User Account

All Pages

Compute for the effective interest rate

Assignment Help Accounting Basics
Reference no: EM133067914

Question - On March 2, 2020, , VWX Co. received authorization to issue P6,000,000, 5-year bonds with interest of 12% per annum, payable every Mar.20d. The bonds were issued at 103.5% (net of bond issue cost) on the same date. The company will use the amortized cost method.

Required -

1. Compute for the effective interest rate. Carry computations up to the three decimal places.

2. Prepare a premium amortization table. Carry computations to the nearest whole peso.

3. Prepare the 2020 entries including year-end adjustments (Dec. 31) and a compound closing entry.

Reference no: EM133067914

Questions Cloud

Calculate the translation gain or loss to us company : The Australian subsidiary of a U.S. multinational company has net exposed assets of A$ 1,200,000. The Australian dollar goes from US$ 0.68 per A$ to US$ 0.73 pe
Software systems design relate to enterprise architecture : How does software systems design relate to enterprise architecture? Why is EA so hard to define, explain, and get right?
Money market hedge or forward market hedge : Suppose that your firm exports semiconductors to Germany for €1,000,000 receivable in one vear. The annual interest rate in the U.S. is 6% and 8% in Germany.
What is the volume and open interest : What is the volume and Open interest after each round? Round 1: Grabinski buys 3 futures contracts, Eli sells 2, and Ms. Patterson sells 1.
Compute for the effective interest rate : On March 2, 2020, , VWX Co. received authorization to issue P6,000,000, 5-year bonds with interest of 12% per annum, Compute for the effective interest rate
Long payback period of seven years : Why is a long payback period of seven years for an investment in a recruiting candidate assessment center more risky for an employer than a shorter payback peri
Required rate of return stock : Required Rate of Return Stock R has a beta of 1.3, Stock S has a beta of 0.45, the expected rate of return on an average stock is 8%, and the risk-free rate is
How much gross profit to be recognized by Columbus Inc : Collections from customers in 2021 100,000. How much gross profit to be recognized by Columbus, Inc. using Percentage of Completion method
Calculate the ex-ante expected return : You are given the following forecasts for the economy and the Agile Company at the beginning of the year:

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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