Assume that on Sept. 31, 2107 Euro air purchased a plane for 45,000,000 and expects the plane to… 1 answer below »

Assume that on Sept. 31, 2107 Euro air purchased a plane for 45,000,000
and expects the plane to last 4 years or 4,000,000 miles and a residual
value of 6,000,000. The plane was used for 350,000 miles in 2017. Calculate
depreciation and journal entries under each method of depreciation for
2017
a. Straight line Depreciation
b. Units of Production
c. Double declining Balance
2. On June 30, 2018 the market rate of interest is 9%. Ramsey Corporation
issues$550,000 of 12%, 20 year bonds payable at $701,813. The bonds pay
interest on June 30 and December 31. The company amortizes bond
premium using the effective interest method.
a. Prepare a bond amortization table for the first 6 years of the bond
term
b. Record the issuance of the bond payable on June 30, 2018, the
payment of interest on Dec. 31, 2018 and June 30, 2019

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