Reference no: EM131772106
When bonds are issued at other than par value, a discount or premium is recorded. This discount or premium is amortized over the life of the bond. However, a callable bond may be retired before the maturity date, which leaves a loss or gain to be recognized. Read the FASB Looks to Amend Income Recognition Rules Related to Callable Bonds article. The third paragraph of this article discusses that all premiums on callable debt securities should be amortized to the earliest call date and all discounts on callable debt securities should be amortized to the maturity date. ·
(A) What effect will this have on interest expense if the bonds are issued at a premium and a discount?
(B) If you issue $10,000,000, 30 year callable bonds at a 5% premium, with a call feature at 10 years, what effect will this have on interest expense the first ten years? Provide journal entries and a comparative table to explain the differences.
(C) If you issue $10,000,000, 30 year callable bonds at a 5% discount, with a call feature at 10 years, what effect will this have on interest expense the first ten years? Provide journal entries and a comparative table to explain the differences.
|
Prepare entry to record the purchase of terrell galleries
: Fred Graf, owner of Graf Interiors, is negotiating for the purchase of Terrell Galleries. Prepare the entry to record the purchase of Terrell Galleries
|
|
Regulate things that people need to live
: Do you think the government should be able to regulate things that people need to live? I have read that some medications are priced so high
|
|
What might be the better measure for central tendency
: What might be the better measure for central tendency? What sort of research question would this variable help answer that might inform social change?
|
|
Draw small numbers of viewers for repeat shows long dash
: The Young and the Restless?, which have had shrinking audiences for? years, draw small numbers of viewers for repeat shows long dash
|
|
Discuss what effect will this have on interest expense
: What effect will this have on interest expense if the bonds are issued at a premium and a discount
|
|
Discuss the proper accounting treatment for this cost
: These costs enhance the design of the product considerably. Discuss the proper accounting treatment for this cost
|
|
Describe the type of resources that logistics was required
: Describe the type of resources that Logistics was required to supply, and then report on the methods likely used to track expenses by the Finance Section.
|
|
Probability of boldface numbers in the given quotes
: Using the terminology of this chapter, what name (for example, odds, risk, relative risk) applies to each of the boldface numbers in the following quotes?
|
|
Discuss income tax withheld amounts
: At this point in the year, some employees have already received wages in excess of those to which payroll taxes apply
|