Congo express airways

Assignment Help Financial Accounting
Reference no: EM132203875

On January 1 of Year 1, Congo Express Airways issued $3,500,000 of 7% bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $3,197,389 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized at a rate of $10,087 every six months.

The amount of interest expense recognized by Congo Express Airways on the bond issue in Year 1 would be?

Reference no: EM132203875

Questions Cloud

What are jeffery monthly loan payments : What are Jeffery's monthly loan payments for this loan after he graduates in 4 years? (Round your answer to the nearest cent.)
Calculate the npv and irr of a company : Calculate the NPV and IRR of a company with a project estimate of $80,000, depreciation of $3,333.33 over 12 years, annual EBIT of $40,000, and marginal tax
Discuss-products and services : What factors will give you competitive advantages or disadvantages? What are the fees, price points, or leasing structures of your products or services?
Bonds were issued at a premium : If a business issues a $100,000 face value, 5 year, 10% contract rate bonds dated January 1st and Interest is payable semiannually each December 31.
Congo express airways : The amount of interest expense recognized by Congo Express Airways on the bond issue in Year 1 would be?
How would you define auto zone industry : How would you define Auto Zone's industry? Would you include new car dealerships and/or discount stores in the industry? Why or why not?
Return on the investment : How much needs to be invested today if your goal is to have $100,000 4 years from today? The return on the investment
What machine is most profitable : Machine 1,3 year life - $350,000 operating costs of $75,000 a year
What is the domain of function : His weekly earnings can be modeled by the function f(x) = 50x + 350. Graph the function. What is the domain of function?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What price could you expect the stock to trade

At what price could you expect the stock to trade instantaneously after the split goes into effect

  Differences between financial and managerial accounting

What are some main differences between financial and managerial accounting? How do these differences affect the type of information that must be gathered and reported? What different types of decisions must users of financial accounting information m..

  Differences between managerial accounting and financial acc

Explain the differences between managerial accounting and financial accounting.

  Depreciation calculation methods-partial year

Depreciation calculation methods - partial year. High Co. purchased a new machine on July 2, 2013, at a total installed cost of $44,000. The machine has an estimated life of five years and an estimated salvage value of $6,000. Calculate the accumulat..

  Conversion-personal use to business use

Alice starts a taxi service and decides to use her personal car as the first taxi in her new business. the car will be used solely for business purposes. The car had an original cost of $20,000 and fair market value at the date of conversion to busin..

  Journalize the issuance of the stock

On May 10, Paige Corporation issues 2,500 shares of $5 par value common stock for cash at $13 per share.Journalize the issuance of the stock.

  Prepare the selling and administrative expense budget

The selling and administrative expense budget of Fenley Corporation is based on the number of units sold, which are budgeted to be 2,500 units in January. The variable selling and administrative expense is $4.40 per unit. Prepare the selling and admi..

  Question 1 show all calculations to support your answers

question 1 show all calculations to support your answers. round all probability calculations to 2 decimal places.a

  Premium amortization

Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. I just need to know where to DR or CR the Interest expense and how much a..

  Cost of materials transferred into the rolling department

The cost of materials transferred into the Rolling Department of Atlas Steel Company is $4,600,000 from the Casting Department. The conversion cost for the period in the Rolling Department is $1,100,000 ($600,000 factory overhead applied and $500,000..

  The economy-wide impacts of your chosen tax rate

Assume that you are a full-time worker earning $10 per hour, $80 per day, $400 per week, $20,000 per year. Would you quit their job if the tax rate was 20%? What about 30%? 50%? What do you think is the best tax rate? What are the economy-wide impact..

  Purchased inventory on account

Purchased inventory on account and Sold inventory below its cost at a loss

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!

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