Reference no: EM1357685
On July 1, 2002, Raptor Corporation, a wholesaler of used robotic equipment, issued $7,500,000 of ten-year, 10% bonds at an effective interest rate of 12%, Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
1. Journalize the entry to record the amount of the cash proceeds from the side of the bonds. Round the answer the nearest dollar.
2. Journalize the entries to record the following:
a. The first semiannual interest payment on December 31, 2002, and the amortization of the bond discount, using the straight-line method. (Round to the nearest dollar.
b. The interest payment on June 30, 2003, and the amortization of the bond discount, using the straight-line method.
3. Determine the total interest expense for 2002. (Hint: The answer is: $418,010)
Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest? Explain.
|
Explain how have monitoring mechanisms or players changed
: Explain How have monitoring mechanisms/players changed over time and What are the trends and changes and in your view have these changes improved corporate governance?
|
|
Implementing the lockbox system
: Jarrett Enterprises is considering whether to pursue a restricted or relaxed current asset investment policy. The firm's yearly sales are $400,000; its fixed assets are $100,000; debt and equity are each 50% of total assets.
|
|
Explain centralization vs decentralization
: centralization and decentralization and standardization versus mutual adjustment
|
|
Elucidate what is his irr for this investment
: If the bond matures in five years and Jerry can buy one now for £3500, elucidate what is his IRR for this investment.
|
|
Journal entries of raptor corporation
: On July 1, 2002, Raptor Corporation, a wholesaler of used robotic equipment, issued $7,500,000 of ten-year, 10% bonds at an effective interest rate of 12%, Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year o..
|
|
Create class having constructor to recieve two ints
: Create a class (in C++)named Card. The class should have two int data members named face and suit.The class should have a constructor that recieves the two ints and uses them to initialize the data members.
|
|
What average power was developed
: what average power was developed. A curve of radius 70 m is banked for a design speed of 110 km/h. If the coefficient of static friction is 0.30 (wet pavement), at what range of speeds can a car safely make the curve.
|
|
Explain the types of systems that are used for enterprise
: Explain the types of systems that are used for enterprise-wide knowledge management and how they provide value for businesses
|
|
Wal-mart case study
: Is Wal-Mart guilty of running sweatshops or is the firm being victimized - Wal-Mart Case Study
|