Record the sale of the bonds for cash

Reference no: EM131965903

Question: On December 31, 2016, Sneezy purchased $75,000, 10%, 12 year bonds of Huntsman Corporation for $78,000 cash. The bonds pay interest semi-annually each June 30 and December 31. Straight-line amortization is used when necessary. On December 31, 2017, the market price of the bonds was $78,500. (Hint: you may want to identify face, stated rate, annual interest, semi-annual interest, price, and premium/discount) Assuming the bonds were purchased as held to maturity securities, give the entry to record the sale of the bonds on December 31, 2024 for $78,200 cash.

Reference no: EM131965903

Questions Cloud

Compute the stock earnings per share : Compute the stock's earnings per share (EPS). Determine what the stock's dividend yield would be if it paid $3.16 per share to common stockholders.

What was the cash flow to stockholders for the year : The December 31, 2015, balance sheet of Schism, Inc., showed $150,000 in the common stock account and $2,750,000 in the additional paid-in surplus account.

What will be the resulting percentage change in ebit : Deci-Bell, Inc. is producing new headphones. Deci-Bell Inc. has a base level of sales of 267449 units. Sales price per unit is $132.63 and variable cost.

Prepayment penalty based on the loan balance : If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2015?

Record the sale of the bonds for cash : On December 31, 2016, Sneezy purchased $75,000, 10%, 12 year bonds of Huntsman Corporation for $78,000 cash. The bonds pay interest semi-annually each June 30.

How much do you owe on the loan at the end of six months : You decide to buy a new Tesla Model S for $70,000. You tap your savings to put 10% cash toward a down payment and finance the rest of the purchase.

Calculate the dividend payment in year : They will keep this policy for the next 10 years. Afterward, they will increase their dividends by 2.5%/year, Calculate the dividend payment in year 18.

How much money will be in account at the end of time period : You have decided to place $436 in equal deposits every month at the beginning of the month into a savings account earning 9.43 percent per year.

Maintain zero growth dividend policy : They will maintain a zero growth dividend policy, forever. R=15%. Calculate the stock price today.

User Account

All Pages