Reference no: EM133130240
Question - On January 1, 2020, Aumont Company sold 12% bonds having a maturity value of $500,000 for $537,907.37, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Aumont Company allocates interest and unamortized discount or premium on the effective interest basis.
a. Prepare the journal entry at the date of the bond issuance.
b. Prepare a schedule of interest expense and bond amortization for 2020-2022.
c. Prepare the journal entry to record the interest payment and the amortization for 2020.
d. Prepare the journal entry to record the interest payment and the amortization for 2022.
e) The CEO of the Aumont company calls you for a meeting because he is very concerned about two issues. 1) He is worried that he needs to raise at least 620,000 dollars for the new manufacturing facility that will be financed with this bond issuance. Please specify specific recommendations to modify the bond indenture so that the necessary funds can be raised. 2) He is very worried about the interest expense that will hit the financial statements. Please outline and explain how you can use financial statement information and your expertise in lowering the anxiety level of the CEO. Please think about ratios and interest capitalization rules given that the proceeds of the bond will be used for a qualifying asset.
Key elements of an e-commerce business model
: 1. What are the key elements of an e-commerce business model ?
|
Shift in reimbursement strategy
: -The Centers for Medicare and Medicaid Services (CMS) implemented a new approach to reimbursement starting in 2011 called value-based purchasing. The goal was t
|
Explain the key requirements of taxation legislation
: Explain (with examples) the key requirements of taxation legislation relating to deductions, allowances and charges that a financial manager should be aware
|
Creating rules for a government
: Write a paragraph about how do you think creating rules for a government to follow could help meet that goal
|
Prepare the journal entry at the date of the bond issuance
: Aumont Company sold 12% bonds having a maturity value of $500,000 for $537,907.37, Prepare the journal entry at the date of the bond issuance
|
Discuss three major challenges in environmental
: Read the following article: Bretschger, L., & Pittel, K. (2020). Twenty key challenges in environmental and resource economics. Environmental and Resource
|
Discuss link between scarcity-choice and opportunity cost
: Based on your study of the material presented in chapters one and two of your text, discuss the link between scarcity, choice, and opportunity cost (please incl
|
Draw the resulting graphs
: a. Explain and illustrate how this might have occurred via changes only to the demand curve; i.e., come up with a plausible reason and draw the resulting graphs
|
Calculate the maximum class cca
: Further leasehold improvements were made to the warehouse in 2021 at a cost of $104,000. Calculate the maximum Class 13 CCA for 2021
|