Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Osage Corporation issued $600,000, 7%, 10-year bonds on January 1, 2010, for $559,740. This price resulted in an effective interest rate of 8% on the bonds. Interest is payable annually on January 1. Osage uses the effective-interest method to amortize bond premium or discount. Prepare the journal entries to record: (Round answers to 0 decimal places, e.g. 2,500. List multiple debit/credit entries from largest to smallest amount, e.g. 10, 5, 2.) (a) The issuance of the bonds. Date Account/Description Debit Credit Jan. 1 CashAccounts receivableBonds payableMortgage note payableDiscount on bonds payableBond interest payablePremium on bonds payableBond interest expenseLoss on bond redemptionGain on bond redemption
Discount on bonds payableCashAccounts receivableBonds payableMortgage note payableBond interest payablePremium on bonds payableBond interest expenseLoss on bond redemptionGain on bond redemption
Bonds payableCashAccounts receivableMortgage note payableDiscount on bonds payableBond interest payablePremium on bonds payableBond interest expenseLoss on bond redemptionGain on bond redemption (b) The accrual of interest and the discount amortization on December 31, 2010. Date Account/Description Debit Credit Dec. 31 Bond interest expenseCashAccounts receivableBonds payableMortgage note payableDiscount on bonds payableBond interest payablePremium on bonds payableLoss on bond redemptionGain on bond redemption Bond interest payableCashAccounts receivableBonds payableMortgage note payableDiscount on bonds payablePremium on bonds payableBond interest expenseLoss on bond redemptionGain on bond redemption Discount on bonds payableCashAccounts receivableBonds payableMortgage note payableBond interest payablePremium on bonds payableBond interest expenseLoss on bond redemptionGain on bond redemption (c) The payment of interest on January 1, 2011. Date Account/Description Debit Credit Jan. 1 Bond interest payableCashAccounts receivableBonds payableMortgage note payableDiscount on bonds payablePremium on bonds payableBond interest expenseLoss on bond redemptionGain on bond redemption CashAccounts receivableBonds payableMortgage note payableDiscount on bonds payableBond interest payablePremium on bonds payableBond interest expenseLoss on bond redemptionGain on bond redemption
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd