Calculate the issue price of the bonds

Assignment Help Accounting Basics

Reference no: EM13120775

On January 1, 2008, Michelle Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%.

Directions: Prepare your responses on a separate Excel spreadsheet as directed on the Problem Set 3 directions.
a. Calculate the issue price of the bonds.
b. Without prejudice to your solution in part a, assume that the issue price was $884,000. Prepare the amortization table for 2008, assuming that amortization is recorded on interest payment dates.

Reference no: EM13120775

Questions Cloud

Net loss for financial reporting : The amount that Khan, Inc. reports as a net loss for financial reporting purposes in 2011, assuming that it uses the carryback provisions, and that the tax rate is 30% for all periods affected, is ??

When the fair market value of the assets acquired : When the fair market value of the assets acquired in a business purchase exceed the purchase price, negative goodwill (also called badwill) arises. When negative goodwill arises, GAAP requires that it be allocated to.

Explain what is the probability that at least one worker : A poll states that 30% of the workers in a large company have new desks. If 6 workers are selected at random, what is the probability that at least one worker has a new desk?

How many milliliters of 0.200 m naoh will be required : How many milliliters of 0.200 M NaOH will be required to titrate 14.5 mL of 0.479 M H2SO4?

Calculate the issue price of the bonds : On January 1, 2008, Michelle Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%.

How much will the ph change : A beaker with 185 mL of an acetic acid buffer with a pH of 5.00 is sitting on a benchtop. The total molarity of acid and conjugate base in this buffer is 0.100 M. A student adds 6.70 mL of a 0.440 M HCl solution to the beaker.

Find probability that percentage in sample will deviate : What is the probability that the percentage in the sample will deviate from the population percentage by no more than 7 percentage points?

What happens if the first shot is intentionally missed : What happens if the first shot is intentionally missed? What is the better strategy shooting the deadliest one or the weakest one?

Discuss the three approaches for reporting changes : Discuss the three approaches for reporting changes in accounting principles. Include additional points about how these approaches may be impacted by the adoption of new IFRS standards.

User Account

All Pages