User Account

All Pages

Calculate the issue price of the bond

Assignment Help Accounting Basics
Reference no: EM133041275

Question - Neutron Corp. issued $2,000,000 par value, 8%, 5-year bonds on December 31, 2010. Interest is to be paid semiannually on June 30 and December 31. The bonds were sold when the market rate of interest was 10%. The company uses the effective interest method of amortization.

Required -

a. Calculate the issue price of the bond.

b. Prepare all the journal entries required with dates, relating to this bond for the years 2010 and 2011.

c. Show, in good form, how the bonds will be presented on the balance sheet on December 31, 2011.

Reference no: EM133041275

Questions Cloud

Benefits of using business letters instead of e-mail : What are the three benefits of using business letters instead of e-mail? How should business people respond to online posts?
Reflect on the responsibilities of the parent : Responsibilities of Superintendent/Principle. Where do you fall into these roles, what responsibility do you have in supporting children with allergies
Develop age-appropriate strategies : Explain why it is essential to support preschool children to develop age-appropriate strategies to regulate aggression?
What is the expected monetary value : The questions in this section are independent of Part A and Part B. The scenario is the same but the values are different.
Calculate the issue price of the bond : Neutron Corp. issued $2,000,000 par value, 8%, 5-year bonds on December 31, 2010. Calculate the issue price of the bond
Barnes and nobles omni-channel retail strategy : How did the company (or unit within a company) get started? What are their major sources of revenue?
Principal arguments of pharmaceutical companies : What are the principal arguments of pharmaceutical companies that oppose making exceptions to IPR laws for developing countries? What are the arguments by NGOs
What is barnes and noble major source of revenue : What is Barnes and Noble's major source of revenue? What are Barnes and Noble's major expenses?
Differences between labor unions based in companies : This will be a group discussion concerning the low level of union membership in the United States, and why union membership has fallen to current levels.

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