Effective method of amortization

Assignment Help Financial Accounting
Reference no: EM133254097

On January 1, 2009 Beanstalk Corporation issued 3,000 of its 9% P1,000 bonds when the prevailing rate of interest was 8%. Interest is payable annually every January 1. The bonds mature on January 1, 2014. Beanstalk paid transaction costs of P24,460 in relation to the issue of the debt instruments and in effect yield rate is 8.2%. Beanstalk uses the effective method of amortization. On December 31, 2011 balance sheet, how much would be shown as the carrying amount of the bonds payable?

Reference no: EM133254097

Questions Cloud

Assets of a medium sized municipality : IO/PO: As a portfolio manager responsible for the assets of a medium sized municipality, you get the following sales pitch from a broker you recently met: "Take
Compare and contrast the canadian healthcare system : Compare and contrast the Canadian healthcare system and the proposed Medicare for All plan currently being debated in the US. To begin, you will need
Assume constant electric field : If the electric potential measured at a given point is 80 V, what is the potential at a point 1.0 m directly west of that point. Assume constant electric field
What are free-riders : 1. How do you think accounting standards should be set? Is that the approach currently taken by the IASB?
Effective method of amortization : Beanstalk uses the effective method of amortization. On December 31, 2011 balance sheet, how much would be shown as the carrying amount of the bonds payable?
Magnitude and direction : A box or mass 30 kg is chained to the ground. What force (magnitude and direction) must the chain act on the box to keep it from moving?
Funding of economic activity : Yellow Bank borrows $25,000 through a loan with Purple Bank (transaction A) and issues $10,000 bonds to Dr Orange (transaction B). Dr Orange is a rich widow who
Composition of the sources of finance : Analyse the sources of finance for each of the two companies in 2021 as compared to 2020. Use two capital structure ratios to support your answer and provide an
What rate will the water evaporate from the pan : What rate will the water evaporate from the pan? Latent heat of vaporization (Lv) for water is 2256 J/g.

Reviews

Write a Review

Financial Accounting Questions & Answers

  What journal entry that reyenbeau will make includes credit

Wiles contacts Reyenbeau and negotiates a $300 allowance. Both companies use perpetual inventory. The journal entry that Reyenbeau will make includes credit to

  How long must you wait until your account has grown

You can earn .45 percent per month at your bank. If you deposit $2,800, how long must you wait until your account has grown to $4,500

  Discuss innovative teaching approaches in financial market

Details asymmetry problem The financial structure makes it easier to strike a mix of the two. Clearly explain these According to the structural approach.

  Which current account deficit implies that the united states

In 2012, the United States had a current account deficit. The current account deficit implies that the United States? consumed more output than it produced.

  Determine amount of factory overhead that under applied

During March, 5,750 hours were actually worked. Use this information to determine the amount of factory overhead that was (over) or under applied

  What affect does admitting meredith to the partnership

Steve have no formal profit-and-loss agreement. What affect does admitting meredith to the partnership have on the capital balances of peter and steve.

  Will you have enough money to travel in five years

Based on the $10,000 you currently have in the bank, and your grandmother's contribution, will you have enough money to travel in five years

  Evaluate credit risks of Groupon using relevant statistics

Evaluate credit risks of Groupon using relevant statistics. Evaluate Groupon's financial performance from the perspective of cash flow and net income

  Calculate the value at the end of year two

$50,000 at the end of year 1. If the payments are deposited into an account earning 4.5% per year, calculate the value at the end of year 2.

  Calculate the equity value for ocean and desert industries

Cash and debt are constant. Debt refers to interest-bearing liabilities. Calculate the 2010 equity value. Round your answer to the nearest dollar.

  What is the balance of the loan at the end of year

You have a 25-year $800,000 mortgage with a 4.5% rate of interest (compounded monthly) that you make monthly payments on. What is the balance of the loan

  What amount did stephanie have to pay

Stephanie was involved in a car accident and rushed to the emergency room. She received stitches for a facial wound and treatment for a broken finger. Under Stephanie’s PPO plan, emergency room care at a network hospital is 80 percent covered after t..

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