User Account

All Pages

Calculate the proceeds on issuance of the bonds

Assignment Help Accounting Basics
Reference no: EM133074968

Question - McGrath Metal Manufacturing issued $75 million 20-year bonds to finance the expansion of its operations into Fort McMurray, Alberta. The bonds pay 6% semi-annually and were issued at 89.322 to yield 7%.

a) Calculate the proceeds on issuance (price to investors) of the bonds.

b) Prepare the journal entry to record the first semi-annual interest payment for the bonds.

c) Why is the price of the bonds different than the face value?

Reference no: EM133074968

Questions Cloud

Expected return and standard deviation of stock a : a. What are the expected return and standard deviation of stock A?
How much was the net cash flows from operating activities : Question - A company had net income of $231,827. Depreciation expense was $20,740. How much was the net cash flows from operating activities
What is the final assets : Jenny and Sal Gonzales are a very successful couple in their mid-30's. They have three children, and call you to discuss making changes to their current insuran
Estimate the value of each share : Estimate the value of each share using the free cash flow valuation date provided. Present your answer to two decimal places (e.g., $20.00)
Calculate the proceeds on issuance of the bonds : The bonds pay 6% semi-annually and were issued at 89.322 to yield 7%. Calculate the proceeds on issuance (price to investors) of the bonds
Geometric average growth rate : Suppose company ABC just issued a dividend of $1.88 per share on its common stock. The company paid dividends of $1.50, $1.59, $1.68, and $1.77 per share in the
What is the account equity balance : Given the following positions, what is the account's CURRENT equity balance? The current equity balance is $23,852.80
Demonstrate routing and switching techniques : Understand the fundamentals of the computer and Be able to carry out desktop engineering fundamentals
Prepare extract of Cipro Bhd Statement of Profit and Loss : Prepare extract of Cipro Bhd's Statement of Profit and Loss and Other Comprehensive Income for the year ended 31 December 2020

Reviews

Write a Review

Accounting Basics Questions & Answers

  It is a month later and ictu has made its first sale of a

ice cream trucks unlimited ictu started off from gregpearces summer job driving ice cream bikes. he enjoyedthe

  Calculate operating income using contribution method

Please provide (a) equation method and (b) contribution method to calculate operating income if Bernard installs 2,000 windows

  Calculate minimum transfer price that green grass required

Green Grass Co., a division of Lawn Supplies, Inc., Calculate the minimum transfer price that Green Grass should be required to accept.

  Calculate the total overhead cost to be applied to each

the splash makes large fiberglass swimming pools and uses machine hours and direct labor hours to apply overhead in the

  The domestic and foreign risk-free interest rates are 6

a currency is currently worth 0.80. over each of the next 2 months it is expected to increase or decrease in value by

  How many shares should you sell

If you own 2000 shares of Merdin Inc, how many shares should you sell to create a homemade dividend of $14000

  What is the balance in accumulated depreciation

The straight-line method is used for depreciation. What is the balance in accumulated depreciation on May 1, 2018 when the asset is sold

  What is the present yearly net operating income or loss

The present annual sales volume (at the $91 selling price) is 25,500 units. What is the present yearly net operating income or loss

  Prepare the entries required to record the transactions

Question - For each of the unrelated situations described below, prepare the entries required to record the transactions

  The balance sheet of cattlemans steakhouse shows assets of

the balance sheet of cattlemans steakhouse shows assets of 87300 and liabilities of 15000. the fair value of the assets

  How much revenue should manhattan today recognize upon

How much revenue should Manhattan Today recognize upon receipt of the $110 subscription price. How many performance obligations exist in this contract. Prepare the journal entry to recognize sale of 11 new subscriptions, clearly identifying the reven..

  When allocating costs is necessary

When Allocating costs is necessary? costs represent resources that are not shared across cost objects./ costs are assigned directly to the cost object.

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