Cactus construction sells 1000000 of 8 bonds on january 1

Assignment Help Accounting Basics

Reference no: EM13589872

Cactus Construction sells $1,000,000 of 8% bonds on January 1, 20XX. The bonds are unsecured but registered to the name of the purchaser. The bonds are due in 5 years, with interest payable annually at year-end.

1.Determine the value of the bonds if the market interest rate is 9%. Show the effect on the accounting equation (by account title) AND the journal entries at the date of issuance and at year-end.

2.Determine the value of the bonds if the market interest rate is 7%. Show the effect on the accounting equation (by account title) AND the journal entries at the date of issuance and at year-end.

Reference no: EM13589872

Questions Cloud

Mainline produce corporation acquired all the outstanding : mainline produce corporation acquired all the outstanding common stock of iceberg lettuce corporation for 40000000 in

An experiment shows that a 250 ml gas sample has a mass of : question an experiment shows that a 250 ml gas sample has a mass of 0.430 g at a pressure of 728 mmhg and a temperature

At an activity level of 9200 machine-hours in a month : at an activity level of 9200 machine-hours in a month nooner corporations total variable production engineering cost is

What is an example of a gain contingency what is the : what is an example of a gain contingency? what is the accounting treatment for gain contingencies? please discuss the

Cactus construction sells 1000000 of 8 bonds on january 1 : cactus construction sells 1000000 of 8 bonds on january 1 20xx. the bonds are unsecured but registered to the name of

Our company purchased equipment for 36000 on january 1 2013 : 1.interest is eligible to be capitalized as part of an assets cost rather than being expensed immediatelya on

Journalize the entry to record the first semi- annual : on january 1 2011 a company issued 1000000 of 5 year 12 bonds at an effective interest rate of 13 receiving cash of

If 269 ml of base are required to neutralize 205 ml of the : an aqueous solution of hydroiodic acid is standardized by titration with a 0.275 m solution of potassium hydroxide.if

For each plan determine the division of the net income : dylan howell and demond nickles have decided to form a partnership. they have agreed that howell is to invest 50000 and

User Account

All Pages