User Account

All Pages

What is the premium or discount on the bonds

Assignment Help Accounting Basics
Reference no: EM132828022

Question - On July 1, 2020 Shamrock Limited issued bonds with a face value of $990,000 due in 20 years, paying interest at a face rate of 7% on January 1 and July 1 each year. The bonds were issued to yield 9%. The company's year-end was September 30. The company used the effective interest method of amortization.

Required -

1) What is the premium or discount on the bonds?

2) Prepare partial Bond Premium/Discount Amortization Schedule for Shamrock Limited. Only the entries in the schedule for July 1, 2020, January 1, 2021, and July 1, 2021.

3) What it the journal entry to record the issue of the bonds.

4) What is the year-end accrual entry for Shamrock Limited at September 30, 2020.

5) What is the journal entry on January 1, 2021 when Shamrock makes the first payment of interest on the bonds?

Reference no: EM132828022

Questions Cloud

What are important preparatory steps : What are important preparatory steps that key stakeholders need to take in a very large non-profit organization for change implementation?
Summarize alfred mccoys argument on covert netherworld : Summarize the main points in Alfred McCoy's argument on Covert Netherworld - You must support your arguments and claims by using scholarly sources
How do provide the journal entries to record the revaluation : How do provide the journal entries to record the revaluation on 1 July 2017 and the subsequent sale on 1 July 2018. Warren Ltd acquires a four-wheel-drive bus
Determine the applicability of each control : Create a table that lists the 8 controls from the Gail Industries case study. Determine the applicability of each control based on the elements provided.
What is the premium or discount on the bonds : The company's year-end was September 30. The company used the effective interest method of amortization. What is the premium or discount on the bonds
How do you think globalization affects talent management : How do you think globalization affects talent management? What are some of the different approaches corporations take now to find new talent?
Implementation of a new strategic plan : How should the implementation of a new strategic plan in a very large non-profit organization be sustained?
Calculate the depreciation expense to be reported : BC Co. acquired equipment on January 1, 2020. Calculate the depreciation expense to be reported in the income statement for the year ended December 31, 2021.
Explain how you would utilize each of the assessments : Explain how you would utilize each of the assessments. Identify 1 benefit and 1 potential drawback that each assessment provides.

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