How do find what the effective interest rate is

Assignment Help Financial Accounting
Reference no: EM132684636

Problem 1: In accordance to IAS 2 the historical cost of inventories does not include:

1) Purchasing costs;

2) Selling expenses;

3) Conversion costs;

4) Other costs incurred in bringing inventories to their present location and condition.

Problem 2: On 1 January 2020, Adidas Ltd issued a bond with a nominal value of $500 000 and a coupon rate of 8% (annually in arrears) when the market rate was also 8%. The bond will be redeemed at a 10% premium above nominal value on 31 December 2022. Transaction costs paid by Adidas Ltd amounted to $30 000. The effective interest rate is:

1) 8,00%;

2) 10,99%;

3) 13,48%;

4) 10,43%.

Reference no: EM132684636

Questions Cloud

Describe an example of a business ethics problem : Analyze and describe an example of a business ethics problem, and how to deal with such a problem, what actions would a manager take?
Determine the direct materials cost per equivalent unit : Pacific Products Inc. completed and transferred 55,000 particle board units of production. Determine the direct materials cost per equivalent unit
What nike ltd will recognize : What Nike Ltd will recognize? Nike Ltd sold goods to a customer for a total consideration of $181 500, payable 24 months after delivery.
What does the federal trade commission mean : What does the Federal trade commission mean when it direct consumers to deter, detect, and defend against identity theft?
How do find what the effective interest rate is : 10% premium above nominal value on 31 December 2022. Transaction costs paid by Adidas Ltd amounted to $30 000. The effective interest rate is
Determine the equivalent units of production for cereal : Assume that once a box is filled with cereal, Determine the equivalent units of production for cereal, boxes, and conversion costs for January
Decide the direction of your future career : Throughout this course, you developed a knowledge base in psychology that may help you decide the direction of your future career.
Describe three kinds of operating decisions : Describe three kinds of operating decisions that can be made when analyzing financial statements and why such analysis is important when making each decision.
Determine direct materials and conversion equivalent units : If all direct materials are placed in process at beginning of production, determine the direct materials and conversion equivalent units of production for June

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare a value added statement for the year

Prepare a value added statement for the year ended on 31-3-2012 and also reconciliation and GVA - Sales represents net sales after adjusting discount and return

  What would be the operating profit or loss associated

What would be the operating profit or loss associated with the production and sale of 494 swim trunks? The Poseidon Swim COmpany produces swim trunks.

  Explain how the magnetic audit trail functions

Explain how the magnetic audit trail functions. - Are large batch sizes preferable to small batch sizes? - Discuss why an understanding of legacy system technologies is of some importance to auditors.

  Sinking fund payments for issue of debenturescarter

sinking fund payments for issue of debenturescarter manufacturing company has outstanding an issue of 9 percent

  Calculate the average per share amount of the preferred

Calculate the average per share amount of the preferred and common shares at January 1, 2021. (Round answers to 2 decimal places, e.g. 52.75.)

  Make trial balance as of the end of october

Make trial balance as of the end of October. Make journal entries to record each of the following transactions for Business. Open ledger accounts.

  Find what price should be charged

Fixed cost at a volume of $50,000 units. If the company marks up total cos by 0.46, what price should be charged if 58,000 units are expected to be sold?

  Do agree with abc ltd financial reporting choice

ABC Ltd is listed on the Imaginary, Do you agree with ABC Ltd's financial reporting choice? If not, what adjustments will you make to the financial statements?

  Receivable will be uncollectible

Assume instead that Rogala uses the aging of accounts receivable method and estimates that $82 of its Accounts Receivable will be uncollectible

  Produce an income statement using absorption costing

Posey Manufacturing has the following cost information available for the most current year. Direct Material $6.00 per unit Direct Labor 4.00 per unit Variable man overhead 2.00 per unit Variable S&A costs 1.00 per unit Fix man overhead 80,000 Fixed S..

  Return on assets and asset turnover

Hill Co. reported 2013 Net Sales of $1,750,000, Net Income of $500,000, Total Assets at the beginning of the year of $1,000,000, and Total Assets at the end of the year of $1,200,000. Determine the Return on Assets and Asset Turnover for Hill Co.

  What amount will dudas report the bonds on december

On January 1, 20X4, Dudas Accounting Corp. bought $1,000,000, At what amount will Dudas report the bonds on its December 20X4 statement of financial position?

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