User Account

All Pages

How much is the interest income recognized

Assignment Help Accounting Basics
Reference no: EM132784245

On January 1, 20x1, Kevin Co. acquired 12%, P4,000,000 bonds for P4,198,948. The principal is due  on December 31, 20x3 but interest is made annually starting December 31, 20x1. The effective  interest rate on the bonds is 10%.

Problem 1: How much is the interest income recognized in 20x1?

a. 419,895     c. 407,273
b. 413,884     d. 480,000

Reference no: EM132784245

Questions Cloud

Liquidation value is the net amount- true or false : Liquidation Value is the net amount that would be realized if the business is terminated and the assets are sold piecemeal- True or False
Valuation includes the use of forecasts - true or false : Valuation includes the use of forecasts to come up with reasonable estimate of value of an entity's assets or its equity- True or False
Describe current healthcare issue : Choose a healthcare organization which you wish to conduct extensive research - Describe current healthcare issue(s) being addressed by the organization
What is transfer price that believe letgo division charge : What is the transfer price that you believe Letgo Division should charge if overall company-operating income is to be maximized?
How much is the interest income recognized : How much is the interest income recognized in 20x1? The principal is due on December 31, 20x3 but interest is made annually starting December
Evaluate approaches to change management : Evaluate approaches to change management and Develop and communicate a change management plan - Summary of the chosen organization and the major change plan
Which the entry to record the investment includes : The securities are to be held until maturity to collect the contractual cash flows. The entry to record the investment includes
Which investments in debt securities that are classified : According to PFRS 9 Financial Instruments, investments in debt securities that are classified at amortized cost are initially measured at
What is the present value of the expected future cash flow : What is the present value of the expected future cash flow as of december 31,2016? On January 1, 2015, Nickel Company loaned Copper Company amounting

Reviews

Write a Review

Accounting Basics Questions & Answers

  How would you respond to jared helm request

The Eclipse Video Store Co. is owned and operated by Jared Helms. How would you respond to Jared Helm's request

  In its first month of operations cerretti company made

in its first month of operations cerretti company made three purchases of merchandise in the following sequence 1 300

  Determine the amount of additional funds www will require

Suppose WWW's financial consultants report, Determine the amount of additional funds WWW will require next year if sales grow by 20%.

  Suppose you could by a piece of software that is projected

suppose you could by a piece of software that is projected to increase profits by 5000year. the software costs 12000

  Hanson company is constructing a building construction

hanson company is constructing a building. construction began on february 1 and was completed on december 31.

  How should Marvin Corporation record transactions

On March 1, year 1, Marvin Corporation promises to unconditionally transfer a building that cost $125,000. How should Marvin Corporation record transactions

  What will a close out sale at year end from one of a

what will a close out sale at year end from one of a companys main suppliers do to the companys balance sheet?what will

  Which of the following items will usually not be disclosed

1. the closing entry for an expense account would a. debit income summary and credit the expense b. debit the expense

  Explain how MMPL will recognise the revenue

Explain how MMPL will recognise the revenue arising from Annie's purchase of this promotion package using the five-step model from FRS 115 Revenue

  Significance of the reporting entity concept in accounting

Accounting for Corporate Structure (ACCT 603). In your discussion you should specifically address the following issues: The significance of the reporting entity concept in accounting for business combinations

  Atlas trucking incurred the following costs during 2013

atlas trucking incurred the following costs during 2013. please prepare the journal entry to record the costs1spent

  Calculate the issue price of the bonds

Interest is to be paid semiannually. Calculate the issue price of the bonds if the market interest rate was: 14%

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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