What is the carrying value of the debt security

Assignment Help Accounting Basics
Reference no: EM133119602

Question - A firm purchased a 4-year, $40,000 bond at face value on July 1, 2017. The bond's stated interest rate is 5%, paid annually on June 30. The firm has the intent and the ability to hold the bond for the full four years. As a result of changes in the overall economy, the bond had a fair value of $41,000 on July 1, 2018, and $42,000 on July 1, 2019. What is the carrying value of the debt security on July 1, 2018, and 2019, respectively?

Reference no: EM133119602

Questions Cloud

Discuss the conceptual merits of depreciation accounting : Question - Discuss the conceptual merits of depreciation accounting with respect to the value of an asset, the amount(s) expensed
Calculate initial investment amount : Peter is at the age of 25, and his friend David (an insurance/mutual fund broker) offered him a retirement savings plan investment opportunity.
Prepare the adjusting entries necessary : Prepare the adjusting entries necessary at December 31, 2021 in order to properly report interest expense related to the above transactions
Compute the quarterly payments : Mrs. Anonas acquired a loan of P60.GOO from a credit union that charged an interest of 12% compounded quarterly. She promised to settle her obligation by making
What is the carrying value of the debt security : A firm purchased a 4-year, $40,000 bond at face value on July 1, 2017. What is the carrying value of the debt security
Forthcoming business venture : To create a fund for his forthcoming business venture, Matthew decides to deposit P5,000 at the end of each month to his bank account. If the bank pays 1% compo
How does an investment banker keep the dealer : How does an investment banker keep the dealer and trader in separate departments? Why is it necessary?
Celebrate cultural diversity : How do you support and celebrate cultural diversity within instruction? How do you leverage home language and cultural assets?
Calculate sharpe ratio for stock a and the market : Using the information in the table calculate information ratio. Assume that the idiosyncratic risk for stock A is 8.25 percent.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Discuss the audit risk model

Examine at least two (2) performance ratios that you would use in order to determine which analytical tests to perform.critical steps inherent in planning

  What will be the recovery rates of these bonds

In theory, what will be the recovery rates of these bonds? What might cause the actual recovery rate on the junior bonds to be higher

  Make adjusting entries

Make adjusting entries for 2009 and 2010 for Straight-line, Units of Production, Double declining and sum of the years

  Problem regarding the transfer tax credit

In 2015, Christian wants to transfer as much as possible to his 8 adult married children (including spouses) and 13 minor grandchildren without using any unified transfer tax credit, A) How much can Christian give without using any unified transfer..

  Prepare the journal entries by both gless and century

On July 1, 2016, when Gless's common stock had a market price of $33 per share, Century converted the bonds it held. Prepare the journal entries

  Briefly explain the background of the two companies

Compare and contrast the 2 financial statements: how did they perform compared to the industry? How were they presented compared to one another

  What skill must be developed to evaluate company performance

What is managerial accounting and how does it help businesses create a competitive advantage? What skills must be developed to evaluate company performance

  Compute earnings per share

Net income for 2020 was $2,542,000. No cash dividends were declared or paid during 2020. Compute earnings per share for 2020

  Computer equipment was acquired at the beginning of the

computer equipment was acquired at the beginning of the year at a cost of 67944.00. the computer equipment has an

  Compute the working capital and debt to assets ratio

Suppose the 2022 adidas financial statements contain the Following selected data (in millions). Compute the Working capital and Debt to assets ratio

  Which the order of presentation in statement of financial

Which the order of presentation in the statement of financial position starts with equity and is followed by liabilities based on? disclosure function is

  What is the exclusion percentage

Assuming that she receives $6,800 this year, what is the exclusion percentage and how much is included in her gross income

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