Financial statement effects of bond transactions

Assignment Help Managerial Accounting

Reference no: EM13891519

Analyzing and Reporting Financial Statement Effects of Bond Transactions

On January 1, 2014, Trueman Corporation issued $700,000 of 20-year, 11% bonds for $647,338, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 and December 31.

(a) Confirm the bond issue price. (Use a financial calculator or Excel to compute. Round answers to the nearest whole number.)

Present value of principal repayment	=$Answer
Present value of interest payments	=$Answer
Selling price of bonds	=$ 647,338

(b) Indicate the financial statement effects using the template for (1) bond issuance, (2) semiannual interest payment and discount amortization on June 30, 2014, and (3) semiannual interest payment and discount amortization on December 31, 2014. (Round answers to the nearest whole number.)

(1)	Answer	Answer	Answer	Answer	Answer
(2)	Answer	Answer	Answer 0.00 points out of 1.00	Answer	Answer
(3)	Answer	Answer	Answer	Answer	Answer

Answer	Answer	Answer
Answer	Answer	Answer
Answer	Answer	Answer

Reference no: EM13891519

Questions Cloud

What is the difference between animation and transition : What is the difference between animation and transition as it relates to a PowerPoint presentation? Review the different handout page formats.

General goal for a topic for a certain audience : General goal for a topic for a certain audience

Perform a web of science search on rapid thermal processing : Perform a "web of science" search on rapid thermal processing. List how many papers were published. Figure out how to narrow the search based on a specific sub-topic that is of interest to you

What are the different types of rocks : What are the different types of rocks and explain its composition with its use in brief

Financial statement effects of bond transactions : Analyzing and Reporting Financial Statement Effects of Bond Transactions On January 1, 2014, Trueman Corporation issued $700,000 of 20-year, 11% bonds for $647,338, yielding a market (yield) rate of 12%. Interest is payable semiannually on June 30 an..

Determine modulus of elasticity and poisson ratio for metal : A tensile load of 220 KN is applied to a round metal bar with a diameter of 16 mm and a gage length of 50 mm. Determine the modulus ofelasticity and Poisson's ratio for this metal

Possess a level of craftsmanship lacking : Old buildings can be terrific structures. In some cases, they may possess a level of craftsmanship lacking in many modern constructions. In others, they may possess an important historical significance. However, if the buildings were constructed b..

Compute the seasonality index for each month of the year : After estimating the forecast for year 6, compute the seasonality index for each month of the year and estimate the monthly demand for year 6.

Find the proportion of all graduate students at university : Find the proportion of all graduate students at this university with an undergraduate major in mathematics at the 90% confidence level.

User Account

All Pages