What is total amount of interest expense incurred, Accounting Basics

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What is total amount of interest expense incurred

For a $100,000 face value bond issued April 1, 2014 for Ritzy Diner, with 14% stated annual interest rate, paying interest semi-annually, with a two year maturity, with interest payments at end of last day of each period:

1. What are proceeds of the issue if investors discount it at 10% annually?

2. Prepare a complete amortization table in good form

3. Prepare journal entry at issuance on April 1, 2014

4. Prepare journal entry at first interest payment on September 30, 2014

5. Prepare any necessary journal entry on December 31, 2014

6. Prepare journal entry for second interest payment on March 31, 2015

7. What is total amount of interest expense incurred over course of the bond?

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Accounting Basics: What is total amount of interest expense incurred

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Recent Questions Asked Accounting Basics

Q : The effective interest rate method of amortization

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: What is total amount of interest expense incurred

Reference No:- TGS0555925

Recent Questions Asked Accounting Basics

Q : The effective interest rate method of amortization

Q : Desired required rate of return

Q : Determine the straight-line method of amortization

Q : What was the net sales figure

Q : What is total amount of interest expense incurred

Q : Financial risk management

Q : What are proceeds of the issue if investors discount

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