Questionon march 1 2008 jackie chan company sold its 5 year

Reference no: EM13348786

Question:

On March 1, 2008, Jackie Chan Company sold its 5 year, $1,000 face value, 9 percent bonds dated March 1, 2008, at an effective interest rate yield of 11%. Interest is payable semi-annually, and the first interest payment date is September 1, 2008. Chan uses the efficient interest method of amortization. Bond issue costs were incurred in preparing and selling the bond issue. The bonds will be called by Chan at 101 at any time on or after March 1, 2009.

Instructions:

1) How could the selling price of the bonds be determined"

2) Identify how all items related to the bonds would be presented in a balance sheet prepared instantly after the bond issue was sold.

B. what items related to the bond issue would be included in Chan's 2008 income statement, and how could each be determined?

C. Would the amount of bond discount amortization using the efficient interest method of amortization be lower in the second or third year of the life of the bond issue? Why?

D. Consider that the bonds were called in and retired on March 1, 2009, how should Chan report the retirement of the bonds on the 2009 income statement?

Reference no: EM13348786

Questions Cloud

Question house station inc is a countrywide hardware and : question house station inc. is a countrywide hardware and furnishings chain. the manager of the house station store in

Question 1a give an analytical derivation of the capital : question 1a give an analytical derivation of the capital asset pricing model capm and supplement your analysis with

Questionbell inc manufactures acc222 an over the counter : questionbell inc. manufactures acc222 an over the counter medication that actives all accounting students to earn no

Questionthe recruitment department of a main company has 13 : questionthe recruitment department of a main company has 13 staff including a manager 7 recruiters and 5

Questionon march 1 2008 jackie chan company sold its 5 year : questionon march 1 2008 jackie chan company sold its 5 year 1000 face value 9 percent bonds dated march 1 2008 at an

Question the subsequent terms relate to independent bond : question the subsequent terms relate to independent bond issuesa.610 bonds 1000 face value 8 stated rate 5 years annual

Question 1 a the financial services commission fsc was set : question 1 a the financial services commission fsc was set up by act of parliament under the financial services

Question on 1 of january 2013 abc company announced stock : question on 1 of january 2013 abc company announced stock options for the cfo at the price of 25 a share - 1000 shares.

Question instructions you have been asked to comment on the : question instructions you have been asked to comment on the accounting treatment for various independent transactions

User Account

All Pages