, and Amortization of Bond Discount

  (b) Prepare the journal entry to record the accrual of interest and the amortization of the discount on December 31, 2006.

• Journal Entries - Bonds

  69,059 Discount on Bonds Payable 9,059 Cash 60,000 To record six months' interest and discount amortization. 2004 Dec. 31 Bond Interest Expense 69,059 Discount on Bonds Payable 9,059 Cash

• Bond Discount Amortization Using Straight-Line and Effective Interest Methods

  This solution illustrates how to compute and record amortization of a discount on a bond investment and receipt of cash interest income on that investment using the straight-line and effective interest methods.

• Present Value and Amortization of Note

  431743 Present Value and Amortization of Note On December 31,2011 Green company finished consultation services and accepted in exchange a promissory note with a face value of $500,000, a due date of December 31, 2014, and a stated rate of 8%, with interest

• Using Straight-Line Amortization to Compute the Gain/Loss

  Bond Payable $3,000,000 Loss on Bond Retirement $135,600 Discount on Bonds Payable $30,600 Cash $3,105,000 Note: The amount here is accounting loss on re-acquisition of bonds.

• Notes Receivable Journal Entries

  The amount of discount now is 16,155.90-6,142.85 = 10,013.05. The carrying value of note is 72,000-18,000-10,013.05 = 43,986.95.

• Accounting for Semi Annual Bonds Payable

  Sept.1: Recognized interest expense including the amortization of the discount and made the semiannual cash payment for interest. Dec. 31: Recognized accrued interet expense including the amortization of the discount.