Problem on interest payable annually

Reference no: EM13154393

Novastar Corporation issued 2,000 of its 1,000, 10% ten-year bonds dated July 1, Year 1, at a time when the market paid 9% for bonds of similar risk. Interest is payable annually. The bonds were properly carried at $2,134,000 upon issue. On its December 31, Year 1 financial statements, Novastar Corporation would display the following balances:

Unamortized Accrued Interest Interest ?Bonds Payable Premium Payable Expense

A. $2,000,000 $126,060 $200,000 $192,060

B. $2,000,000 $130,030 $100,000 $ 96,030

C. $2,000,000 $141,940 $200,000 $192,060

D. $2,000,000 $137,970 $100,000 $ 96,030

Reference no: EM13154393

Questions Cloud

What is the standard half-cell (eo) for silver : A half-cell, made by dipping a silver wire into 0.05 M aqueous AgNO, at 298 OK, develops a half-cell potential of +0.740 volts. What is the standard half-cell (Eo) for silver?

Average accounting return, and profitability index : Evaluate the following investment criteria: NPV, IRR, Payback Period, Discounted Payback Period, Average Accounting Return, and Profitability Index. Show both the result and the Excel formula you used to obtain the result. Discuss whether you would o..

Calculate each project-s expected return and variance : Calculate each project's expected return, variance, and standard deviation. Rank the projects on the basis of (1) expected return and (2) risk. Which project would you choose?

How many liters of oxygen collected over h2o : How many liters of oxygen collected over H2O and measured at 27 degrees Celsius and 745.0 mm Hg can be prepared by decomposing 4.421 grams of gold (III) oxide? The vapor pressure of H2O at 27 degrees Celsius is 26.7 mm Hg.

Problem on interest payable annually : Novastar Corporation issued 2,000 of its 1,000, 10% ten-year bonds dated July 1, Year 1, at a time when the market paid 9% for bonds of similar risk. Interest is payable annually.

Find the nominal interest rate for a debt security : find the nominal interest rate for a debt security given the following information: real rate = 2%, liquidity premiun = 2%, defalult risk premium = 4%, maturity risk premium = 3%, and the inflation premium = 3%

What is the specific heat for the metal : It takes 49.0 J to raise the temperature of a 9.60 g piece of unknown metal from 13.0 degrees celsius to 24.5 degrees celsius. what is the specific heat for the metal?

Individual federal income tax return : Brown earned net operating income of $80,000 and had a long-term capital loss of $3,000. Also, Jay withdrew $40,000 from the corporation. Jay must report $80,000 of Brown Corporation income and may deduct the $3,000 loss on his individual Federal ..

Variable predetermined manufacturing overhead rates : Compute the total, fixed, and variable predetermined manufacturing overhead rates. Compute the total, controllable, and volume overhead variances.

User Account

All Pages