User Account

All Pages

Compute for the initial carrying amount of the bonds

Assignment Help Accounting Basics
Reference no: EM132732206

Question - On January 1, 2011, an entity issues bonds with face amount of P8,000,00 for P8,600,000. The bonds mature on December 31, 2014 and pay annual interest of 11%, The effective interest rate is 9%. The entity incurs transactions cost of P81,645.

Required -

a. Compute for the initial carrying amount of the bonds.

b. Compute for net discount or premium from the initial recognition

c. Are the periodic interest payments greater than or less than the periodic interest expenses?

d. Journal entries during the term of the bonds.

Reference no: EM132732206

Questions Cloud

Prepare journal entry necessary as a direct result of error : The industrial robots have 10-year useful lives and no material salvage value. Prepare journal entry necessary as a direct result of error
What is sampling bias : What is sampling bias? Why do you think it's important in data collection? What are problems caused by sampling bias and how can it be avoided?
What is the break-even point in dollars : A company has fixed costs of $30,000 making a product that sells for $40 and has a variable cost of $16. What is the break-even point in dollars
Discuss gender inequality : Discuss gender inequality as it is today using examples and social concepts to verify the position you take on gender inequality.
Compute for the initial carrying amount of the bonds : The effective interest rate is 9%. The entity incurs transactions cost of P81,645. Compute for the initial carrying amount of the bonds
Multi hospital system that is growing at rapid pace : You are the president of a multi hospital system that is growing at a rapid pace.
Prepare the journal entries to summarize the history : Prepare the journal entries to summarize the history of the building as it would be reported in the city's government-wide statements
Process of analyzing health policy involves explaining : The process of analyzing health policy involves explaining the primary relationship between different institutions, interest areas and concepts
Prepare a cost of goods sold section for the year ending : The ending inventory is $20,000. Prepare a cost of goods sold section for the year ending August 31, 2022 (periodic inventory)

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