User Account

All Pages

Record journal entries for the issuance of the bond

Assignment Help Accounting Basics
Reference no: EM132649349

Question - On September 1, 2016, Schumpeter Conglomerates sold $250,000,000 20-year bonds with a coupon rate of 12% paid semi-annually. The market rate for a security of similar risk and maturity is 10%. Schumpeter Conglomerates hired Ivanov's Finance Shack to issue the securities at a cost of $750,000. Attached to each $100,000 bond are five detachable warrants allowing for the purchase of one hundred shares of no-par common stock for $25 per share. Each warrant is estimated to have a market value of $20. Record journal entries for the issuance of the bond, the first two interest payments, and any required adjusting entries for the fiscal year ending December 31, 2016.

Reference no: EM132649349

Questions Cloud

Optimal labor supply and consumption for teenager : What is the optimal labor supply and consumption for this teenager?
What markup percentage would apple need to use : What markup percentage would Apple need to use to maintain its $840 sales price? (Round answer to 1 decimal place, e.g. 25.2%.)
What arguments can be raised against the politicalization : What arguments can be raised against the politicalization of accounting standard setting? (CMA adapted)
Find what was the cost to make : According to a March 3, 2012, EETimes.com article, Find what was the cost to make it, assuming 70% gross margin? (Round answer to 2 decimal places, e.g. 0.38.)
Record journal entries for the issuance of the bond : Record journal entries for the issuance of the bond, the first two interest payments, and any required adjusting entries for the fiscal year ending December
How would allocate the cost of the trip among the four : How would you allocate the cost of the trip among the four of you? Discuss the allocation possibilities and how you would make a decision
How might you use the information in future in workforce : Choose three of the above topics and reflect how they have impacted you as a leader and how might you use this information in the future in and out of the
Discuss on the emerging technologies in auditing profession : Discuss on the emerging technologies in auditing profession and identify how it would benefit the auditing profession
Compare the overhead estimates per product : Compare the overhead estimates per product. Summarizes the direct labor, overhead, and direct material costs associated with these products Rubrics'

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