Prepare an amortization table for the bond

Assignment Help Finance Basics

Reference no: EM131820230

Question: Determining the present value of bonds payable and journalizing using the effective-interest amortization method Spa, Inc. is authorized to issue 11%, 10-year bonds payable. On January 1, 2016, when the market interest rate is 12%, the company issues $600,000 of the bonds. The bonds pay interest semiannually.

Requirements: 1. How much cash did the company receive upon issuance of the bonds payable? (Round all numbers to the nearest whole dollar.)

2. Prepare an amortization table for the bond using the effective-interest method, through the first two interest payments. (Round all numbers to the nearest whole dollar.)

3. Journalize the issuance of the bonds on January 1, 2016, and payment of the first semiannual interest amount and amortization of the bond on June 30, 2016. Explanations are not required.

Reference no: EM131820230

Questions Cloud

Discuss the accounts debt investments and stock investments : Journalize the transactions and post to the accounts Debt Investments and Stock Investments

Fbi says fewer than 25 failed polygraph test : The article "FBI Says Fewer than 25 Failed Polygraph Test" (San Luis Obispo Tribune, July 29, 2001) states that false-positives in polygraph

Determine berthas games operating income for the year : Compute the cost of the asset. Based solely on the above information, determine Bertha's Games operating income for the year.

Discuss about the cognitive development : Cognitive development (during your observation did you learn about the child's Cognitive ability provide example)

Prepare an amortization table for the bond : Prepare an amortization table for the bond using the effective-interest method, through the first two interest payments.

How to conduct a swot analysis : If you are unfamiliar with how to conduct a SWOT analysis, here are some excellent resources to assist you.

Water column interactions for hydrophobic pollutants : The article "Modeling Sediment and Water Column Interactions for Hydrophobic Pollutants" (Water Research [1984]: 1169-1174)

What is the correlation between the returns of the two stock : What is the correlation between the returns of the two stocks? What is the covariance between the returns of the two stocks?

Analyze the major pros and cons of preparing company budgets : Analyze the major pros and cons of preparing company budgets. Analyze the most common responsibility reporting systems.

User Account

All Pages