User Account

All Pages

What amount should the company record

Assignment Help Accounting Basics
Reference no: EM133128114

Question - On April 1st of the current fiscal year, a publicly-traded company issued 2,000 bonds each with a maturity value of $10,000 for a total maturity value of $20,000,000. They received a total of $18,600,000. Every bond sold for the same price. The stated annual interest rate for the bonds is 4% and interest is to be paid semi-annually on September 30th and March 31st. The bonds mature 10 years from the issue date. The issuing company uses the straight-line method of amortization and their fiscal year ends on December 31st.

For the calendar year in which the bonds are issued, what amount should the company record to recognize the amortization of bond discount?

Reference no: EM133128114

Questions Cloud

What is the estimated? life-cycle operating income : The direct costs of providing the? service, which is all? labor, averages? $40 per hour. What is the estimated? life-cycle operating income
Importance of the principal-agent relationship : What is the importance of the principal-agent relationship?
State the independent and dependent variables : The following data represent the daily demand ( in thousands of units) and the unit price (in dollars) for a product.
Discuss the role played by social media in current economy : Discuss the role played by social media in current economy? in 200 words
What amount should the company record : For the calendar year in which the bonds are issued, what amount should the company record to recognize the amortization of bond discount
Progenitors of the modern filipino short story in english : 1. Who was the one of the most important progenitors of the modern Filipino short story in English?
Explain the leadership styles-attitudes-behaviors : Define and explain the leadership styles, attitudes, behaviors, and characteristics that can improve the organization's culture and employee attitudes.
How much additional cash will raviv have : If the corporate tax rate is 38%, how much additional cash will Raviv have at the end of the year net of corporate taxes
Sustainable agriculture and economic growth in bangladesh : Theoretical Discussion on the Research topic: Sustainable agriculture and Economic Growth in Bangladesh (include discussion on at least four international journ

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