User Account

All Pages

What is the carrying value of the bond liability

Assignment Help Accounting Basics
Reference no: EM133048082

Question - On January 1, 2018, Herskovitz Company issued $600,000 of ten-year, 9% bonds for $619,935. The market rate of interest on the date of issue was 8.5%, and semi-annual interest will be paid each June 30 and December 31. The company uses the effective rate method of amortization. What is the carrying value of the bond liability to be reported on the December 31, 2018 balance sheet?

a. $593,588

b. $618,601

c. $619,282

d. $500,000

Reference no: EM133048082

Questions Cloud

Member of the kamikaze special attack corps : Please read the excerpt on the following link... We Shall Plunge into Enemy Ships It describes the feelings and ideas of Heiichi Okabe, a member of the Kamikaze
Business processes as services can improve efficiency : How business processes as services can improve efficiency. This discussion is about business process as a service and security.
Research the technological terminology : Research the following technological terminology: TCP/IP protocol, client server computing, photonics, web services, WiMax, wireless/mobile devices, logical and
Explain the impact of databases on businesses : Explain the impact of databases on businesses. What industry has databases made possible? Give examples of database supported business applications or technolog
What is the carrying value of the bond liability : The company uses the effective rate method of amortization. What is the carrying value of the bond liability to be reported on December 31, 2018 balance sheet
Describe the culture of the walt disney company : How does the culture influence the customer experience at its theme parks, and how has it contributed to its success? please explain thouroghly
Computer security has been compromised : Explain a situation where computer security has been compromised. What can be learned from the experience?
Define emotional intelligence : Define Emotional Intelligence and briefly elaborate on its importance in the workplace. In other words, what is it and how can an organization benefit by educat
Calculate the price of the stock : If the dividends paid on a preferred stock issue are $3.8 per share and the cost of preferred stock is 6.3%, calculate the price of the stock

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