Determine the total bond interest expense

Assignment Help Accounting Basics
Reference no: EM131830369

Question - Par Four Issues $1,700,000 of 10%, 10-year bonds dated January 1, 2011, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $1,505,001.

Required

1. Prepare the January 1, 2011, journal entry to record the bonds' issuance.

2. For each semiannual period, compute (a) the cash payment, (b) the straight-line discount amortization, and (c) the bond interest expense.

3. Determine the total bond interest expense to be recognized over the bonds' life.

4. Prepare the first two years of an ammortization table using the straight-line method.

5. Prepare the journal entries to record the first two interest payments.

Reference no: EM131830369

Questions Cloud

Find the value o[ the third central moment of x : Suppose that X is a random variable [or which £( X) = 1, £(X2) = 2, and £(X3) = 5. Find the value o[ the third central moment of X.
Identify developmentally appropriate practices : Identify strategies for short- and long-term planning to set instructional goals in alignment with standards for developing teacher objectives.
Who is to say what can and cannot be posted on the web : There are concerns about Web content at levels. Parents want to protect their children from pornography. Who is to say what can and cannot be posted on the Web?
What is the value of the fifth central moment : If X has a uniform distribution on the interval (a, b), what is the value of the fifth central moment of X?
Determine the total bond interest expense : The bonds are issued at a price of $1,505,001. Determine the total bond interest expense to be recognized over the bonds' life
How has the traditional foreclosure process failed : How has the traditional foreclosure process failed under these unusual circumstances? Please discuss that question and at least 1 of the 3 points above.
Develop capital budgeting decision model showing cash flows : Develop a capital budgeting decision model showing cash flows, cost of capital and decision metrics (i.e., npv, irr and payback).
How can we as citizens help monitor accuracy of web content : Have you taken what you found, used the information, and not checked the content for accuracy? How can we as citizens help monitor the accuracy of Web content?
Compute depreciation expense using the straight-line method : Compute 2012 depreciation expense using the straight-line method assuming the machinery was purchased on September 1, 2012

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.

  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!

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