What is the interest income for current year for quatro co

Assignment Help Financial Accounting
Reference no: EM132867252

Problem 1: At the beginning of the current year, QUATRO Company purchased 5-year bonds with a face amount of ? 2,250,000 at a stated interest of 10% per year payable semi-annually every January 1 and July 1. The bonds were acquired to yield 8%. The present value of an annuity of 1 for 10 periods at 5% is 7.72; present value of an annuity of 1 for 10 periods at 4% is 8.11; present value of 1 for 10 periods at 4% is .676; present value of 1 for 10 periods at 5% is .614; present value of 1 for 5 periods at 10% is .621; present value of 1 for 5 periods at 8% is .681. What is the interest income for the current year?

Reference no: EM132867252

Questions Cloud

What is the value of the right-of-use asset : Assuming that this is classified as an operating? lease, what is the value of the right-of-use asset at the? lease's commencement
What amount of the costs should be capitalized for paseo co : What amount of the costs should be capitalized? On September 7, 2020, Paseo Company incurred the following costs for one of its printing presses
Describe potential costs and benefits of acquisition target : Describe the potential costs and benefits of each acquisition target. Select the correct acquisition based on those costs and benefits.
Discuss how the kidneys process carbohydrates : Discuss how the kidneys process carbohydrates, lipids, and proteins, and the effect that an imbalance of these three macromolecules can have on renal function.
What is the interest income for current year for quatro co : .614; present value of 1 for 5 periods at 10% is .621; present value of 1 for 5 periods at 8% is .681. What is the interest income for the current year?
What is the yield to maturity of the bonds : Springfield Nuclear Energy Inc. bonds are currently trading at $1,168.47. What is the yield to maturity of the bonds
What is market or purchase price of bonds upon acquisition : What is the market or purchase price of the bonds upon acquisition? QUATRO Company purchased 5-year bonds with a face amount of ? 2,250,000.
How the trachea stays open during swallowing : How the trachea stays open during swallowing? What is blood air barrier, its physiology? Why a pneumonia can compromise its function ?
How much annual deposit should you make : You wish to make an annual deposit in a bank account that will earn an interest of 2.5%. How much annual deposit should you make

Reviews

Write a Review

Financial Accounting Questions & Answers

  Calculate the cost of equity capital for datson ltd

Calculate the cost of equity capital. The current market price of equity shares is Rs. 40. It is expected to maintain the fixed dividend payout ratio

  Prepare a schedule of cost of goods manufactured

BU 610 - Finance and Accounting for Decision-Making - Herzing University - Prepare a schedule of raw materials placed in production for the year ended December

  Write out a formal representation of data-generation process

Write out a formal representation of the data-generation process for weekly soda sales that incorporates these and additional factors.

  Profitability ratio

Which of the following is NOT a profitability ratio?

  What the present value of cost to the business of leasing

Tax rate is 20%, pre tax cost of borrowing is 15%. The present value of cost to the business of leasing the machine is closest too

  Calculate the percentage increase or decrease in cash

Please calculate the percentage increase or decrease in cash for the total line of the operating, investing, and financing sections bolded above and explain the major reasons for the increase or decrease for each of these sections.

  Prepare a tabular summary of the effects of the actions

On October 31, the stockholders' equity section of Pele Company's balance sheet consists of common stock $327,600 and retained earnings $423,000. Prepare a tabular summary of the effects of the alternative actions on the company's stockholders' eq..

  How does the income statement prepared for a company

How does the income statement prepared for a company that sells goods differ from that prepared for a service business and provide the examples

  Evaluate pacific internal control system

Evaluate Pacific's internal control system and indicate which principles of internal control appear to have been ignored.

  Explain accounting treatment of goodwill in subsequent years

Goodwill on the Balance Sheet may reveal, Explain whether the accounting treatment of goodwill in subsequent years could be a concern for financial reporting.

  Annual statements for the use of management

Federal income tax returns of an officer of the corporation to determine whether he or she has included all taxable income in his or her return. Financial statements for use by stockholders when there is an internal audit staff. A bond indenture agre..

  Determine nature-timing and extent of audit procedures

proessional auditing standards present the audit risk model, which is used to determine the nature, timing, and extent of audit procedures?

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