Reference no: EM131731415
Question - To raise money for a capital improvement to its national headquarters, JMO Inc. issued $2,000,000 in bonds on January 1, 2017. Assume the following :
Amount of bonds issued $2,000,000
face of bond $1,000
Maturity date 20 years
contract rate of interest 5%
interest payment is semi annual.
Calculate:
(a) how many bonds were issued?
(b) Prepare the journal entry to record the issuance of the bonds on January 1, 2017 assuming the bonds were issued at face.
(c) Prepare the journal entry to record the issuance of the bonds on January 1, 2017 assuming the bonds were issued at 98.
(d) Prepare the journal entry to record the issuance of the bonds on January 1, 2017 assuming the bonds were issued at 104
(e) Explain different approaches to amortizing bond discount and premium.
(f) Identify the amortization method preferred by FASB and explain why it's preferred
(g) Assume 5 years have passed since the bonds were originally issued and they are now trading in the secondary market. How much would a seller be willing to sell for and a buyer be willing to pay for the bonds originally issued assuming the following:
Face amount of bonds sold:
|
$100,000
|
Market rate of interest on investments of similar risk:
|
4%
|
(f) Describe the relationship between the contract and market rate of interest with respect to how a differential between market and contract rates affects the selling price of bonds.
How does this topic impact the individuals environment
: How does this topic impact the individual's environment? How does this topic impact the individual's family ?
|
What is the blues payout ratio
: This information pertains to Blue Company. Lets assume that all balance sheet amounts represent average balance figures. What is the Blues payout ratio
|
Compute the probability of hitting the bull-eye
: A player throws darts at a target. On each trial, independently of the other trials, he hits the bull's-eye with probability .05.
|
Find the probabilities in the second and third generations
: Suppose that the probabilities of the genotypes AA, Aa, and aa are p, 2q, and r, respectively, in the first generation.
|
Prepare the journal entry to record the issuance of bonds
: Prepare the journal entry to record the issuance of the bonds on January 1, 2017 assuming the bonds were issued at 104
|
Probability that the father is carrier in light of evidence
: Suppose that the first offspring of part (c) is not diseased. What is the probability that the father is a carrier in light of this evidence?
|
Discuss component and how the compowners interact
: Discuss the mechanisms of action for each component and how the compowners interact
|
Evaluate the consistency of the treatment of the option
: Evaluate the consistency of the treatment of the option to extend the lease with the definition and recognition criteria of a liability
|
Define indications pharmacokinetics agents
: Develop flash cards that summarize the therapeutic actions,indications,pharmacokinetics agents,and important drug-drug interactions
|