User Account

All Pages

Calculate the bonds issue price

Assignment Help Financial Accounting
Reference no: EM132315921

Question

On January 1,2017, Vision Inc.issued bonds with a maturity value of $5 million when the market rate of interest was 5%. The bonds have a coupon (contractual) interest rate of 4% and mature on January 1,2022. Interest on the bonds is payable semi-annually on July 1 and January 1 of each year. The company's year end is December 31.

Instructions:

a. Calculate the bonds' issue price.

b. Make a bond amortization schedule from the data of issue up to and including January 1, 2019.

c. Make all of the required journal entries related to the bonds that Vision Inc. will record during 2017, including any adjusting journal entries at December 31, 2017.

d. What amounts would be reported as current and non-current in the liabilities section of Vision's December 31,2017, balance sheet?

e. Record the payment of interest on January 1,2018.

f. The bonds were redeemed on January 1,2019 (after the interest has been paid and recorded) at 98. Prepare the journal entry for the redemption of the bonds.

g. Assume instead that the bonds were not redeemed on January 1, 2019. Record the entry for the repayment of the bonds on January 1,2022.

h. What will be total interest payment over the 5 years life of the bonds? what will be the total interest expense over the 5 years life of the bonds?

Reference no: EM132315921

Questions Cloud

Find the possible magnetic quantum numbers : Question - If the momentum quantum number is 2, then find the possible magnetic quantum numbers
Why yeast cannot use certain sugars for fermentation : Provide a biological reason for why yeast cannot use certain sugars for fermentation. When baking broad, what product of fermentation causes the dough to rise
Calculate the annual depreciation based on the formula : On January 1, the balance in supplies was $800. During the period, purchases of supplies were $950. Defective supplies costing $100 were returned.
Communications for medium-sized software development firm : Imagine you are the Director of Internal Communications for a medium-sized software development firm. Business etiquette can make or break a career.
Calculate the bonds issue price : What will be total interest payment over the 5 years life of the bonds? what will be the total interest expense over the 5 years life of the bonds?
Research high-context and low-context countries : Research high-context and low-context countries. explain why each country is either high or low, citing several examples of behaviors and cues.
Organizations from theory of scientific management : Trace the history of organizations from the Theory of Scientific Management to Human Resources Management. Who were the key players and what did they believe?
What it takes to be effective employee within organization : What it takes to be effective employee within organization. Write about personality types and personal values that are attributed to being outstanding employee
What is the industry in which you have identified problem : What is the Industry in which you have identified the problem? Provide details on the product/brand related to the industry. Why did you choose this industry?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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