User Account

All Pages

Calculate the bond price paid

Assignment Help Financial Accounting
Reference no: EM132978785

Question - Test Co. has purchased a bond investment on January 1, 2020, semi-annually that pays 8% annual interest, paid at the end of each interest period. The bond has a face value of $10,000, six years until maturity, and was purchased to yield a 6% annual return (market rate).

Test uses IFRS and uses the amortized cost method. It has a December 31, 2020 year end.

Required -

a) Calculate the bond price paid (use any method but show the factors you used).

b) Show all of the journal entries for the bond for Test for 2020. Show any calculations.

Reference no: EM132978785

Questions Cloud

Prepare the December year-end adjusting entry : Uncollectibles are estimated to be 1.50% of accounts receivable. Prepare the December 31 year-end adjusting entry for uncollectibles
Experimenting with a model as opposed to a real object : Describe a situation that could be modeled using a Linear Programming Model. What are the advantages of analyzing and experimenting with a model as opposed to a
Example of an application of method : Choose one of the following forecasting methods discussed in this week's chapter: last-value, averaging, moving-average, or exponential smoothing.
Calculate the gross requirements : Flora's Fabulous Fontains top product is its Model A. Flora is preparing for her busy season and is building 1,500 Model A fountains. Calculate the gross requir
Calculate the bond price paid : The bond has a face value of $10,000, six years until maturity, and was purchased to yield a 6% annual return. Calculate the bond price paid
Find the expected value for the build new plant option : How did they find the expected value for the Add Assembly Line option?
How is this ethically in the wrong : "You are the IT administrator for your company. One of the employees discovers a loophole in the security whereby the employees may access the personnel records
Locate the root cause of a data quality issue : How can you use AHIMA Data Quality Model to locate the root cause of a data quality issue?
How are these transactions treated for income tax purposes : Brandi had the following transactions: a long-term capital gain from the sale of land, How are these transactions treated for income tax purposes

Reviews

Write a Review

Financial Accounting Questions & Answers

  What potential adjustment might be necessary at the end

What potential adjustment might be necessary at the end of 2020 other than amortization. Journalize the patent acquisition and amortization for the year.

  Create the journal entry to record the exchange of the asset

Create the journal entry to record the exchange of the asset in 17 for Bob the Builder, assuming that the transaction has commercial substance

  Can a portfolio standard deviation be standard deviation

Can a portfolio standard deviation be less than the standard deviation of every asset in the portfolio? If yes, please give an example.

  What will your total sum of money be ten years from now

Your son is going to college in 10 years, and you want to have a certain savings by then. What will your total sum of money be ten years from now

  How much of the accounting department costs

The costs will be allocated based on the number of employees using the direct method. Information regarding costs and how much of the accounting department costs will be allocated to the production

  Why do precedent transaction tend to provide higher multiple

Why do precedent transactions tend to provide higher multiple ranges than comparable companies? What do you think is the main advantage(s) of precedent

  Question head-first company plans to sell 5080 bicycle

question head-first company plans to sell 5080 bicycle helmets at 68 each in the upcoming year. unit variable cost is

  What is the cost of common equity

Using CAPM - The risk-free rate is 3%, the market risk premium is 5%, and the stock's beta is 1.20. What is the cost of common equity (RE)

  Calculation of final contract pricea 500000 fixed price

calculation of final contract price.a 500000 fixed price economic price adjustment contract contains a provision

  How much revenue would be recognized by wildhorse

Wildhorse Company, Using five-step process for revenue recognition, determine how much revenue would be recognized by Wildhorse. Assume IFRS is followed.

  Pace corporation acquired f spin companys common stock

Pace Corporation acquired 100 percent of Spin Company's common stock on January 1, 20X9. Balance sheet data for the two companies immediately

  Process costing system

The Gasson Company uses the weighted-average method in its process costing system. The company's ending work in process inventory consists of 11,000 units, The ending work in process inventory is 100% complete with respect to materials and 60% comple..

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