Determine net carrying value of the bond liability

Reference no: EM13124966

On June 1, 2001, Janson Bottle Company sold $500,000 in long-term bonds for $428,800. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10% (use the 10%). The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective interest method. (note: I know that the present value doesn't equal $428,800 precisely. That's okay. Just use the $428,800 for your effective interest amortization schedule.)

Determine interest expense for the year ended 5/31/03. (Round to the nearest ten dollars)

Determine net carrying value of the bond liability as of 12/31/03.

Reference no: EM13124966

Questions Cloud

Minimum sample size for managers to estimate minutes : the population of completion times is 10.4 minutes, what is the minimum sample size needed for the managers to be 95% confident that their estimate is within 2.2 minutes of u?

How is holly taxed on the distribution : At the beginning of the year, Penguin Corporation (a calendar year taxpayer) has accumulated E & P of $55,000. During the year, Penguin incurs a $36,000 loss from operations that accrues ratably. On October 1, Penguin distributes $40,000 in cash t..

Journal entries to record the pension expense : Prepare journal entries to record the pension expense and funding of plan assets to verify the change in the pension asset/liability.

Illustrate what comments may danle expect to receive : the SEC’s Division of Corporate Finance, illustrate what comments may Danle expect to receive regarding its disclosure in that period? Discuss the basis for the comments you have identified

Determine net carrying value of the bond liability : On June 1, 2001, Janson Bottle Company sold $500,000 in long-term bonds for $428,800. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10% (use the 10%).

Computation involving a change in blood ph : Calculation involving a change in blood pH. Although the pH of human blood is normally between pH 7.3-7.5, certain situations can take place which bring about "acidosis." Acidosis is defined as an abnormal lowering in the blood pH

Happy endings : Compare and contrast the literary styles used in Margaret Atwood's "Happy Endings" and Alice Munro's "Prue"

Problem of tickets and expense tickets : Prepare a 250- to 300-word memo about time tickets and expense tickets. Include an explanation about what each is used for, how the two are different, and what information may be found on each.

Examine the basis for the comments you have identified : If Danle's Form 10-K for the year ended December 31, 2010, were to be reviewed by the SEC's Division of Corporate Finance, what comments may Danle expect to receive regarding its disclosure in that period? Examine the basis for the comments you h..

User Account

All Pages