User Account

All Pages

Calculate the total bond interest expense for the year

Assignment Help Accounting Basics
Reference no: EM131695532

Question - On January 1, 2010, a company issued 10-year, 10% bonds payable with a par value of $500,000 and received $442,647 in cash proceeds. The market rate of interest at the date of issuance was 12%. The bonds pay interest semiannually on June 30 and December 31. The issuer uses the straight-line method for amortization.

a) Prepare the journal entry to issue the bond on January 1, 2010.

b) Prepare the journal entries to record the first two semiannual interest payments on June 30, 2010 and December 31, 2010.

c) Calculate the total bond interest expense for the year ended December 31, 2010.

d) Calculate the bond carrying value as of December 31, 2010.

Reference no: EM131695532

Questions Cloud

Flexible budget for various levels of activity : Prepare an overhead budget for the expected level of direct labor hours for the coming year.
Personal goals by opting for flexible work arrangement : You are a car mechanic. You want to balance professional and personal goals by opting for a flexible work arrangement. For you, _____ is a not a viable option.
Determine the issue price : At the time of issuing the securities, the market requires a rate of return of 12 per cent. Determine the issue price
Define an academic plan and goals in majoring in business : Define an academic plan and goals in majoring in business.
Calculate the total bond interest expense for the year : On January 1, 2010, a company issued 10-year, Calculate the total bond interest expense for the year ended December 31, 2010
Identifying development trends in the mitigation plan : From the answer choices, select the statement that is FALSE about approaches used for identifying development trends in the mitigation plan.
Demonstrate the concept of flow in the organization : Describe the value-added activities that are associated with this organization in terms of. demonstrate the concept of flow in the organization:
Determine how you will evaluate your progress : Determine how you will evaluate your progress, e.g., salary or raises or publications. Define the decision to be made, e.g., where to work after graduation.
Safety regulations require that time in airplane takeoffs : Safety regulations require that the time between airplane takeoffs (on the same runway) will be at least 2 minutes.

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