User Account

All Pages

Prepare the amortization table on the investment in bond

Assignment Help Accounting Basics
Reference no: EM13851522

On January 1, 2006, Jamona Corp. purchased 12% bonds, having a maturity value of $300,000, for $322,744.44. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2006, and mature January 1, 2011, with interest receivable December 31 of each year. The company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale.

The fair value of the bonds at December 31 of each year is as follows:

• 2006 - $320,500

• 2007 - $309,000

• 2008 - $308,000

• 2009 - $310,000

• 2010 - $300,000

Prepare the amortization table on the investment in bond. Prepare the entries on the investment in bond on 1/1/06, the interest revenue and the amortization of the premium on 12/31/07, and the adjustment of the investment position to fair value on 12/31/07.

Reference no: EM13851522

Questions Cloud

Prepare a monthly production schedule and a monthly summary : Prepare a monthly production schedule and a monthly summary of cash payments for January through June. Dina produced 800 units in December.
Compute a production schedule and a summary of cash payments : Compute a production schedule and a summary of cash payments for March, April, and May. Remember that production in any one month is equal to sales plus desired ending inventory minus beginning inventory.
Identify your chosen organization''s significant it challenge : From the e-Activity, identify your chosen organization's significant IT challenges, the Windows Server 2012 edition it chose to meet these challenges, and the most significant operational benefits it derived from this choice. Compare and contrast at ..
Find the self inductance of the solenoid : Find the self inductance of the solenoid -  Is the current increasing, decreasing, or holding steady? Explain.
Prepare the amortization table on the investment in bond : Prepare the amortization table on the investment in bond. Prepare the entries on the investment in bond on 1/1/06, the interest revenue and the amortization of the premium on 12/31/07.
Determine the various product attributes : Describe how a successful marketing firm might determine the various product attributes, both tangible and intangible, that constitute a product offering. Give examples to illustrate
How does the international nature of e-cmmerce : 1.) How does the international nature of e-cmmerce affect its infrastructure? 2) What do you think is the main motivation for the creation of Internet2?
Research redundant storage : Research Redundant Storage You've been hired by a company that wants to expand and improve storage on their servers. They would like to implement some form of RAID, but are unclear what the different options provide.
Server interface : Research Assignment: Server Interface The Windows Server 2012 interface has changed significantly from Server 2008 and been made to resemble Windows 8.

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