User Account

All Pages

Determine the carrying value of the bond liability

Assignment Help Accounting Basics
Reference no: EM13924448

On January 1, 2013, Janus Company issued bonds with a face value of $200,000, a stated rate of interest of 6 percent, and a 10 year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 5 percent at the time the bonds were issued. The bonds sold for $215,443. White used the effective interest rate method to amortize bond discount.

Required: 

a. Determine the amount of the premium on the day of issue. 

b. Determine the amount of interest expense recognized on December 31, 2013. 

c. Determine the carrying value of the bond liability on December 31, 2013. 

d. Provide the general journal entry necessary to record the December 31, 2013, interest expense.

Reference no: EM13924448

Questions Cloud

From a strict valuation standpoint : My friend is also a stockbroker and is trying to get me to buy the stock of a regional wellness company. The stock has a current market price of $27, its last dividend was $2.15, and the company’s earnings and dividends are expected to increase at a ..
Violation of criminal laws results in penalties : 1. Criminal laws are a protection of society, and the violation of criminal laws results in penalties to the violator such as fines or imprisonment.
Understanding of the cultural similarities and differences : 1.Individually: Select a situation that is currently in the news that involves two or more cultures. Analyze the situation using Hofstede's original four dimensions, plus the universalism/particularism and task/relationship dimensions.
Determine the value of the companys stock : An assisted living home has maintained a dividend payment of $5.25 per share for many years. The same dollar dividend is expected to be paid in future years. If investors require a 11% rate of return on investments of similar risk, determine the valu..
Determine the carrying value of the bond liability : Provide the general journal entry necessary to record the December 31, 2013, interest expense.
Which is not true about the telecommunications act of 1996 : Under the rate-of-return regulation, plant depreciation is handled by subtracting the depreciation from the rate base and by the application of return on capital investment. Which of the following is not true about the Telecommunications Act of 1996...
Bonus-what is its yield to maturity : A large hospital has a bond issue outstanding with seven years remaining to maturity, a coupon rate of 11% with interest paid annually, and a par value of $1050. The current market price of the bond is $1,315.87. What is the bond’s yield to maturity?..
Analyze issue from related to intercultural communication : Compare culture clashes or basic differences that could account for possible miscommunications and propose ways to adapt and overcome such differences to enhance intercultural proficiency in your current role or in a hypothetical situation you dev..
Paper - resistnce to change in healthcare : Conduct research on your topic relevant to interprofessional leadership and the health care field using credible sources ON BELOW TOPIC., TOPIC: RESISTNCE TO CHANGE IN HEALTHCARE

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