What is the compound journal entry to record the interest

Assignment Help Financial Accounting
Reference no: EM132890386

Question - On Jan. 1, 2021, ABC paid $3,050,000 for a serial bond that has a face value of $3,000,000, term of 5 years, and nominal rate of 9%. ABC made the investment to collect the contractual cash flows which are to be received every Dec. 31, 2021. ABC additionally paid the broker a fee of $25,550. The resulting effective interest rate from the acquisition is 8%. What is the compound journal entry to record the interest collected and principal amount collected as well as the interest earned on Dec. 31, 2021? Also, provide the correct balance of the investment after collecting the cashflows on that same day.

Reference no: EM132890386

Questions Cloud

System to record availability of mini-buses : Different databases such as one for payment details and vehicle specifications and availability to produce different outputs and results
How much does this relationship drive change : Discuss the relationship between organizational change and the organization's need to stay competitive in a global market.
Explain the initial measurement of receivables : Explain the initial measurement of receivables. Define receivables & explain its the classification in the statement of financial position
Provide amarican airlines with a competitive advantage : In what ways did SABRE provide Amarican Airlines with a competitive advantage?
What is the compound journal entry to record the interest : What is the compound journal entry to record the interest collected and principal amount collected as well as the interest earned on Dec. 31, 2021
What amount should be recorded in Jose capital account : The computer was sold for P55,000 on May 1, 2011 immediately after the formation of the partnership. What amount should be recorded
Interested in marketing sustainable products : Are companies genuinely interested in marketing sustainable products or is this just a marketing strategy that is popular today? Do you think "green fatigue"
Mini-bus hire system project : Mini-bus hire system Project - Description of the database and what it must include: System to record availability of Mini-buses, capacity and hire cost per day
Is Company A an accelerated filer on December : The closing market price of its common stock on the NY Stock Exchange on June 30, 2020 was $52. Is Company A an accelerated filer on December 31, 2020

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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!

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