Determine the value of the bond

Assignment Help Financial Accounting
Reference no: EM132747229

Problem - On 1/1/21, Anna Corp. issued 5 years bonds with a face value of $30,000 and a 16% stated rate payable semiannually. The bond was issued with a market/yield rate of 12% and a price of $34,416.

Requirement 1: Based on the information above, amortize the bond to determine:

a. 2022 Cash Flows Bond =

b. 2022 Interest Expense

c. 12/31/22 Carrying Value

Requirement 2: Determine the value of the bond on 1/1/23 assuming the prevailing market rate increased to 16%.

Reference no: EM132747229

Questions Cloud

Explain how can that possibly be a negative net decision : Explain to Ron the concept involved and how that could be a "negative net decision"? how can that possibly be a negative net decision for the company?
Chessfield case study : Identify broad implications of this case as you compare this case others scenario, and if you feel that this issue could be resolved by additional regulation
Do you think socializing can improve learning environment : Do you feel socializing with your colleagues is beneficial in creating a better learning environment? Why or why not? Think about how your work relationships.
Total cost of computing and enhance green computing : Many believe that cloud computing can reduce the total cost of computing and enhance "green computing" (environmental friendly).
Determine the value of the bond : On 1/1/21, Anna Corp. issued 5 years bonds with a face value of $30,000 and a 16% stated rate payable semiannually. Determine the value of the bond
What different sentiment about the navel as erotic object : What different sentiment about the navel as an erotic object does the retelling explain the relationship and/or inequality between sexes?
Why does kumbera invent a back story about mother : Why does Kumbera's invent a back story about his mother? Why does the mother call it a "Fairy tale" despite its gruesome plot?
What are some key elements in motivating clients : What are some key elements in motivating clients to improve health behaviors and outcomes? What role does the family play? How can the nurse help the patient.
Write research paper on cyberbullying : Write a research paper on Cyberbullying, its impact on society or human, related federal and state laws, case studies, and prevention steps.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Determine depreciation expense for a change

Calculate how much The Donut Stop should record each year for depreciation in years 3 to 6. Determine depreciation expense for a change.

  Computation of cash collection from noteson september1 riva

computation of cash collection from notes.on september1 riva co assigns specific receivables totaling 750000 to pacific

  Merchandise by paying cash and using credit

Company pays for merchandise by paying cash and using credit. Credit purchases equal 80% of the purchases. Of those purchased on reedit the purchases are paid for as follows: 60% in the current month, 35% in the month following, and 5% in the second ..

  Explain types of reserves in statement of financial position

Explain the two types of reserves in a statement of financial position. Ver Ltd acquired a company in 2017 and noted goodwill of £10 million.

  Show effect of each transaction on the accounting equation

Show the effect of each transaction on the accounting equation. Received $14,000 cash from a previously billed customer for services performed.

  Beginning of the current fiscal year

Assuming that long-term investments totaled $3,546,000 throughout the year and that total assets were $6,737,000 at the beginning of the current fiscal year

  Prepare journal entries to record depreciation of printing

Prepare journal entries to record depreciation of the printing machine for each of the years ended 30 June 2017 and 30 June 2018 using the declining-balance

  How will total dividend be divided between common stock

The company declares a total dividend of $ 200,000. If the dividends on preferred stock are one year in arrears ( in addition to the current year), how will total dividend be divided between the common and preferred stock?

  Evaluate the current trend of companies restating statements

ACC 573- Evaluate the current trend of companies restating financial statements. Indicate the key drivers of this trend. Predict the trend over the next five years, providing support for your rationale.

  How is the federal withholding tax on this payment

Jean received a commission of $7,000 from her employer. How is the federal withholding tax on this payment calculated if she also earns semi monthly wages of $3,500?

  How to determine the total cost if yang produces units

Determine the total cost if Yang produces 10,000 units. The relevant range of operations is between 2,500 units and 10,000 units of Yin.

  How many US dollars will need to purchase Japanese yen

Chinese yuan (CNY) and 1 Japanese yen (JPY) equal to 0.0610 Chinese yuan. How many U.S. dollars will you need to purchase 1 million Japanese yen?

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