Determine the bonds issue price

Assignment Help Accounting Basics
Reference no: EM13153247

Harvard Research issues bonds dated January 1, 2009, that pay interest semiannually on June 30 and December 31. The bonds have a $45,000 pay value, an annual contract rate of 6%, and mature in 6 years.

Required:

For each of the following three separate situations, (a) determine the bonds' issue price on January 1, 2009, and (b) prepare the journal entry to record their issuance.

1. Market rate at the date of issuance is 4%.

2. Market rate at the date of issuance is 6%.

3. Market rate at the date of issuance is 8%.

Reference no: EM13153247

Questions Cloud

Demand for its fine owner selected : A winery estimates that the demand for its fine Owner's Select, has an income elasticity of 2, where income refers to the income per capita of its customer base.
Calculate the total bond interest expense : 1. Calculate the total bond interest expense over the bonds' life. 2. Prepare a straight-line amortization table for the bonds' life.
What would happen to the production possibility frontier : What would happen to the Production Possibility Frontier over time? How would invention and technological improvement modify your answer?
Explain what is so special about polynomials : The true population regression function, it isn"t. Before leaving this section we should ask and answer the following question. What"s so special about polynomials?
Determine the bonds issue price : For each of the following three separate situations, (a) determine the bonds' issue price on January 1, 2009, and (b) prepare the journal entry to record their issuance.
Balance sheet approach to estimate bad debt expense : If a company uses the balance sheet approach to estimate bad debt expense, bad debt expense for a period can be determined by:
How will firms react to rising output price levels : How will firms react to rising output price levels? What reactions can they expect from their employees and suppliers over time?
How much medicare tax did she pay : How much Medicare Tax did she pay? What is her marginal tax rateon her federal personal income tax? Details are related to the U.S.
What critical values replace for bonferroni correction : What critical values should replace 1.645 and 2.326 in order to apply a Bonferroni correction to this multiple testing situation? What would the result of the Bonferroni correction be in terms of stars?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Production cost data

Crawford Company has the following equivalent units for July: materials 10,000 and conversion costs 9,000. Production cost data are:

  Determining number of shares outstanding

The charter of a corporation provides for the issuance of 109000 shares of common stock. Assume that 59000 shares were originally issued and 4700 were subsequently reacquired. What is the number of shares outstanding?

  Interest in capital of the partnership

What is the difference in treatment when an incoming partner purchases an interest by agreeing to perform services for the partnership and the partnership (1) gives a 25% interest in the capital of the partnership,

  Implications to quality of income statement

Why are there so many revenue recognition methods? Why is it so subjective and what are the implications to the quality of the income statement?

  What is the ending oaa balance

If the beginning balance in OAA is $3,900, and the following transactions occur, what is the ending OAA balance?

  Which marketing management orientation

Jewelry stores want to provide their customers with the highest quality of diamonds available at the lowest possible prices. Unfortunately, the lowest priced diamonds these days are sold by African rebels who use the profits to engage in genocide.

  How are bond ratings determined

How are bond ratings determined?

  Determining performance evaluation-residual income

Calculate net operating income and residual income for each division. Compare the two divisions and discuss the usefulness of ROI and residual income for the purpose of comparing the divisions.

  Positive intent and ability to hold the bonds

Lance Brothers Enterprises acquired $750,000 of 1% bonds, dated July 1, on July 1, 2011, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity.

  Calculate the operating income for july

Preppy Co. makes and sells a single product. The current selling price is $30 per unit. Variable costs are $21 per unit, and fixed expenses total $90,000 per month. Sales volume for July totaled 12,000 units.

  Total selling expenses for the specific month

For March, sales revenue is $800,000; sales commissions are 4% of sales; the sales manager's salary is $80,000; advertising expenses are $75,000; shipping expenses total 1% of sales; and miscellaneous selling expenses are $2,100 plus 3/4 of 1% of ..

  Cost of goods sold and gross profit rate

At the beginning of the year, Downtown Athletic had an inventory of $200,000. During the year, the company purchased goods costing $800,000. If Downtown Athletic reported ending inventory of $300,000 and sales of $1,050,000, their cost of goods so..

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd