Reference no: EM131214314
Premium Amortization
On the first day of the fiscal year, a company issues a $7,100,000, 7%, 9-year bond that pays semiannual interest of $248,500 ($7,100,000 × 7% × ½), receiving cash of $8,696,652.
Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. I just need to know where to DR or CR the Interest expense and how much and same with the premium on bonds payable.
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Bond investment transactions
: Journalize the entries to record the following selected bond investment transactions for Olson Products: For a compound transaction, if an amount box does not require an entry, leave it blank.
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Statute of frauds and refuses to sell the laptop to buyer
: Seller orally agrees to sell his laptop to Buyer for $600. Buyer tenders the purchase price but Seller asserts the Statute of Frauds and refuses to sell the laptop to Buyer.
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The beam fell off the truck hitting another vehicle
: Henry Jacobs went to Home Lumber Center where he bought a 12 foot beam weighing 100 pounds. In the lumberyard, a store employee used a forklift to place the beam in the back of Jacobs' truck. Since the beam stuck out 4 feet, the employee flagged the ..
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Price which contained sign and return form
: Jack's Ice Cream orally agreed to sell ice cream to Town Field Stadium for $5000. Jack's sent Town Field an order confirmation form that stated the goods, quantity, and price which contained a "sign and return" form. Town Field did not sign and retur..
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Premium amortization
: Journalize the first interest payment and the amortization of the related bond premium. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. I just need to know where to DR or CR the Interest expense and how much a..
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What is the total value of the cash flows of the firm
: A project’s annual operating cash flows for the next five years are $120,000, $150,000, $180,000, $200,000, and $220,000. Assuming a discount rate of 12% and a terminal growth rate of 3%, What is the terminal value for assessing the cash flows after ..
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Estimate the company real cost of capital
: You are considering a new project, which costs $600,000 and is expected to have the following nominal cash flows of $200,000, $220,000, $220,000, $200,000, and $180,000 in years 1 through 5. The company’s nominal cost of capital is 10%. The expected ..
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Calculate cash flows related to working capital
: Mary is considering opening a grocery store. The store is expected to generate revenues of $200,000, $250,000, $260,000, $250,000 and $200,000 during year 1, year 2, year 3, year 4, and year 5 respectively. Mary plans to operate the store for 5 years..
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Find amount of capital gain realized from assets liquidation
: An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $350,000 and will be sold for $50,000 at the end of the project. Assume tax rate is 35%. Find the asset’s book value at the time ..
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