What is the amount of the financial asset on entity

Assignment Help Accounting Basics
Reference no: EM131939078

Question - Entity A acquires a 6% $1,000 bond, a financial asset, for $970, at the beginning of Year 1. Interest at 6% is receivable annually in arrears. The bond is redeemable at the end of Year 3 at a premium of 3% to par value. The financial asset is measured at Amortised cost.

The effective interest rate of the financial instrument is 8.1% which is based on the internal rate of return of the future cash flows.

What is the amount of the Financial Asset on Entity A's Statement of Financial Position as at the end of Year 2?

What is the amount of the Interest Expense on Entity A's Statement of Profit or Loss for Year 3?

Reference no: EM131939078

Questions Cloud

Compute the test statistic h : a. State the null and alternative hypotheses? b. What is the critical value of the test statistic for an a = 0.05 test?
What is the amount of gain or loss should be recognised : At 1 Apr 2017 the relevant index was 1,200 and at 31 Mar 2018 it was 1,296. What is the amount of gain or loss should be recognised at 31 Mar 2018
Review a list of the recommended team members : Imagine that you are a new manager responsible for the IT team in a start-up company that provides hosting services for online storefronts.
Kruskal -wallis procedure to analyze the data : Use the Kruskal -Wallis procedure to analyze the data. a. When would a nonparametric procedure be preferred for data such as these?
What is the amount of the financial asset on entity : What is the amount of the Financial Asset on Entity A's Statement of Financial Position as at the end of Year 2
Piece of equipment to turn out machined parts : A manufacturer builds a piece of equipment to turn out machined parts. To study the performance of her machines, she selects 8 machines
Introduce your chosen example of flawed creative thought : Identify an instance in which an individual or group was unsuccessful in using creative thinking to solve a problem.
How current state of economy will impact environmental scan : Essay that discusses how the current state of the economy will impact completing an environmental scan. Include an introduction and conclusion that make
What is the amount should the debt instrument be included : What is the amount should the debt instrument be included in Entity A's Statement of Financial Position as at 31 Dec 2017

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.

  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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd