User Account

All Pages

Prepare the journal entry to record the retirement of bond

Assignment Help Accounting Basics
Reference no: EM133137429

Question - ABC Company issued an $8 million bond at a discount five years ago. The current carrying amount of the bond is $7.70 million. The company now has excess cash and decides to retire the bond. The bond is callable at 121 percent of its face value.

Required - Prepare the journal entry to record the retirement of the bond, assuming that the company (a) uses a discount account and (b) does not use a discount account.

Reference no: EM133137429

Questions Cloud

Conducting an effective needs assessment : Focus on two to three "Basic Rules" and dive deeper into the rules by discussing why the concepts are important to conducting an effective needs assessment.
Reduce the potential for conflict : Describe 3 things that the organization (any) could do to improve its work environment and reduce the potential for conflict. (250 words minimum)
Types of performance rating errors : 1. What are some types of performance rating errors and why do managers make them?
Explain revenue cycle auditor : As a revenue cycle auditor, explain how you will monitor compliance, denials, resubmitted claims, appeals for denied claims, and posting of late charges.
Prepare the journal entry to record the retirement of bond : Prepare the journal entry to record the retirement of the bond, assuming that the company (a) uses a discount account and (b) does not use a discount account
Emergency medical treatment and active labor act : Specify the importance of continuing to evaluate patients, as stipulated by the Emergency Medical Treatment and Active Labor Act (EMTALA), during the emergency.
Prepare a journal entry to record the payment of interest : Interest payment dates June 30 and December 31. Prepare a journal entry to record the payment of interest and amortization of the discount on December 31, 2019
Paper on intelligent task scheduling mechanism : An Intelligent Task Scheduling Mechanism for Autonomous Vehicles via Deep Learning
Should you purchase the bond at the current market price : Bond valuation - The 15-year $1,000 par bonds of Vail Inc. pay 13 percent interest. Should you purchase the bond at the current market price

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