User Account

All Pages

Record the journal entries for the first interest payment

Assignment Help Accounting Basics
Reference no: EM131572265

Problem - On June 1, 2017 Alpha Company sells $1,400,000 face value of 9% five-year bond which call for semiannual interest payments. The bonds are dated April 1, 2017 so these bonds are issued between interest dates. The market rate at the date of issue of 9%. For simplicity, use a 360-day year and 30 day months for all calculations.

1. Record the journal entries for the issuance of the bonds.

2. Record the journal entries for the first interest payment due on October 1, 2017. Assume that interest has not been accrued at each month end.

Reference no: EM131572265

Questions Cloud

Discussion-understanding financial statements : In this assignment, you will learn to read and interpret financial statements. Understanding the four financial statements provided.
Complete the following chart under the independent situation : Ramon received a gift of stock from his uncle. Complete the following chart under the independent situations shown
What preventative measures can be taken : What physical and psychological factors play a role in succumbing to these threats? What preventative measures can be taken?
Explain the most effective safe guards that you believe : Explain the most effective safe guards that you believe an organization can put into place to prevent unethical behavior within the organization.
Record the journal entries for the first interest payment : Record the journal entries for the first interest payment due on October 1, 2017. Assume that interest has not been accrued at each month end
Obtain lower bound on probability using chebyshev inequality : Suppose that the number of cans of soda pop filled in a day at a bottling plant is a random variable with an expected value of 10,000 and a variance of 1000.
Identify the importance of the market for loanable funds : Identify the importance of the market for loanable funds and the market for foreign-currency exchange to the achievement of the strategic plan.
Find the annual yield to maturity : They mature in 10 years, have a par value of $1,100, monthly coupon payments, and an annual coupon rate of 9%. Find the annual yield to maturity.
What types of resources would you use in helping a child : Research and post a minimum of three websites or other resources that might be beneficial in helping a child or adolescent deal with death.

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