Ne1 an Accounting Major???

Grimmz · 04-25-2006, 10:00 AM

It's that time again, I got my Accounting Final tommarow neone ne good at accounting?

Jiffy Corporation issued ten-year term bonds on January 1, 20x2, with a face value of $800,000. The face interest rate is 6 percent and interest is payable semiannually on June 30 and December 31. The bonds were issued for $690,960 to yield an effective annual rate of 8 percent. The effective interest method of amortization is used.

19. The journal entry on June 30, 20x2, to record the payment of interest and amortization of discount will include a:

(a) debit to Bond Interest Expense for $24,000.
(b) credit to Cash for $27,638.
(c) credit to Bond Discount for $3,638.
(d) debit to Bond Interest Expense for $32,000.

20. The journal entry to be recorded on December 31, 20x2, for the payment of interest and the amortization of discount will include a:
(a) debit to Bond Interest Expense for $24,000.
(b) credit to Cash for $27,784.
(c) credit to Bond Discount for $3,638.
(d) credit to Bond Discount for $3,784.

I know the answers to these questions but I have no idea why, when I do the problem I get a completely different answer everytime...

Grimmz · 04-25-2006, 10:15 AM

LoL nvm I called one of my friends and got it, but if neone else is takin accounting and wants the answer i'll leave this up here...or if i gotta post more questions...

DAMNIT I HATE EXAMS!....

FritoBandito · 04-25-2006, 10:21 AM

I was a business major, accounting sucks. You can work 3-4 hrs on one problem and make a tiny error that throws the whole thing off.

01GTBlown · 04-25-2006, 10:28 AM

Ummmmmmmmmmm, yeah i'll pass! I'm at wory pretty busy, i'll try it tonite...Prolly won't have a clue though!

Red99GT · 04-25-2006, 10:38 AM

i'm a finance major.. we do those same questions in my finance classes

Grimmz · 04-25-2006, 10:42 AM

Quote:

Originally Posted by Red99GT

i'm a finance major.. we do those same questions in my finance classes

yeah the final two chapters in the book are all Bonds, and financing stuff, I got the hang of it for the most part, our exam is about 50% math related problems and 50% conceptual... it's not enough to know how to do a problem, u also gotta understand why and how, and all the other BS along with it...

F'n A Cotton F'n A...

Grimmz · 04-25-2006, 10:48 AM

By the way the answer for the first one is C, and D for the second one... here's what I ****ed up... when I divided the interest expense and Interest payable for time I divided by 6 instead of 2 for some reason... Grimmz = Idiot!... GOSH!...

so yea...

Interest Expense = Carrying Value X Market Rate X Time

Interest Payable = Issued Price X Bond % X Time

the difference in the two is the discount...hence the 3638, then you add that to the carrying value to reduce the liability and then do the whole thing over again and that gets you the new discount for the second payment of 3,784

not that neone cared, but if you did...

Red99GT · 04-25-2006, 10:51 AM

hey wanna do my finance homework and my accounting paper while you're at it?!?

*madmatt* · 04-25-2006, 11:03 AM

No clue as Im an engineering major, but I must join you and say that EXAMS DO SUCK DONKEY BALLS. 4 more days...4 more days. Its funny though, it doesnt make me feel any better that I only have 4 more days, as I have exams the whole time, which are all HARD AS BALLS!

Red99GT · 04-25-2006, 11:04 AM

damn... i dont finish till may 15...

Grimmz · 04-25-2006, 01:57 PM

Quote:

Originally Posted by Red99GT

damn... i dont finish till may 15...

i'm done Fri.! GIGGITY! 4 months of SUMMER!...

04-25-2006, 10:00 AM	#1 (permalink)
Grimmz Jack Touched Me...I Cried Join Date: Aug 2005 Location: Tallahassee, FL/ Gaithersburg, MD Posts: 3,751	Ne1 an Accounting Major??? It's that time again, I got my Accounting Final tommarow neone ne good at accounting? Jiffy Corporation issued ten-year term bonds on January 1, 20x2, with a face value of $800,000. The face interest rate is 6 percent and interest is payable semiannually on June 30 and December 31. The bonds were issued for $690,960 to yield an effective annual rate of 8 percent. The effective interest method of amortization is used. 19. The journal entry on June 30, 20x2, to record the payment of interest and amortization of discount will include a: (a) debit to Bond Interest Expense for $24,000. (b) credit to Cash for $27,638. (c) credit to Bond Discount for $3,638. (d) debit to Bond Interest Expense for $32,000. 20. The journal entry to be recorded on December 31, 20x2, for the payment of interest and the amortization of discount will include a: (a) debit to Bond Interest Expense for $24,000. (b) credit to Cash for $27,784. (c) credit to Bond Discount for $3,638. (d) credit to Bond Discount for $3,784. I know the answers to these questions but I have no idea why, when I do the problem I get a completely different answer everytime... __________________ 2003 Manual V6 "ETHEL" My CarDomain::Updated 12/31/05:: Engine Start-Up, Rev,and Walk Around , Drive By 3.8 Mustang Forum Exhaust's DSG Registry #0032 Props to Slither for the Sig!!!

04-25-2006, 10:15 AM	#2 (permalink)
Grimmz Jack Touched Me...I Cried Join Date: Aug 2005 Location: Tallahassee, FL/ Gaithersburg, MD Posts: 3,751	LoL nvm I called one of my friends and got it, but if neone else is takin accounting and wants the answer i'll leave this up here...or if i gotta post more questions... DAMNIT I HATE EXAMS!.... __________________ 2003 Manual V6 "ETHEL" My CarDomain::Updated 12/31/05:: Engine Start-Up, Rev,and Walk Around , Drive By 3.8 Mustang Forum Exhaust's DSG Registry #0032 Props to Slither for the Sig!!!

04-25-2006, 10:21 AM	#3 (permalink)
FritoBandito Married. Join Date: Jun 2005 Location: OK Posts: 1,234	I was a business major, accounting sucks. You can work 3-4 hrs on one problem and make a tiny error that throws the whole thing off. __________________ 2004 OXFORD GT Parts that matter:K&N,O/R-H,Flow 40's,Xcal2,FRPP 4.10s, Bullitt Susp. kit

04-25-2006, 10:38 AM	#5 (permalink)
Red99GT Chris Join Date: Dec 2005 Location: Yonkers, New York Posts: 237	i'm a finance major.. we do those same questions in my finance classes __________________ 99 Mustang Gt, red 5 speed mac off-road prochamber, slp loudmouth I catback, BBK cai, Eibach Springs 3.73s, short-throw shifter, bbk 65mm throttlebody Ford Racing king cobra clutch, powerslot rotors Appearance: grill delete, 8 inch antenna, 03 Cobra Rear wing, Mach 1 chin spoiler, rearviews painted to match, smoked headlights, steeda cowl hood, 8000k HID kit, matching foglight bulbs

04-25-2006, 10:48 AM	#7 (permalink)
Grimmz Jack Touched Me...I Cried Join Date: Aug 2005 Location: Tallahassee, FL/ Gaithersburg, MD Posts: 3,751	By the way the answer for the first one is C, and D for the second one... here's what I **ed up... when I divided the interest expense and Interest payable for time I divided by 6 instead of 2 for some reason... Grimmz = Idiot!... GOSH!... so yea... Interest Expense = Carrying Value X Market Rate X Time Interest Payable = Issued Price X Bond % X Time the difference in the two is the discount...hence the 3638, then you add that to the carrying value to reduce the liability and then do the whole thing over again and that gets you the new discount for the second payment of 3,784 not that neone cared, but if you did... __________________ 2003 Manual V6 "ETHEL" My CarDomain::Updated 12/31/05:: Engine Start-Up, Rev,and Walk Around , Drive By 3.8 Mustang Forum Exhaust's DSG Registry #0032 Props to Slither for the Sig!!!**

04-25-2006, 10:51 AM	#8 (permalink)
Red99GT Chris Join Date: Dec 2005 Location: Yonkers, New York Posts: 237	hey wanna do my finance homework and my accounting paper while you're at it?!? __________________ 99 Mustang Gt, red 5 speed mac off-road prochamber, slp loudmouth I catback, BBK cai, Eibach Springs 3.73s, short-throw shifter, bbk 65mm throttlebody Ford Racing king cobra clutch, powerslot rotors Appearance: grill delete, 8 inch antenna, 03 Cobra Rear wing, Mach 1 chin spoiler, rearviews painted to match, smoked headlights, steeda cowl hood, 8000k HID kit, matching foglight bulbs

04-25-2006, 11:03 AM	#9 (permalink)
madmatt Traitor...lol Join Date: Sep 2004 Location: Lexington, SC Posts: 7,922	No clue as Im an engineering major, but I must join you and say that EXAMS DO SUCK DONKEY BALLS. 4 more days...4 more days. Its funny though, it doesnt make me feel any better that I only have 4 more days, as I have exams the whole time, which are all HARD AS BALLS! __________________ RPMPlanets

04-25-2006, 11:04 AM	#10 (permalink)
Red99GT Chris Join Date: Dec 2005 Location: Yonkers, New York Posts: 237	damn... i dont finish till may 15... __________________ 99 Mustang Gt, red 5 speed mac off-road prochamber, slp loudmouth I catback, BBK cai, Eibach Springs 3.73s, short-throw shifter, bbk 65mm throttlebody Ford Racing king cobra clutch, powerslot rotors Appearance: grill delete, 8 inch antenna, 03 Cobra Rear wing, Mach 1 chin spoiler, rearviews painted to match, smoked headlights, steeda cowl hood, 8000k HID kit, matching foglight bulbs

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