User Account

All Pages

Prepare a bond amortization schedule for the first year

Assignment Help Accounting Basics
Reference no: EM132870202

Question - On January 1, 2016, the Q-Ball Company issued $200,000 bonds with an 8% stated interest rate. Each $1,000 bonds pay interest on June 30 and December 31. The bonds mature on December 31, 2025.

Required -

a. Assume the bonds were sold for $175,075.58 to yield 10%. Prepare a bond amortization schedule for the first year of the bond life using the effective interest method. Round all calculations to the nearest dollar.

b. Prepare the journal entry for paying the interest on December 31, 2016.

c. Why did these bonds originally sell at a discount?

Reference no: EM132870202

Questions Cloud

Characteristics regarding servant leadership : What traits or characteristics regarding servant leadership appeal to you the most? Be sure to use resources to develop and support your discussion.
Prepare entries in journal : Prepare entries in journal form without explanations to record the bond issue on January 1, 2010, and payments of interest and amortization of discount on June
Develop a segmentation scheme for a new pizza shop : 1. Develop a segmentation scheme for a new pizza shop located two blocks from campus.
Prepare the journal entries to record the related interest : The company exercised the call option and retired the bonds. Prepare the journal entries to record the related interest and retirement
Prepare a bond amortization schedule for the first year : Prepare a bond amortization schedule for the first year of the bond life using the effective interest method. Round all calculations to the nearest dollar
Prepare the journal entries for the acquisition of the site : Prepare the journal entries for the acquisition of the site and the asset retirement obligation. The effective interest rate is 7%
Calculate the monthly and annual depreciation expense : Calculate the monthly and annual depreciation expense. What is the accumulated depreciation in year 6, and the net book value for the equipment
How many dozen notepads should STHDS order each time : Based on the lowest total annual cost (ordering plus holding plus acquisition cost), how many dozen notepads should STHDS order each time
Structuring the unstructured startup : Adventure Tours is out to disrupt the travel industry. It offers "authentic" small group adventures around cultural immersion, ecology tourism, spiritual wellne

Reviews

Write a Review

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

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