Sawyer corporation issued 200000000 face value bonds on 1st

Assignment Help Financial Accounting
Reference no: EM13352085

Sawyer Corporation issued $200,000,000 face value bonds on 1st July, 2013. The bonds are a 20 year issue and carry a coupon (face) rate of 4 percent. The bonds were issued when rates in the open market were 6%. Interest is paid semi-annually.

a. Purpose the entry to record the issuance of the bonds on Sawyer's books.

b. The bond indenture agreement needs that Sawyer deposit money in a bond sinking fund semiannually starting with the first interest payment date of 1st January, 2014 and ending on the last interest payment date. The controller evaluates that the annual rate of interest earned on the investments in the sinking fund will be 6 percent. What amount must be deposited semiannually in order to have sufficient money in the fund to pay off the bonds in 20 years?

Reference no: EM13352085

Questions Cloud

A purpose a statement of cash flows for artes gallery for : a purpose a statement of cash flows for artes gallery for the year ended 30th june 2012 using the preformed provided.
Q1 how do you find the concentration of a solution when : q1. how do you find the concentration of a solution when given the info that the concentration of the stock solution is
In the present year azure company has 350000 of remaining : in the present year azure company has 350000 of remaining operating income before deducting any compensation or other
Q diploid nuclei of the ascomycete neurospora crassa : q. diploid nuclei of the ascomycete neurospora crassa contain 14 chromosomes. a single diploid cell in an ascus will
Sawyer corporation issued 200000000 face value bonds on 1st : sawyer corporation issued 200000000 face value bonds on 1st july 2013. the bonds are a 20 year issue and carry a coupon
Picasso industries is allowing for replacing an old piece : picasso industries is allowing for replacing an old piece of machinery which cost 150000 and has 70000 of accumulated
Q1 the patients skin is warm to touch and she has a : q1. the patients skin is warm to touch and she has a low-grade fever of 100.2 f. the neutrophil blood count is less
1 create journal entries for each transaction2 using the : 1. create journal entries for each transaction.2. using the journal entries as a guide show whether every transaction
Q1 ecoli was incubated with aeration in a nutrient medium : q1. e.coli was incubated with aeration in a nutrient medium contain two carbon sources and the following growth curve

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Would you be still be willing to invest in the company

Should personal preference play any part in investment decisions? For example, if you don't care for Pepsi (the drink), would you be still be willing to invest in the company?

  Question carin and ray are partners in an accounting firm

question carin and ray are partners in an accounting firm. the partners have entered into an arms length agreement

  What should she do when she want to lose mpi as client

Consider the conflict between Adams and Schmidt. Assuming that Schmidt believes the inventory adjustment and vacation pay accrual must be made and that she does not want to lose MPI as a client, what should she do?

  How course has affected you in professional development

Discuss how this course has affected you in your professional development as a student, and as a person, as well as how it has encouraged you on your academic path.

  What the impact will be on company profits

Prepare an analysis showing what the impact will be on company profits if this tour is discontinued and the company's tour director has been criticized because only about 50% of the seats on the company's tours are being filled as compared to an aver..

  What is the significance of the subjective data

What is the significance of the subjective and objective data provided with regard to follow-up diagnostic/laboratory testing, education, and future preventative care? Provide rationale for your answer.

  How much is balance of retained earnings in current year

Prepare a summary of information with appropriate cross referencing between sources and paraphrase and appropriately reference source material (Harvard style referencing).

  How much depreciation should be taken

It also is 5-year recovery property. How much depreciation should be taken for 2010 assuming the company uses the accelerated depreciation method under MACRS, but does not choose to make the election to expense or to take bonus depreciation

  Preparing a trial balance

Journalizing transactions, posting to T-accounts, and preparing a trial balance

  What can a public accounting firm do

What can a public accounting firm, such as the one in which Tiffany works, do to ensure that audits of computerized accounting information systems are conducted efficiently and effectively?

  Purpose an analysis - buy bindings and leave facilities idle

X-Perience's accountants predict that purchasing the bindings from Livingston will enable the company to avoid $1,800 of fixed overhead. Purpose an analysis to show whether X-Perience should make or buy the bindings.

  Which financial statement does the input come from

Name one and explain how it is computed? Which financial statement(s) does input come from? Most importantly, what does it tell you about the financial performance or health?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd