Calculate total cash interest payment, Marketing Management

Jump Up Corporation issued five-year, 5% bonds with a face value of $800,000 on January 1, 2011.  Interest is paid annually on December 31.  The market rate of interest on this date was 4%.   

REQUIREMENT:

A.  Show work to support the fact that Jump Up Corporation received $835,592 (rounded) on the date the bonds were issued. Provide the journal entry, with effects on the fundamental accounting  equation  shown, for this issuance on 1/1/11.

B.  Using Excel (or an equivalent program), prepare a five-year table similar to page 108 in our course outlines to amortize the premium/discount using the effective interest method.   Print out your table.  Then also print out the table, but with the formulas you used to compute the table amounts also printed out. 


B.  What is the total interest expense over the life of the bonds?  Total cash interest payment?  Total premium/discount amortization?
 
C.  Prepare the journal entry, with effects on the fundamental accounting equation  shown, to record the interest expense payment for the year-ended
 
D.  Show how the balance sheet would report the bond liability and related premium on December 31, 2012.

Posted Date: 2/18/2013 5:07:22 AM | Location : United States







Related Discussions:- Calculate total cash interest payment, Assignment Help, Ask Question on Calculate total cash interest payment, Get Answer, Expert's Help, Calculate total cash interest payment Discussions

Write discussion on Calculate total cash interest payment
Your posts are moderated
Related Questions
Steps in the marketing planning plans: in a corporate set up, two levels of planning are in practise 1.       Comprehence or overall company planning, and 2.       Specific

WHAT ARE THE PRODUCT MIX OF LG COMPANY IN REFRIGIRATOR

what is test marketing?explain the various approaches that are followed by FMCG companies in test marketing.

What the social factors have most influence on consumers purchasing

what is the relationship of nuclear chemistry to marketing management

What is difference between value proposition and positioning

type of labeling

what are some situation of straight rebuy

Illustrate the main roles of communication At a fundamental level, communication can assume one of four main roles: 1.  It can inform and make potential customers aware of a

Importance of Effective communication Effective communication is very important to organisations, which is why they use a variety of promotional tools. Advertising, sales promo