Calculate the bond issue price and the resulting premium

Assignment Help Accounting Basics
Reference no: EM131784428

Problom

On May 1, 2016, Ezzy Corporation issued a 4-year bond worth $445,000 with an interest rate of 8% per annum. Interest is to be paid semi-annually on October 31 and April 30. At the time of the issuance, the market interest rate was 6%. Ezzy Corporation amortizes any premium or discount using the effective interest method.

Calculate the bond issue price and the resulting premium or discount.

Do not enter dollar signs or commas in the input boxes.
Round your answers to the nearest whole number.
For transactions with more than one debit or credit, enter the accounts in alphabetical order.
For bond calculations, use the PV tables in Appendix II of the textbook.

Bond Issue Price: $Answer

Premium or Discount: $Answer

b) Prepare journal entries to record the following bonds payable transactions.
1) Issuance of bonds on May 1, 2016.

Reference no: EM131784428

Questions Cloud

Prepare the adjusting entry on december : Crop Corporation (with a December 31 year-end) issued $429,000, 3% bonds due in 8 years on May 1, 2016. Prepare the adjusting entry on December 31, 2016.
How much more revenue would it have brought to digby corp : Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Digby Corp
What is the largest possible magnitude : An electron moves at 2.20×106 m/s through a region in which there is a magnetic field of unspecified direction and magnitude 7.90×10-2 T
Calculate the maximum increase in contribution margin : calculate the maximum increase in contribution margin. Assume that Xcelerate can sell all products manufactured
Calculate the bond issue price and the resulting premium : Calculate the bond issue price and the resulting premium or discount. Prepare journal entries to record the following bonds payable transactions.
Determine the natural frequency of the beam : A given beam was vibrated by an eccentric mass shaker of mass 5.44 kg at the midspan, and resonance was found at 435 cps.
Describe at least two ways the material : Describe at least two ways the material you have learned in this unit applies to driving a car (refer to the Arizona Driver License Manual located
Calculate the minimum transfer price : Calculate the minimum transfer price Division A is willing to accept.
Find the first two natural frequencies : Determine the first two natural frequencies and mode shapes for the longitudinal vibration of a uniform rod with a spring of stiffness.

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.

  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!

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