Solution-Prepare the journal entry to record revenue

Prepare the journal entry to record revenue

Reference no: EM131006320

1. On January 1, a company purchased 3%, 20-year corporate bonds for $69,033,776 as an investment. The bonds have a face amount of $80 million and are priced to yield 4%. Interest is paid semiannually. Prepare the journal entry to record revenue at the effective interest rate on December 31, the second interest payment date.

Reference no: EM131006320

Questions Cloud

Prepare the journal entry to record the issuance of the bond : Hoffman Corporation issued $60 million of 5%, 20-year bonds at 102. Each of the 60,000 bonds was convertible into one share of $1 par common stock. Prepare the journal entry to record the issuance of the bonds.

Derive this firms short-run supply function : A firm production function is given by q = f(k,l) = k.l^1/2. Consider a short-run situation where the level of capital is fixed at k1. This firm’s profit function is of the form Π(p,v,w,k1) = a(w^b)(p^c)(k1^d) – vk1, where factor a is equal to [a]. U..

What is opportunity cost of baking : Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Joey takes four hours to bake 1 loaf of bread and four hours to make 1 pie. What is Rachel’s opportunit..

What happens to the money supply and the interest rate : Imagine that you run the central bank in a large open economy with a floating exchange rate. Your goal is to stabilize income, and you adjust the money supply accordingly. Under your policy, what happens to the money supply, the interest rate, the ex..

Prepare the journal entry to record revenue : Prepare the journal entry to record revenue at the effective interest rate on December 31, the second interest payment date.

What annual rate of return is the investment offering : You are told that if you invest $11,000 per year for 23 years (all payments made at the end of each year) you will have accumulated $366,000 at the end of the period. What annual rate of return is the investment offering?

How much heater power peis required when desired dryer air : .If the convection heat transfer coefficient between the air and the exposed switch surface of 30 mm2 is 25 W/m2 .K, how much heater power Peis required when the desired dryer air temperature is T8 = 50°C?

Unemployment benefits should effect the wage accepted : In a world of job-finding and search, unemployment benefits should effect the wage accepted, but not the length of time spent searching for a job. The number of monthly separations between workers and firms is about 200,000, equal to a decent month’s..

What is the total supply of the fringe : An industry consists of a dominant firm with costs C(Qd) = Qd and 8 identical fringe firms, each with costs c(q) = 1 + q^2. Market demand is Q = 20 - p. What is the supply schedule for a fringe firm in the long run? Sketch the supply. (You would need..

User Account

All Pages

Prepare the journal entry to record revenue

Reference no: EM131006320

Reference no: EM131006320

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT