Purchase Solution

Bond interest expense

Not what you're looking for?

Ask Custom Question

On January 1, 2007, the Kings Corporation issued 10% bonds with a face value of $100,000. The bonds are sold for $96,000. The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2011. Kings records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31, 2007, is

Purchase this Solution
Solution Summary

The solution explains how to calculate the bond interest expense

Purchase this Solution
Free BrainMass Quizzes
Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Social Media: Pinterest

This quiz introduces basic concepts of Pinterest social media

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Bonds amortization of premium, bond interest expense

    of bond interest expense to be recognized

  • Interest expense when a company issues a bond at a discount

    The journal entry for a bond discount interest payment is Interest Expense Dr Bond Discount Cr Cash Cr The interest expense will be more than the interest paid The solution explains the relationship between interest expense and bond discount using

  • Calculating Annual Contract Rate

    Debit 2004 Jun 30 Bond Interest Expense Premium on Bonds Payable Cash Dec 31 Bond Interest Expense Premium on Bonds Payable Cash Please see the attached file.

  • Bond amortization under straight-line method

    Debit Credit 2004 Jun 30 Bond Interest Expense 45,067 «- Correct! Premium on Bonds Payable 14,933 «- Correct! Cash 60,000 Dec 31 Bond Interest Expense 45,067 «- Correct!

  • Bond Interest and Effective interest Methods

    accounted for 1 month = 3,223.55 x 1/6 = 537.26 Effective-interest method Interest Expense and Premium Amortization Schedule Date Debit to Debit to Credit to Bond Interest Bond Cash Premium Total Expense Premium Balance Liability

  • Journal Entries - Bonds

    For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense. 3. Determine the total bond interest expense to be recognized over the bonds' life. 4.

  • Bonds / Interest Expense

    218993 Bonds / Interest Expense 1. The issuance price of a bond does not depend on the a. face value of the bond. b. riskiness of the bond. c. method used to amortize the bond discount or premium. d. effective interest rate. 2.

  • Bond Amortization and Valuation

    Bond Interest Expense 14,000 Cash 14,000 B, Bond Interest Expense 28,000 Cash 28,000 C.

  • Calculate interest expense; prepare journal entries

    (2) The annual interest payment is constant as it is contract interest rate. (3) Interest expense each period is computed by multiplying preceding bond carrying amount by market interest rate.

  • Recording Bond Issuance

    Bond interest expense $ 3. Determine the total bond interest expense to be recognized over the bonds' life. (Omit the "$" sign in your response.) Total bond interest expense $ 4.

View More Related Solutions