The following transactions were completed by Montague Inc., whose fiscal year is thecalendar year:2014July 1. Issued $55...

Get help with any kind of assignment - from a high school essay to a PhD dissertation

  1. Order Custom Essay, Course Work, Research and Term Papers

The following transactions were completed by Montague Inc.

April 14, 2018

The following transactions were completed by Montague Inc., whose fiscal year is the

calendar year:

2014

July 1. Issued $55,000,000 of 10-year, 9% callable bonds dated July 1, 2014, at a market

(effective) rate of 7%, receiving cash of $62,817,040. Interest is payable semian-

nually on December 31 and June 30.

Oct. 1. Borrowed $450,000 by issuing a six-year, 8% installment note to Intexicon

Bank. The note requires annual payments of $97,342, with the first payment oc-

curring on September 30, 2015.

Dec. 31. Accrued $9,000 of interest on the installment note. The interest is payable on

the date of the next installment note payment.

31. Paid the semiannual interest on the bonds. The bond premium is amortized an-

nually in a separate journal entry.

31. Recorded bond premium amortization of $390,852 which was determined

using the straight-line method.

31. Closed the interest expense account.

2015

June 30. Paid the semiannual interest on the bonds. The bond premium is amortized

annually in a separate journal entry.

Sept. 30. Paid the annual payment on the note, which consisted of interest of $36,000

and principal of $61,342.

Dec. 31. Accrued $7,773 of interest on the installment note. The interest is payable on

the date of the next installment note payment.

31. Paid the semiannual interest on the bonds. The bond premium is amortized

annually in a separate journal entry.

31. Recorded bond premium amortization of $781,704, which was determined

using the straight-line method.

31. Closed the interest expense account.

2016

June 30. Recorded the redemption of the bonds, which were called at 103. The bal-

ance in the bond premium account is $6,253,632 after payment of interest

and amortization of premium have been recorded. (Record the redemption

only.)

Sept. 30. Paid the second annual payment on the note, which consisted of interest of

$31,093 and principal of $66,249.

Instructions

1. Journalize the entries to record the foregoing transactions.

2. Indicate the amount of the interest expense in (a) 2014 and (b) 2015.

3. Determine the carrying amount of the bonds as of December 31, 2015.










OUR SERVICE CHARTER






  • 24/7 Customer Support

    Our team of writers prides in high-level competence. The writers have the required expertise that enables them to deliver quality papers that match with the requirements of the grading rubric. In the absence of the rubric, we ensure that the writers follow the clients’ instruction brief to the letter. We can confidently assure our clients to expect nothing short of a pass from the papers that we deliver. Importantly, we have qualified writers who handle different areas of study. This diversification enables us to allot clients’ orders to the writer who is well seasoned in the subject area of study. It also enables the team to become more professional due to specialization. Our clients should put their trust in our service delivery and expect to successfully attain high grades at all times. The fact that we offer free revision reflects our dedication in delivering high quality papers that match with our clients’ expectations.

  • Excellent Quality Work

    Grammar is one of the elements that we take seriously in our service delivery. Beside the use of spell checkers, we progressively take our writers through the essentials of a quality paper that features information clarity. Importantly, we encourage our writers to avoid coming up with a paper that deviates from the elements that appear on the client’s instruction brief. It means that the papers that we deliver denote well researched information that is rich in details. Additionally, the papers usually contain exhaustive details on any instruction that a client submitted. It is the tireless application of our writers’ efforts that makes us stand out when it comes to the delivery of excellent quality work. Notably, our writers use quality resources when digging up information that a paper requires. They are usually aware of the sources that contain rich information. Our past clients have proved that we give nothing short of quality work through giving us a positive feedback.

  • Free Revisions

    The papers that we deliver usually reflect a high quality level. However, there is always a room for any additional fine-tuning touch in line with a client’s preference without any additional charges. To begin with, a client has discretion to make a choice on their preferred top writer from our team. Such a writer could have handled past work for the client and received a positive review from the same. It means that the client has confidence of the quality of service that the writer delivers. Secondly, a client has an option of making use of our editing services. Our editors are always on standby to revise the paper and ensure that it matches with the expectations of a client that the instruction brief had detailed. The revision covers content adjustment that removes off-topic details, addition of sources, removal of language style errors, and assessment of the referencing style in order to enhance compliance.

  • 100% Confidentiality

    We mind about the interests of our clients holistically. It is for this reason that we maintain high-level confidentiality in regard to our clients’ personal information. Importantly, we use the information for purposes that relate with our services only. The only information that we require relates to our clients’ writing needs. It is also important to note that our clients’ payment information is secure with us. If there is any query in regard to the payment information, then our support team is always willing to provide any clarifications in a prompt manner. Confidentiality extends to the fact that a client made use of our services. It means that we hold our relationship with our clients in secrecy. Importantly, our confidentiality measures beat any advanced security measure that can identify any information regarding our relationship with our clients. It means that our clients transact with us freely without any fear of information leakage.




Related Questions