Reference no: EM132691816
Questions -
Q1. A company issues $3,000,000 face value of five-year bonds dated 1 January 2015 when the market interest rate on bonds of comparable risk and terms is 4%. The bonds pay 3% interest annually on 31 December. Based on the effective interest rate method, what is the carrying amount of the bonds on 31 December 2015?
Q2. Lesp Industries issues five-year bonds dated 1 January 2015 with a face value of $3,000, 000 and 3% coupon rate paid annually on 31 December. The market interest rate on bonds of comparable risk and term is 4%. The sales proceeds of the bonds are $1,910,964. Under the effective interest rate method, what is the interest expense in 2017?
Q3. A company enters into a finance lease agreement to acquire the use of an asset for three years with lease payments of €9,000,000 starting next year. The leased asset has a fair market value of €49,000,000 and the present value of the lease payments is €57,250,188. Based on this information, calculate the value of the lease payable reported on the company's balance sheet?
Q4. Comte Industries issues $5,000,000 worth of three-year bonds dated 1 January 2015. The bonds pay interest of 5% annually on 31 December. The market interest rate on bonds of comparable risk and term is 5%. The sales proceeds of the bonds are $5,040,849. Under the straight-line method, what is the interest expense in year one?
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What amount should RAYMOND COMPANY report
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What are the trade offs that dianrong is facing
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How do construct general journal entry to record transaction
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Calculate the value of the lease payable reported
: The leased asset has a fair market value of €49,000,000, calculate the value of the lease payable reported on the company's balance sheet
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Objects outweigh the potential risks
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Calculate the carrying value after one year
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What the capital balances of o and m on january were
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