User Account

All Pages

Calculate the carrying value of the bonds

Assignment Help Accounting Basics
Reference no: EM132033782

Problem - Eagle Corporation sold $500,000, 8%, 10-year bonds on January 1, 2014. The bonds pay interest semiannually on June 30th and December 31st. The company uses straight-line amortization for premiums and discounts. Financial statements are prepared annually.

(1) Prepare the journal entry on January 1, 2014 to record the issuance of the bonds assuming they sold at 99.

(2) Prepare the journal entry necessary on June 30th to record the first interest payment, assuming the bonds sold at 99.

(3) Calculate the carrying value of the bonds at the end of the fifth year (December 31, 2018).

(4) Calculate the total cost of borrowing.

Reference no: EM132033782

Questions Cloud

What is the reading on the scale : A person whose mass is m = 56.0 kg steps on a mechanical bathroom scale placed on an inclined plane that makes the angle a = 22.1° with the horizontal
Applied to m1 to slowly accelerate the group of rocks : What force, FA, must be applied to m1 to slowly accelerate the group of rocks from the road at 0.250 m/s2?
What are the ears on these two loans : Two banks in the area offer 25-year, $230,000 mortgages at 5.7 percent and charge a $3,700 loan application fee.
What is the tension in the rope if she accelerates upward : Suppose a 68.5 kg gymnast climbs a rope. What is the tension in the rope if she climbs at a constant speed?
Calculate the carrying value of the bonds : Eagle Corporation sold $500,000, 8%, 10-year bonds on January 1, 2014. Calculate the carrying value of the bonds at the end of the fifth year
Acceleration of the insect during the time of the jump : What is the acceleration of the insect during the time of the jump (before it leaves the ground)?
What is the rate of growth of their dividend which grows : The company just paid their dividend of $1.20. What is the rate of growth of their dividend which grows at a constant rate?
Magnitude and direction of the puck acceleration : If these are the only two forces acting on the puck, what will be the magnitude and direction of the puck's acceleration?
Why the interest rate is not even a factor in the decision : Determine the two interest rates and the choose one or explain why the interest rate isn't even a factor in the decision.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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