Record the issuance of the bonds

Assignment Help Accounting Basics
Reference no: EM132484462

Question - On September 1, 2021, Bear Corporation issued $ 1,000,000, 6%, 10-year bonds. Interest is payable annually with the first payment due on September 1, 2022.

a) For each of the following market rate assumptions, identify whether Bear would issue the bonds at face value, at a discount, or at a premium: (1) 5%, (2) 6%, and (3) 7%.

b) Provide the appropriate journal entry on September 1, 2021 to record the issuance of the bonds if the market rate of interest is 7%. Round your answer to the nearest dollar.

c) Assuming Bear has a December 31 year end, prepare the year-end adjusting entry to account for accrued interest on the bonds.

Reference no: EM132484462

Questions Cloud

Calculate the prepaid or property taxes payable : Instructions - Calculate the prepaid or property taxes payable that City Wok Inc. will report on its balance sheet if City Wok Inc.'s year end
What is the slope of the demand curve drawn : Use the price and quantity data above to draw the Demand curve. What is the slope of the demand curve drawn? Is the slope constant?
Prepare journal entries that summarize the sales : Actual warranty expenditures for monitor A were $ 4,000. Prepare journal entries that summarize the sales and any aspects of the warranty for 2021
Why would need a systematic process : Describe the communication processes you will use to ensure there are communicated systematically to staff and relevant personal.
Record the issuance of the bonds : Provide the appropriate journal entry on September 1, 2021 to record the issuance of the bonds if the market rate of interest is 7%
Determine the diminishing marginal returns : How can diminishing marginal returns occur at a restaurant kitchen with 12 chefs?
Explain the purpose of recording : Explain the purpose of recording and using information management systems in a business and how are these used to support the company.
Record the redemption of the bonds : Assume the bonds were redeemed for $ 1,050,000 at September 30, 2024 when the amortized cost was $ 1,035,000. Record the redemption of the bonds
Calculate the issue price of the bond : Prepare a bond discount amortization schedule which shows the amortization of discount for the first two interest payment dates

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.

  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!

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