What should you account for at 31 december 2004

Assignment Help Financial Management

Reference no: EM131340902

Suppose that on 1 October 2004 Viaggimmagine SpA, an Italian tour operator, issued bonds for EUR 1 million, at an interest rate of 5 per cent per annum, with semiannual interest payments, to be redeemed on 30 September 2015.

(a) Using the accounting equation, prepare a summary of the issuance of the bonds assuming that they were issued at:
• par value
• a discount of EUR 10,000
• a premium of EUR 50,000.

(b) Using the accounting equation, summarise the issuance of the first two semiannual interest payments.

(d) How do you account for the redemption at 30 September 2015?

Reference no: EM131340902

Questions Cloud

Write breadth first search to traverse a directed graph : Write a program that searches the directory C:\Windows\ and all its subdirectories recursively and prints all the files which have extension *.exe.

Expect triple-net market rents : What expected cash flow (NOI) forecast should you put in year 2010 of your pro-forma for this space, if you expect triple-net market rents on new leases in 2010 to be $21.67/SF?

Tenant owe the landlord in expense reimbursements : A tenant has a gross lease with an ‘‘expense stop''of $2.75/SF. If the building has 200,000 square feet of leasable space, reimbursable operating expenses of $700,000, and the tenant rents 25,000 SF, then how much does the tenant owe the landlord ..

Write a well-researched paper exploring green transportation : Select only "ONE" of these topics and write a well-researched paper exploring Green transportation. Papers should cover a brief history, the crux of the issue, the current state of affairs, and near-term future developments.

What should you account for at 31 december 2004 : Using the accounting equation, summarise the issuance of the first two semiannual interest payments.- What should you account for at 31 December 2004? Why?

How do you define the concept of attention : Respond to the following questions in 100 to 150 words each. How do you define the concept of attention? Can attention be consciously allocated to tasks? Why or why not

What is the after-tax cash flow from the sale : Consider the following values. NOIn+1: $2.8 million. Cap rate: 7.5%. Brokerage commission: 3%. Remaining mortgage balance: $12 million. Remaining book value: $14 million. Total depreciation taken: $4.9 million. Recapture tax (for depreciation take..

Why is football the most popular sport in america : WHY IS FOOTBALL THE MOST POPULAR SPORT IN AMERICA? - Presentation will be evaluated on content

Implement the structure circular queue with array : Implement the necessary methods for adding, removing the element in succession and retrieving without removing the element in succession. If an operation is invalid, throw an appropriate exception.

User Account

All Pages