User Account

All Pages

Calculate the price paid by ABC Corp for the bonds

Assignment Help Accounting Basics
Reference no: EM132574199

Question - On January 01, 2019, ABC Corp. Purchased XYZ Company bonds when the market interest rate was 8%. The XYZ bonds had a $500,000 maturity value, paid 6% interest semi-annually on June 30th and December 31st, and had a five year life. ABC Corp.'s year-end is at December 31.

ABC Corp uses IFRS for reporting purposes, therefore, will be using Effective-Interest Method.

Required -

a) Calculate the price paid by ABC Corp. for the bonds.

b) Prepare the journal entry to record the purchase of the bonds.

c) Complete the table below that shows the interest revenue, carrying value of bonds, using the effective interest rate method.

Reference no: EM132574199

Questions Cloud

Analyze the previous journal entries : Analyze the previous journal entries and discuss the differences and similarities among the entries. Consider the type of writing entry
Canadian government handled the coronavirus pandemic well : Canadian government handled the coronavirus pandemic well and Explain the relevance of the quotations/paraphrases in your paragraphs and how they support
Describe the biosafety level classification system : Describe the biosafety level classification system in the U.S. and the biohazard risk classification used by the WHO.
Evaluate the importance of water to all life on earth : Evaluate the importance of water to all life on Earth. Analyze the properties of water that make it unique. Explore the relationship between water and pH.
Calculate the price paid by ABC Corp for the bonds : ABC Corp. Purchased XYZ Company bonds when the market interest rate was 8%. Calculate the price paid by ABC Corp for the bonds
Describe pharmacokinetics and pharmacodynamics of the drug : Describe pharmacokinetics and pharmacodynamics of the drug related to the pathophysiology of the disease process. Describe the product, its intended use.
What is assistive technology : What is assistive technology? What does it mean for individuals with disabilities? How about for individuals who are typically developing?
Calculate the multifactor productivity for this operation : A company offers ID theft protection using leads obtained from client banks. Calculate the multifactor productivity for this operation in fees generated
Frequency distributions and graphs all variables : Frequency distributions and graphs all variables - At least two graphs should be done for each type of data namely

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