User Account

All Pages

Determine the bonds issue price on January

Assignment Help Accounting Basics
Reference no: EM132634226

Question - Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $26,000 par value and an annual contract rate of 12%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.)

Required - Consider each of the following three separate situations.

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

(a) Complete the below table to determine the bonds' issue price on January 1, 2017.

(b) Prepare the journal entry to record their issuance.

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

(a) Complete the below table to determine the bonds' issue price on January 1, 2017.

(b) Prepare the journal entry to record their issuance.

3. The market rate at the date of issuance is 14%.

(a) Complete the below table to determine the bonds' issue price on January 1, 2017.

(b) Prepare the journal entry to record their issuance.

Reference no: EM132634226

Questions Cloud

Risk and costs of compromised data integrity breaches : Discuss the risk and costs of compromised data integrity breaches. Focus on integrity not confidentiality.
Find the relevant consolidation adjusting entries : The accounting policy of P Ltd, S Ltd, and the group was to account for land at cost. Find the relevant consolidation adjusting entries for 20x8
Explain why the human resource function should be aligned : Explain why the human resource function should be aligned with an organization's strategic plan (use ideas from the Module One discussion on this topic).
What is the appropriate transfer price for the decision : What is the appropriate transfer price for the decision? What effect would this have on the minimum price set by the marketing manager?
Determine the bonds issue price on January : The market rate at the date of issuance is 12%. Complete the below table to determine the bonds' issue price on January 1, 2017
Administrative controls-policies approved by management : Administrative controls: Policies approved by management and passed down to staff, such as policies on password length.
Find and make contribution format income statement : Next year the company manufactures and sells 30,000 balls (the same number as sold last year). Make contribution format income statement.
Describe characteristics of adult learners : Describe any four characteristics of adult learners and discuss how HR trends in corporate learning are responding to learners needs.
Describe the components of a needs assessment : Describe the components of a needs assessment used to determine the training requirements of a Customer Service - CARE Business Partner at Maersk.

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