Viking voyager specializes in the design

Assignment Help Financial Management

Reference no: EM132021306

Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2018, the company issues $1,810,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year.

Required:

1. If the market interest rate is 7%, the bonds will issue at $1,810,000. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. If the market interest rate is 8%, the bonds will issue at $1,687,008. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. If the market interest rate is 6%, the bonds will issue at $1,944,641. Record the bond issue on January 1, 2018, and the first two semiannual interest payments on June 30, 2018, and December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Reference no: EM132021306

Questions Cloud

How can derivatives be used in risk management : How can derivatives be used in risk management? If you are an international corporation, what types of derivatives would you use to cover transactions?

Company charge for a razor and for a blade : Assuming the price elasticity of demand for blades is three. What price should the company charge for a razor and for a blade?

Why would a small firm choose to delist their stock : Why would a small firm choose to delist their stock? Is there a particular reason for a company taking this route? What is the cost of going dark?

Describe the new revenue recognition standards : Describe the new Revenue Recognition standards. Project the impact of these new standards on financial reporting.

Viking voyager specializes in the design : Viking Voyager specializes in the design and production of replica Viking boats.

Is arnett liable to hines for the value of her piano : Explain whether Swan will prevail in his action to recover possession of the bond.Is Arnett liable to Hines for the value of her piano and furniture?

Prepare october journal entries for both chung and seneca : The bank assesses a finance charge of 2% of receivables assigned and interest on the note of 9%. Prepare October 1 journal entries for both Chung and Seneca

Unemployment rate and the inflation rate : How will your policy recommendation impact interest rates, the unemployment rate, and the inflation rate?

Identify three broad alternatives for managing risk : Identify three broad alternatives for managing risk. Explain, and give 1 example for each. The response must be typed.

User Account

All Pages