On june 1 400000 of bonds were purchased as a long-term

Assignment Help Accounting Basics

Reference no: EM13574105

On June 1 $400,000 of bonds were purchased as a long-term investment at 97.5 and 500 was paid as the brokerage commission. If the bonds bear interest at 12%, which is paid semi-annually on January 1 and July 1, what is the total cost to be debited to the investment account?

Reference no: EM13574105

Questions Cloud

An investor purchased 500 shares of common stock 25 par : an investor purchased 500 shares of common stock 25 par for 21750. subsequently 100 shares were sold for 47.50 per

The galaxy co an accrual basis taxpayer allows its : 1. what statement is not true with respect to temporary regulations?a. may be cited as precedent.b. issued as proposed

Raw land at the edge of urban development that lacks the : raw land at the edge of urban development that lacks the necessary permits for development is in general the most risky

Explain why an american option is always worth at least as : explain why an american option is always worth at least as much as a european option on the same asset with the same

On june 1 400000 of bonds were purchased as a long-term : on june 1 400000 of bonds were purchased as a long-term investment at 97.5 and 500 was paid as the brokerage

Define margin of safety as it applies to debt contracts and : debt contracts usually place restrictions on the ability of a company to deploy resources and to pursue business

Many banks pitch home equity loans as a way to finance a : many banks pitch home equity loans as a way to finance a vacation. is using the equity in ones house to finance a

Determining core income is an important first step to : determining core income is an important first step to estimating permanent income. explain. what adjustments to net

The bonds make semiannual coupon payments at a rate of 84 : trevor price bought 10-year bonds issued by harvest foods five years ago for 950.97. the bonds make semiannual coupon

Reviews

Write a Review

Required(*) Message

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

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

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

Accounting problems

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.

Theory of interest - term structure of interest rates

Term Structure of Interest Rates

Write a report on internal controls

Write a report on Internal Controls

Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

Liquidity and profitability

Distinguish between liquidity and profitability.

What is the expected risk premium on the portfolio

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 and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

Capm and venture capital

CAPM and Venture Capital

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

User Account

All Pages