Question

Deane Company issues $5 million, 10-year, 9% bonds at 96, with interest payable on July 1 and January 1.The straight-line method is used to amortize bond discount.

Prepare the journal entry to record interest expense and bond discount amortization on July 1, 2008, assuming no previous accrual of interest.

Prepare the journal entry to record interest expense and bond discount amortization on July 1, 2008, assuming no previous accrual of interest

Answer 1

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 40,000 shares of cumulative preferred 2% stock, $75 par and 100,000 shares of $50 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $36,000; second year, $90,000; third year, $115,000; fourth year, $140,000.