E14-8b (determine proper amounts in account balances) presented below

E14-8B (Determine Proper Amounts in Account Balances) Presented below are three independent situations.

(a) Snider Corporation incurred the following costs in connection with the issuance of bonds: (1) printing and engraving costs $40,000; (2) legal fees $120,000, and (3) commissions paid to underwriter $320,000. What amount should be reported as Unamortized Bond Issue Costs, and where should this amount be reported on the balance sheet?

(b) Banks Co. sold $5,000,000 of 6%, 10-year bonds at 104 on January 1, 2014. The bonds were dated January 1, 2014, and pay interest on July 1 and January 1. If Banks uses the straight-line method to amortize bond premium or discount, determine the amount of interest expense to be reported on July 1, 2014, and December 31, 2014.

(c) Cey Inc. issued $1,000,000 of 10%, 10-year bonds on June 30, 2014, for $885,296. This price provided a yield of 12% on the bonds. Interest is payable semiannually on December 31 and June 30. If Cey uses the effective-interest method, determine the amount of interest expense to record if financial statements are issued on October 31, 2014.







Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 10% with the coupon code: best10