User Account

All Pages

What is the journal entry that abc inc would record

Assignment Help Accounting Basics
Reference no: EM133014487

Problem - On January 1, 2012 ABC, Inc. issued 20,000 10-year bonds (par value of $1,000 each), with an 8% coupon rate, and interest paid semiannually (twice a year). The first payment is scheduled to occur on June 30th. At the time of the bond issuance, the market rate for a similar debt security was currently yielding 6%. ABC, Inc. becomes more credit worthy over the first 2 years after the initial bond issuance, and the market is now (1/1/2014) demanding an interest rate of only 4%. What is the journal entry that ABC, Inc. would record on 1/1/2012?

Reference no: EM133014487

Questions Cloud

Calculate the variable overhead spending variances : The following information is available for Marigold's Hot Dogs: Actual production 11,760 packages. Calculate the variable overhead spending variances
Determine the improvements law enforcement : Determine the improvements both law enforcement and intelligence agencies should implement to strengthen the security of the United States.
Most risk of needing an emergency loan : Looking forward to next year, if Baldwin's current cash balance is $33,018,860 and Cash Flows From Operations next period are unchanged from this period, which
Estimate the terminal value : If the cost of capital for the firm is expected to be 10% in perpetuity, estimate the terminal value (at t=5) for the firm
What is the journal entry that abc inc would record : The market is now (1/1/2014) demanding an interest rate of only 4%. What is the journal entry that ABC, Inc. would record on 1/1/2012
Calculate how much the preferred and common shareholders : alculate how much the preferred and common shareholders will receive under each of the following assumptions: The preferred is cumulative and non-participating
Determine the interest rate implicit in the lease : Lease payments: $5000 at lease inception, $5500 on 30 June each year (that is, 10 payments). Determine the interest rate implicit in the lease
Prepare any recording tools and equipment required : Prepare any recording tools and equipment required to receive and check incoming stock?
What are the tools or equipment need : What are the tools or equipment need to be prepared while receiving and checking incoming stock or deliveries?

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