Determine the bonds issue price on january

Assignment Help Accounting Basics
Reference no: EM131766654

Question - Hartford Research issues bonds dated January 1, 2013, that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years.

Required -

For each of the following three separate situations, (a) determine the bonds' issue price on January 1, 2013 and (b) prepare the journal entry to record their issuance.

1. The market rate at the date of issuance is 8%

2. The market rate at the date of issuance is 10%

3. The market rate at the date of issuance is 12%

Reference no: EM131766654

Questions Cloud

Calculate the company inventory turnover ratio : Blanchard, Inc. provided the following for 2017: Calculate the company's inventory turnover ratio for the year
How new roles being adopted by emergency manager can be used : Discuss how the new roles being adopted by emergency managers can be used to encourage sustainable recovery. Provide specific examples.
How many total units should be budgeted for production : They desire to have 180 units on hand at the end of February. How many total units should be budgeted for production in January and February
Recycling picks up recyclables from homeowners : WasteNot Recycling WasteNot Recycling picks up recyclables from homeowners in Boulder, Colorado. Neighborhoods subscribe to the service
Determine the bonds issue price on january : For each of the following three separate situations, determine the bonds issue price on January 1, 2013 & prepare the journal entry to record their issuance
What is melody net income for may : Melody's Piano School operations for the month of May, What is Melody's Net Income for May using the cash basis of accounting
Create a solid communication plan for your change initiative : Create a solid communication plan for your change initiative. Ascertain how each of the steps applies to your specific organization.
What circumstances do you think formal interviews : Under what circumstances do you think formal interviews can be useful?
What is the optimal size of the production run : Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. What is the optimal size of the production run?

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.

  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!

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