User Account

All Pages

Calculate the issue price of the bonds

Assignment Help Accounting Basics
Reference no: EM132547468

Question - Whispering Ltd. sold $6,830,000 of 8% bonds, which were dated March 1, 2020, on June 1, 2020. The bonds paid interest on September 1 and March 1 of each year. The bonds' maturity date was March 1, 2030, and the bonds were issued to yield 10%. Whispering's fiscal year-end was February 28, and the company followed IFRS. On June 1, 2021, Whispering bought back $2,830,000 worth of bonds for $2,730,000 plus accrued interest.

Required -

a. Using a financial calculator, or Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds.

b. Prepare the journal entry for the scheduled interest payment on September 1, 2020.

c. Prepare any year-end entry required at February 28, 2021.

d. Prepare the entry required for the redemption of face value $2,830,000 of the bonds on June 1, 2021.

Reference no: EM132547468

Questions Cloud

How much Jills net take home pay : Jill's employer contributes 9% of her gross pay to a superannuation fund on her behalf. How much Jill's net take home pay
How to calculate the cost per unit and the margin for the fb : How to Calculate the cost per unit and the margin for the FB and the TJ using activity base costing principles to absorb the overheads.
What does a butterfly kiss feel like : What does a butterfly kiss feel like? What sequence of neuronal events make this feeling happen?
Determine the amount of heat transferred : Water at uniform temperature of 20°C enters a 15 mm circular tubeat a rate of 9.5cm3/s. The tube wall is maintained at a constant temperature of 60°C.
Calculate the issue price of the bonds : Using a financial calculator, or Excel function PV, calculate the issue price of the bonds and prepare the entry for the issuance of the bonds
Types of population growth models : Differentiate between the types of population growth models that can increase or decrease the elephant population.
How to make cost of good manufacture statement : How to Make Cost of Good Manufacture Statement? The Black Pepper Corporation desires to classify the cost and provides you the figure of trial balance
What strategic initiatives did hr implement to resolve : What strategic initiatives did HR implement to resolve the organizational issue or achieve the company's strategic goal? What behavioral competencies did HR.
What will cells synthesize : What will your cells synthesize if more than enough ATP is currently being produced?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Calculate kissel depreciation expense

Calculate Kissel's 2012 depreciation expense for these three assets, assuming that Kissel employs the straight-line method

  Discuss earnings per share on common stock

Income before income tax was $280,000, and income taxes were $41,600, for the current year.

  Dakota equipment inc issued 4000 shares of its 1 par value

dakota equipment inc issued 4000 shares of its 1 par value common stock for 20 per share on january 1 2008. on the same

  Who might be affected by the suggested classification

Who might be affected by the suggested classification? Will the suggested classification affect Cameron's bonus? Explain.

  The adjusting entry to record depreciation

The adjusting entry to record depreciation for the company automobile

  Should roi be the only gauge a company uses to evaluate

should roi be the only gauge a company uses to evaluate investments? also is it wise for a company to lose money on one

  Determine gene taxable income

Gene is single and for 2014 has AGI of $40,000. He is age 65 and has no dependents. Determine Gene's taxable income for 2014

  Prepare debt service fund and government-wide entries

Prepare debt service fund and government-wide entries in general journal form to reflect, as necessary, the following information and transactions for FY 2017

  Suppose kaplan as the sole owner of sky air is considering

suppose kaplan as the sole owner of sky air is considering the purchase of a company jet for executive rather than for

  What is the bond yield to maturity

Suppose a ten-year, $1,000 bond with an 8.2% coupon rate and semiannual coupons is trading for $1,034.63. What is the bond's yield to maturity

  What is the carrying value of the notes receivable

What is the carrying value of the notes receivable for Cumulus Corporation on December 31, 2019 after recording the interest payment

  What is the percentage increase in cost of goods sold

This is the following cost of goods sold data for a company: If 2016 is the base year, what is the percentage increase in cost of goods sold from 2016 to 2018

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