User Account

All Pages

Calculate the bond issue price and the resulting premium

Assignment Help Accounting Basics
Reference no: EM132617398

Question - On May 1, 2016, Ezzy Corporation issued a 4-year bond worth $374,000 with an interest rate of 7% 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 2%. Ezzy Corporation amortizes any premium or discount using the effective interest method.

Required -

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

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

Reference no: EM132617398

Questions Cloud

Why is it so difficult to prosecute cyber criminals : Internet-related crime occurs every minute. Cyber criminals steal millions of dollars with near impunity. For everyone that is captured nearly 10,000.
Define what are some advantages the r programming has : Why are statistical programming languages important to data scientists? What are some advantages and disadvantages the R programming language has over.
How much would you be willing to pay : How much would you be willing to pay for one share of ACME stock if the dividend remains constant and you require a 9% rate of return
Determine the combinations of x that will minimize : ALVIMA food complex PLC is producing MAWEL pasta (X1), Determine the combinations of X1 and X2 that will minimize the TC of ALVIMA food complex PLC
Calculate the bond issue price and the resulting premium : On May 1, 2016, Ezzy Corporation issued a 4-year bond worth $374,000 with an interest rate of 7% per annum. Calculate the bond issue price
Discuss the pricing strategy of the company : Based on past demand (sales) data of the firm, forecast the demand equation for the product/service using Excel to derive the demand equation.
Describe what you find to be most interesting information : For this assignment, you are asked to locate any company privacy policy. Some of the more popular ones might include Google, Apple, Or Microsoft.
Important for organization supply chain : Discuss why it is important for an organization's supply chain to include the management of their data and financial strategies
Describe the marketing channels of the product : Describe and discuss the structure of the market for the firm's product/service. Describe the marketing channels of the product/service

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