User Account

All Pages

Prepare the entry to record issuance of the bonds

Assignment Help Corporate Finance
Reference no: EM13197764

Norman Co., a fast-growing golf equipment company, uses U.S. GAAP. It is considering the issuance of convertible bonds. The bonds mature in 10 years, have a face value of $400,000, and pay interest annually at a rate of 4%. The estimated fair value of the equity portion of the bond issue is $35,000. Greg Shark is curious as to the difference in accounting for these bonds if the company were to use iGAAP.

(a) Prepare the entry to record issuance of the bonds at par under U.S. GAAP.

(b) Repeat the requirement for part (a), assuming application of iGAAP to the bond issuance.

(c) Which approach provides the better accounting? Explain.

Reference no: EM13197764

Questions Cloud

State appraisal and failure costs : Explain how prevention, appraisal and failure costs would relate to the current situation with The Ohio State University's football program.
Prepare the journal entryies for the first year : Prepare the journal entryies for the first year of the stock-option plan and prepare the journal entry(ies) for the first year of the plan assuming that, rather than options,
Give the linear specification to estimate the demand : Wilpen Company, a price-setting firm, produces nearly 80 percent of all tennis balls purchased in the United States.
State ways you have recognized cues from body : ways you have recognized cues from your body that indicate diminished focus or energy when you are working on a project, reading, or studying. How did you sense it?
Prepare the entry to record issuance of the bonds : Prepare the entry to record issuance of the bonds at par under U.S. GAAP and repeat the requirement for part (a), assuming application of iGAAP to the bond issuance.
Find the actual ground speed and direction of the plane : An airplane is flying on a compass heading of 340 degrees at 325 mph. A wind is blowing with the bearing 320 degrees at 40 mph. Find the component form of the velocity of the airplane and find the actual ground speed and direction of the plane.
State rescuing lost dogs and cats in joplin : Research shows that American's give generously to disaster areas as long as the story is still in the media. However, once the media coverage dies down within 24 hours we stop giving and move on to the next story
What is the expected number of ball tosses : Suppose that we toss balls into b bins until some bin contains two balls. Each toss is independent, and each ball is equally likely to end up in any bin. What is the expected number of ball tosses?
Find the dimensions of the biggest enlargement : A postcard is 6 in. by 4 in. A printing shop will enlarge it so that the longer side is any length up to 3 ft. Find the dimensions of the biggest enlargement.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Typical open end fixed income

Would you expect a typical open-end fixed income mutual fund to have higher or lower operating expenses than a fixed-income unit investment trust? Explain your answer.

  Find the price to maximize profits

Suppose the local space museum has employed you to assist them in setting admission values. The museum's managers recognize that there are 2 distinct demand curves for admission and find the price they should charge to each group to maximize profits.

  Determine cost of internal equity capital

The common stock for Grapevine Plumbing Corporation currently sells for 40 dollar per share. If a new issue is sold, flotation cost is estimated to be 7 dollar per share. Determine the cost of internal equity capital & external equity capital.

  Changes in the number of procedures per day

What type of risk was measured and accounted for in Parts b and c? Should this be of concern to the hospital's managers - Perform a sensitivity analysis to see how NPV is affected by changes in the number of procedures per day,

  Record the conversion of the preferred stock

Pechstein company issued 2000 shares of $10/value common stock upon conversion of 1000 shares of dollar 50 par value preferred stock. The preferred stock was issued at $60 per share.

  Calculate market risk premium and shareholder expect

A share holder has a stock portfolio. Every stock in the portfolio has following market values and betas. So determine the Shareholder expect from this portfolio .

  Calculate average rate of return for the stock

Spill Oil firm's stocks had -8 percent, 11 percent and 24 percent rates of return during the last 3-years respectively; find the average rate of return for the stock.

  Highest to lowest returns and risk

Which of the following lists correctly ranks investments from highest to lowest returns and risk (thus, the highest risk security should be shown first, the lowest risk securities shown last)?

  Corporate finance problems

Corporate finance problems, 1.  Marginal analysis and economic value added (EVA),  Calculation of EPS and retained earnings,  Financial statement preparation,  Understanding financial statements

  Construct a price weighted index

Three (3) stocks have share values of $12, $75, and $30 with total market rates of $400 million, $350 million & $150 million respectively.

  Estimation of maximize profit

Abotte Products manufactures three items, A, B, and C. The corporation can sell up to 300 pounds of each product at the following prices; estimate how Abotte can maximize its profit.

  Make a report for nyse-euronext and the nasdaq

You have been asked to make a report for a group of stock brokers about NYSE-Euronext and the NASDAQ.

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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