What is amortization of discount-effective interest method

Assignment Help Financial Accounting
Reference no: EM13777621

On the first dy of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and received proceeds cash of $9,785,645.

What is the amortization of discount at the end of the first year and second year, using the effective interest method?

Reference no: EM13777621

Questions Cloud

Compute the amount of the bond interest expense : On the first day of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and received proceeds cash of $9,785,645. Compute the amount of the bond interest ..
Prepare an amortization table for the five years : On the first dy of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and received proceeds cash of $9,785,645. Prepare an amortization table for the fiv..
Discuss contemporary issues in cultural divestry and crime : Discuss contemporary issues in cultural divestry, crime, justice. Explain History of race, ethicity and sicial class in the U.S criminal justice system
What would the second semiannual interest payment : On the first dy of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and received proceeds cash of $9,785,645. What would the second semiannual interest..
What is amortization of discount-effective interest method : On the first dy of its fiscal year, Pedro Dynamite Co. issued $11,000,000 of the five-year, 9% bonds, semiannually. The bonds were issued at an effective rate of 12%, and received proceeds cash of $9,785,645. What is the amortization of discount at t..
Was this information confusing to you why or why not : Was this information confusing to you? Why or why not? Explain how it would assist a business owner to be aware of the information you gathered, from the search choice you made
Characteristics that were applied to different racial groups : When and where did you learn the characteristics that were applied to different racial groups, including your own? What were they?"
What is the annual operating cash flow : A company is considering investing in a piece of machinery which will cost $550,000. It will provide an additional $160,000 in sales each year and its annual operating expenses are expected to be $52,000. The machine will be depreciated on a straight..
Describe an online learning scenario : In this reaction and response assignment, you will describe an online learning scenario (imaginary or actual) in which an event has interfered significantly with the ability for the instructor to teach the course. You will then analyze the event a..

Reviews

Write a Review

Financial Accounting Questions & Answers

  What was the amount of investment

A company using cost-plus pricing has an ROI of 24%, total sales of 20,000 units and a desired ROI per unit of $30. What was the amount of investment?

  Determine basic earnings per share for lee in 2013

Lee Co. is a calendar-year firm with 120 million common shares outstanding throughout 2013. As part of its executive compensation plan, at January 1, 2012, the company had issued 12 million executive stock options permitting executives to buy 12 m..

  Inadequate segregation of duties

Inadequate segregation of duties over certain information system access controls.

  What is hedge accounting

What amount should be used to consolidate Placo's cost of goods sold into Limko's income statement under the temporal method?

  What total incremental costs will martinez

What total incremental costs will Martinez incur if it increases production from 10,000 to 10,001 units and what is the total amount expressed on a per unit basis?

  Create a system flowchart of the existing system

Create a system flowchart of the existing system- analyze the physical internal control weaknesses in the system. Model your response according to the six categories of physical control activies specified in the COSO internal control model.

  How much will output (q) increase

how much will output (Q) increase? c. If the number of trucks (K) decreases by 10% next year, how much will output (Q) decrease? d. What type of returns to scale is consistent with the above production function?

  What accounts are subject to adjusting journal entries

What accounts are subject to adjusting journal entries? What are the advantages and disadvantages of using automated accounting systems to do adjusting entries?

  How can sac avoid these behaviors

How can SAC avoid these behaviors? How should SAC tie performance measures to compensation.

  Illustrate what additional information is needed

As part of the audit, you must assess the operating effectiveness of controls related to the misstatement. Illustrate what additional information, if any, is needed to complete your assessment?

  Calculate the cash that tab comp

Calculate the cash that Tab Comp can expect to collect during April. Show all of your calculations and evaluate the number of computer hardware units that should be ordered in January. Show all of your calculations.

  Facilities presently devoted to production of prositrons

Assume Hanson, Inc. has no alternative use for the facilities presently devoted to production of the prositrons. If the outside supplier offers to sell the prositrons for $850 each, should Hanson, Inc. accept the offer? Fully support your answer w..

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