Reference no: EM132288991
Question - Grider Industries, Inc. issued $500,000 of 10% bonds on November 1, 2016 and received cash totaling $472,089.50. The bonds pay interest semiannually on May 1 and November 1 of each year and are to yield 12%. The maturity date on the bonds is May 1, 2020. The firm uses the effective-interest method of amortizing discounts and premiums. The bonds were sold to yield an effective interest rate of 12%.
Instructions:
Prepare for yourself an amortization Schedule for this bond issue. From that schedule - Provide the below Journal Entries: (show your calculations)
1. November 1, 2016 - Issuance of the Bond Journal Entry.
2. December 31, 2016 - End of Year Adjusting Journal Entry.
3. May 1, 2017 - Entry to pay the Semiannual Interest Payment (be sure to consider your 12/31/16 Adjusting entry and effective interest method amortization).
4. November 1, 2017 - Entry to pay the Semiannual Interest Payment.
|
How much will you have 10 years later
: Beginning today, you will be investing $5,000 per year for the next 10 years in an account earning 8% quarterly. How much will you have 10 years later?
|
|
What is beta of stock
: A stock has an expected return of 12.4 percent, the risk-free rate is 6.5 percent, and the market, risk premium is 10 percent. What must the beta of this stock
|
|
What is the economic basis for our current healthcare system
: What is the economic basis for our current healthcare system, including organization and access, as it stands now?
|
|
What is the most that you would pay for the stock
: If the required rate of return is 9%, what is the most that you would pay for the stock?
|
|
Prepare for yourself an amortization schedule for bond issue
: Prepare for yourself an amortization Schedule for this bond issue. From that schedule - Provide the below Journal Entries: (show your calculations)
|
|
How much should the investor pay for the stock
: The stock will pay a $1.75 dividend and should sell for $42. If the required rate of return is 12%, how much should the investor pay for the stock?
|
|
Would you make the? investment
: Would you make the? investment? Why or why? not? ?(Select the best choice? below.)
|
|
What is Alpha Company general journal entries
: What is Alpha Company's general journal entries to record the purchase and payment for inventory purchased from its Japanese vendor
|
|
What is the current stock price
: A stock just paid a dividend of D0 = $0.6. The required rate of return is rs = 15.5%, and the constant growth rate is g = 7.3%. What is the current stock price?
|