Calculate the issue price of the bond

Assignment Help Accounting Basics
Reference no: EM133149985

Question - On October 1, 2020, Best Biopharma Inc. issued an $900,000, 10.0%, seven-year bond. Interest is to be paid annually each October 1. Assume a November 30 year-end.

Required -

a. Calculate the issue price of the bond assuming a market interest rate of 8.0%.

b. Prepare an amortization schedule using the effective interest method.

Reference no: EM133149985

Questions Cloud

Determine the estimated selling price of the stock : A stock just paid an annual dividend of $5.00, which is expected to remain constant indefinitely. Determine the estimated selling price of the stock
What is the amount of cash received by abc corp on september : The issue date was planned for July 1st when the market interest rate was at 6%. What is the amount of cash received by ABC Corp on September
What depreciation expense will abc corp record : On January 1st 2020 ABC Corp purchased a piece of equipment used in the manufacturing of the products they sell. What depreciation expense will ABC Corp record
General business and macro-economic environment : Conduct an analysis of the general business / macro-economic environment facing Mihi. For each component of your analysis,
Calculate the issue price of the bond : On October 1, 2020, Best Biopharma Inc. issued an $900,000, 10.0%, seven-year bond. Calculate the issue price of bond assuming market interest rate of 8.0%
What the trevor calculated annual straight line depreciation : Trevor also determined the residual value of the truck to be $1,000. What the Trevor calculated the annual straight line depreciation of the truck
What is the rate of return investors earn on this investment : Assume these investments sell for $807 in return for which you receive $4,000 in 33 years. What is the rate of return investors earn on this investment
Components of information system : Describe the four components of an information system.
Should the company sell evamantium or adamantium : Logan Company produces several products from processing wolvotron, a rare mineral. Should the company sell evamantium or adamantium

Reviews

Write a Review

Accounting Basics Questions & Answers

  Delmott sells a snowboard xpert that is popular with

delmott sells a snowboard xpert that is popular with snowboard enthusiasts. below is information relating to delmotts

  How have your perspectives about race

How have your perspectives about race, gender, and class changed after completing this course and how did participating in discussions help your understanding of the subject matter? Is anything still unclear that could be clarified?

  Compute the activity rate for each of the activity cost pool

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of cu..

  Compute dow basic and diluted earnings per share

On February 28, 2013, Dow sold 63,000 common shares. Compute Dow's basic and diluted earnings per share for the year ended December 31, 2013

  How much is the interest after fifteen years

How much is the interest after 15 years? An investment is made in a cooperative which agrees 3% compounded annually. Mr. Smith invested an amount of P 250, 000.

  Find the balance of prepaid insurance

Operating Expenses and cash paid for expenses consisted of amounts for insurance and wages only. Find the 1/1/24 balance of Prepaid Insurance

  What is positive accounting theory

What is positive accounting theory, game theory and power theory? What is information and measurement perspectives? What is Nash Equilibrium?

  Determine the amount of factory overhead that under applied

Annapolis Corporation recorded $44,000 of costs related to factory overhead. Determine the amount of factory overhead that was (over) or under applied

  What amount should canary record the purchases

List price of P50,000 and payment terms of 2/10, n/30. Canary uses the net method of recording purchases. At what amount should Canary record the purchases?

  What will be the net unamortized balance

What will be the net unamortized balance of the differences between fair values and carrying values at the end of Year 1

  Identify and discuss the six principle of control activities

Suggest the two most important principles for an online retail business versus a brick-and-mortar retail business. Provide support for your rationale.

  How does investing in more than one asset reduce risk

How does investing in more than one asset reduce risk through diversification? What is the difference between an expected return and total holding period return

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