User Account

All Pages

What amount of interest expense related to liability

Assignment Help Accounting Basics
Reference no: EM132565673

Question - On January 1, 20X2, Serenity Inc. issued a five-year note payable for $200,000 and received $190,000 in cash. The note bears interest at 6%, which is paid annually on December 31. There were $5,000 in directly related legal costs with respect to the note payable that Serenity paid in cash. Serenity has classified the note as an "other financial liability." The company has a May 31 year end and reports under IFRS. Serenity calculates interest based on the numbers of days the liability is outstanding. January 1, 20X2 - May 31, 20X2 is 151 days. What amount of interest expense related to this financial liability will Serenity recognize for its 20X2 fiscal year?

a. $5,681

b. $4,964

c. $5,327

d. $6,025

Reference no: EM132565673

Questions Cloud

Estimate the company wacc : Market prices are $1,050 for bonds, $20 for preferred stock, and $40 for common stock. Assume a 34% tax rate. Compute the company's WACC.
What amount of warranty expense will Fridge report : Fridges Inc. provides a two-year warranty on all refrigerators that it manufactures. What amount of warranty expense will Fridge report
What will be the amount charged to interest expense : What will be the amount charged to interest expense for MEI's year-ended December 31, 20X7 pertaining to this note payable
What ways does the type of economic environment diminish : What ways does this type of economic environment diminish the importance of working capital management to the firm? In what ways is working capital management
What amount of interest expense related to liability : What amount of interest expense related to this financial liability will Serenity recognize for its 20X2 fiscal year
Describe key elements of role that congress plays : Describe key elements of the role that Congress plays within the U.S. federal system, with particular focus on Congress' ability to reflect the will of people
How bmi had the following balances on january : Any unidentifiable consideration transferred over book value is assigned to goodwill. BMI had the following balances on January 1, 2018.
What is the rate of return on the portfolio in each scenario : Recession, What is the rate of return on the portfolio in each scenario? (Enter your answer as a percent rounded to 1 decimal place.)
Identify the president executive powers : Discuss representation and its various aspects as it relates to Congress. Identify the president's executive powers and the powers shared with Congress.

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