Determine the issuance price of the bond

Assignment Help Accounting Basics

Reference no: EM13131188

X corp issued a $100,000 5 year bond, stated interest rate on bond at 10% on January 1,2010. Interest is paid annually at the end of the year. the market interest rate was 7%.
1. Determine the issuance price of the bond on January 1,2010. Record the entry in the accounting equation.
2. Record entry in accounting equation when bond interest is paid on December 31,2010.
3. Show how bonds would be presented on balance sheet on December 31,2011. Two years from issuance.
4. Show the entry in the accounting equation when the bonds mature in 5 years.

Reference no: EM13131188

Questions Cloud

Word problem-fractions : Mr and Mrs Samuel visited Florida and purchased 120 oranges. They gave 1/4 of them to relatives ate 1/12 of them in the hotel and gave 1/3 of them to friends. they shipped the rest home to Illonois.

Company period-ending inventory : She also has another 250 units in her van, ready to deliver per a customer order, terms FOB destination, and another 70 units out on consignment to a friend who owns a retail store. How many units should Jenny include in her company's period-endin..

Provided many forms of social media : The Internet has provided many forms of social media and new forms are continuously emerging. If you were a reporter with access to all forms of media distribution, which do you choose first to tell a story? Why?

Calculate the enthalpy change : Calculate the enthalpy change that occurs when 1.00 kg of acetone condenses at its boiling point (329.4 K). The standard enthalpy of vaporization of acetone is 29.1 kJ · mol -1 .

Determine the issuance price of the bond : X corp issued a $100,000 5 year bond, stated interest rate on bond at 10% on January 1,2010. Interest is paid annually at the end of the year. the market interest rate was 7%.

Find higher probability of a type two error : Which study has the higher probability of a Type II error, the 60-subject study or the 100 -subject study? Which study has higher power?

U.s. automotive manufacturer : The CEO of a major U.S. automotive manufacturer has asked you (a global marketing manager) to write about the causes and effects of importing most of its materials from foreign manufacturers. The paper will be provided to the board of directors and s..

Explain how much should ted include in his gross income : The next week he received a $100 check from the manufacturer. Explain how much should Ted include in his gross income

Noncontrolling interest in the subsidiary income : Rojas Co. owned 7,000 shares (70%) of the outstanding 10%, $100 par preferred stock and 60% of the outstanding common stock of Brett Co. When Brett reported net income of $780,000, what was the noncontrolling interest in the subsidiary's income?

User Account

All Pages