Reference no: EM132885251
Zooey Inc. issued 6% bonds with a face of $840,000,000 for $776,000,000 cash on January 1, 2021, when the market effective rate was 8%. Zooey pays interest semiannually on June 30 and December 31, records interest at the effective rate, and elected the option to report these bonds at their fair value at year-end, 12/31. There was no change in rates during the first 6 months of 2021. On December 31, 2021, the fair value of the bonds was $792,000,000, and $1,000,000 of the increase in fair value was due to a change in the general (risk-free) rate of interest.
Required:
Problem 1. Record the first interest payment on June 30, 2021. Round your answer the the nearest $.
Problem 2. Record the second interest payment on on December 31, 2021. Round your answer to the nearest $.
Problem 3. Record the fair value adjustment on December 31, 2021.
|
What is the cost of land to be recorded by Duane
: Duane also spent $7,500 on clearing costs to prepare the land for use. What is the cost of land to be recorded by Duane
|
|
Foundation for ongoing growth-development as professional
: Reflective practice is crucial in education and becomes the foundation for ongoing growth and development as a professional.
|
|
Prepare the year-end journal entries to record income taxes
: The Summerlin Company reported pretax accounting income, Prepare the year-end journal entries to record income taxes for the years 2021-2024.
|
|
How much should Yuki capitalize as the cost of the system
: The old system had a book value of $9,000 and a fair value of $1,000. How much should Yuki capitalize as the cost of the new refrigeration system
|
|
Record the first interest payment on june
: Record the first interest payment on June 30, 2021. Zooey Inc. issued 6% bonds with a face of $840,000,000 for $776,000,000 cash on January 1, 2021.
|
|
How much should be charged to repairs and maintenance
: Overhaul of machinery that is expected to extend its useful life for another 2 years 6,000. How much should be charged to repairs and maintenance
|
|
How would you address a wide range of issues in your groups
: Describe the skills or attributes you believe are necessary to be an outstanding teacher. How would you address a wide range of issues in your groups?
|
|
What is the total amount of interest costs to be capitalized
: Assuming that the effect of interest capitalization is material, what is the total amount of interest costs to be capitalized
|
|
What are the pseudoprobabilities of the up and down movement
: What are the pseudoprobabilities of the up and down movements in the stock price? What are the payoffs from the call in each state of the world?
|