User Account

All Pages

Prepare the journal entry to record the bond purchase

Assignment Help Accounting Basics
Reference no: EM131874241

Question - On January 1, Rare Bird ltd. purchased 12% bonds dated January 1, with a face amount of $20 million. The bonds mature in 2022 (10 years). For bonds similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31.

Required -

1) Determine the price of the bonds at January 1.

2) Prepare the journal entry to record the bond purchase by Rare Bird on January 1.

3) Prepare the journal entry to record interest on June 30, using the effective interest method.

4) Prepare the journal entry to record interest on December 31, using the effective interest method.

Reference no: EM131874241

Questions Cloud

Prepare all journal entries appropriate to be recorded : In November sold $4,000 of gift cards. $700 of these were redeemed. Prepare all journal entries appropriate to be recorded these transactions
What the articles you have selected say about the theme : Select five articles that interest you the most and read them thoroughly. (You will most likely need to retrieve the articles from EBSCO host.)
Weibull random variable : Suppose the time (in hours) until a machine needs realignment for a manufacturing system to function properly is a Weibull random variable
Firm value and stock price be after the stock split : Absent of externalities, what would the number of shares outstanding, firm value and stock price be after the stock split?
Prepare the journal entry to record the bond purchase : On January 1, Rare Bird ltd. purchased 12% bonds dated January 1, with a face amount of $20 million. Prepare the journal entry to record the bond purchase
Why the majority of paid domestic workers in los angeles : Explain why the majority of paid domestic workers in Los Angeles today come from Central America. Why might they be women as opposed to men labor migrants?
What did mr selfridge contribute retailing strategies : First read "Retail Lessons for Today, Learned from PBS' Mr. Selfridge". If the link does not work, you may search for the article using the following.
Summarize the salient points of the supreme court case : Religion and Politics have traditionally been highly debated topics in our society. Recently, the Pledge of Allegiance has added to this debate.
Find the discount : A man makes a simple discount note with a face value of ?$2,500?, a term of 140 ?days, and a 9?% discount rate. Find the discount.? (Use the?banker's rule.)

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