User Account

All Pages

Calculate the amortization on the bond premium

Assignment Help Accounting Basics
Reference no: EM132541254

Question - Ralston Corp. recently issued $1,000,000 of 6% 10-year bonds, yielding a market (yield) rate of 8%. The bonds pay interest semiannually on June 30 and December 31.

a. Calculate the bond issue price and prepare the journal entry to record the issuance (present value tables are included in the 2nd and 3rd tabs of this worksheet)

b. Calculate the amortization on the bond premium or discount using the effective interest method for the first interest payment, and prepare the journal entry for the first semiannual interest payment and amortization.

Reference no: EM132541254

Questions Cloud

What is the length of the day sales in inventory : What is the length of the day's sales in inventory? (Use 365 days a year. Use ending inventory rather than averaging inventory.)
Receive a one-time gift : Assume that your grandmother wants to give you generous gift. She wants you to choose which one of the following sets of cash flows
What is operating income for last year under absorption cost : Last year, Fingal expected to produce 20,000 units. What is operating income for last year under absorption costing
Pay for the investment today : If you can earn 6.15% interest compound monthly by depositing your money in a bank, how much should your ?
Calculate the amortization on the bond premium : Calculate the amortization on the bond premium or discount using the effective interest method for the first interest payment
What would be the forecast for next year : What would be the forecast for next year's sales using the naïve approach?
Prepare the appropriate journal entry : The Wild Accounting Corporation reported the following transactions in 2014. For each event, prepare the appropriate journal entry
What is the aftertax salvage value of the equipment : The company's tax rate is 35 percent. What is the aftertax salvage value of the equipment?
Determining the future value : What's the future value of $25,000 after 23 years if the appropriate interest rate is 15.25%, compounded annually?

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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