User Account

All Pages

Prepare journal entry to record their issuance by instaform

Assignment Help Accounting Basics
Reference no: EM132773596

Question - On January 1, 2021, Instaform, Inc., issued 10% bonds with a face amount of $51 million, dated January 1. The bonds mature in 2040 (20 years). The market yield for bonds of similar risk and maturity is 12%. Interest is paid semiannually.

Required -

1-a. Determine the price of the bonds at January 1, 2021.

1-b. Prepare the journal entry to record their issuance by Instaform.

2-a. Assume the market rate was 9%. Determine the price of bonds at January 1, 2021.

2-b. Assume the market rate was 9%. Prepare the journal entry to record their issuance by Instaform.

3. Assume Broadcourt Electronics purchased the entire issue in a private placement of the bonds. Using the data in requirement 2, prepare the journal entry to record the purchase by Broadcourt.

Reference no: EM132773596

Questions Cloud

What a manager should consider in the needs assessment : Training is needed to address several concerns within the organization. Address why training is needed. Identify what a manager should consider in the needs.
Prepare huron schedule of cost of goods manufactured : Prepare Huron's schedule of cost of goods manufactured for 20x2. Raw-material inventory, 12/31/x1 89,000. Purchases of raw material in 20x2 732,000
Prepare journal entry to record the transactions for horner : Prepare the journal entry to record the transactions for Horner Corporation. Purchased for cash 10,000 treasury shares at a price of $10 per share.
What makes human service field distinct from other fields : Chapter one of the course textbook discusses what makes the human service field distinct from other fields, such as social work and counseling psychology.
Prepare journal entry to record their issuance by instaform : The bonds mature in 2040 (20 years). Assume the market rate was 9%. Prepare the journal entry to record their issuance by Instaform
Define issues that will be researched leading to action plan : This phase introduces the health care organization of the research/case analysis, and identifies the problems/issues that will be researched leading.
Compute the effective annual return for Avicorp : The debt has semi-annual coupons, the next coupon is due in six months, If Avicorp faces a 40% tax rate, what is its after-tax cost of debt?
Briefly summarize the key macroeconomic issues : Briefly summarize the key macroeconomic issues/challenges based on your review of SINGAPORE''s macroeconomic framework as of end-2020
Create a general description of the organization : Conduct research of a company or organization of your choosing. Use all of the tools necessary to conduct an evaluation of the vision and mission.

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