Present an amortization table indicating amount of interest

Assignment Help Financial Accounting
Reference no: EM132920151

On May 1, 2020, Blackhawks Industries Ltd. issued $ 2,000,000, 10% bonds and received cash proceeds of $ 2,243,313. The bonds pay interest semi-annually on May 1 and November 1. The maturity date on these bonds is November 1, 2028. Blackhawks uses the effective interest method of amortizing bond discounts and premiums. The bonds were sold to yield an effective interest rate of 8%.

Instructions

Problem a) Based on the data provided, verify the yield rate using a Financial Calculator or Excel or PV Tables.

Problem b) With proper headings, present an amortization table, indicating the amount of interest expense, interest paid, discount or premium amortized and balance of the carrying value from issuance date to May 1, 2022, while the above-mentioned bonds were outstanding. Show calculations and round all values to the nearest dollar.

Reference no: EM132920151

Questions Cloud

What is the present value of the annuity : What is the present value of the following annuity - $2,698 every half year at the beginning of the period for the next 8 years
How much the preferred and common shareholders will receive : Calculate how much the preferred and common shareholders will receive. 40,000, $ 0.80, no par value preferred shares $ 400,000
Prepare a spreadsheet to determine all the pension items : Current Service cost is $196,000 for 2019 and $199,000 for 2020. Prepare a spreadsheet to determine all the pension items for both 2019 and 2020
Evaluate the benefits of promotional activities : The organisation you work for has been promoting their main service completing tax returns via TV advertisements. How would you analyse costs and time lines to
Present an amortization table indicating amount of interest : With proper headings, present an amortization table, indicating the amount of interest expense, interest paid, discount or premium amortized and balance
Swot analysis of a company : Highly Brill Leisure Center (a Sports Facility) has hired you to help them with their marketing decision making.
Prepare the necessary journal entries for abc : Prepare the entry to record bad debt expense assuming that in transaction #4, $4,000 of A/R had been written off instead of $1,500.
Discuss the elements used in the location of us bistal : Discuss the elements used in the location of US Bistal. Please use 12 elements to explain your answer Subject
What is corporate raiding : What is corporate raiding and how can it sometimes involve mergers and acquisitions and insider trading. Consider the scandal that involved Michael Milken who w

Reviews

Write a Review

Financial Accounting Questions & Answers

  Discuss problems of measurement in context of present aasb

BUACC2606 FINANCIAL ACCOUNTING RESEARCH ASSIGNMENT. Discuss the problems of measurement in the context of the present AASB / IASB standards and conceptual framework using your selected annual report to provide examples

  Discussed the fundamental characteristics

ACCT6007 Financial Accounting Theory & Practice Assignment. Discussed the fundamental characteristics of financial information in the disclosures

  Suppose a service organization has a mixed cost function

Suppose a service organization has a mixed cost function. When it experiences a 5% increase in sales, income increases by more than 5%. Explain why this occurs.

  What is the project initial investment outlay

The project will also require an initial $244,412 investment in net working capital. What is the project's initial investment outlay? Round the answer

  What is warrens taxable income and total liability

Warren age 7, is claimed as a dependent by his father, As a result of Warrens shrewd investing during 2015, he received dividend income of $2500 adn earns $6500 from a part time lemonade stand. Warren's father told him when he started investing that ..

  What is the amount of the refund owed to customer

What is the amount of the refund owed to the customer? Journalize the entries made by the seller to record the return and the refund. If an amount box does not require an entry, leave it blank.

  Record these transactions in the cash payments journal

Record these transactions in the cash payments journal - Jun 4 Paid amount owing $600 (Invoice #1343) to JR Depot (Cheque #195)

  Steps to be successful in the event of a financial crisis

In a financial crisis, like the government shutdown or recession, what can be recommended to management of large scale platforms like the VA(Veterans Affairs)

  Explain whether you agree or disagree with court decision

The joint bankruptcy filing of GGP and most of its SPEs has apparently allowed GGP to successfully reorganize much of its debt and repay all of its obligations, while retaining substantial value for its equity holders. Explain whether you agree or..

  What level of additional sales? per year

What level of additional sales? (above the $10.00 million expected for the? XC-750) per year in those years would justify purchasing the larger? machine?

  What is the maximum price that would be willing to pay

If your required rate of return is 12 percent, what is the maximum price that you would be willing to pay for this company's stock?

  Prepare the journal entry needed for the january redemptions

Prepare the journal entry needed for the January 2021 redemptions. Prepare the journal entry needed for the February 2021 redemptions

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd