What is the purchase price ofthe investment

Assignment Help Accounting Basics
Reference no: EM132702981

On January 1, 2019, Shimmer Company purchased a 6-year bond with a face amount of 5,500,000 to yield 8%. Interest is to be paid every December 31 while the principal is to be repaid on maturity. The maturity date ofthe investment is on January 1, 2025. An active market is available so there is no problem to ascertain the fair value of the bonds. The stated rate of the bond is 11.50%. On December 31, 2019 the bond is trading at 12%; on December 3 1, 2020 the bond is trading at 11.25%; on December 31, 2021 the bond is trading at 14%,- and on December 31, 2022 the bond is trading at 13.75%. Use four decimal places only.

Problem 1: What is the purchase price ofthe investment?

Reference no: EM132702981

Questions Cloud

Which body systems are affected : Establish your topic is a problem (establish link between health issue and medical condition in your population). Which body systems are affected?
How do need a accrual entry for the income from haircuts : How do need a accrual entry for the income from haircuts as at 30/6/X1. Brice has a contract with the local boarding school where cuts the hair of the students
Asian american in position of power in corporation : Conduct research to find an Asian American in a position of power in corporations, politics, or universities.
Show the general ledger journal entries for the transactions : SHOW the general ledger journal entries for the transactions. If no entry is required, do not leave it blank. State "No Entry Required"
What is the purchase price ofthe investment : What is the purchase price ofthe investment? On January 1, 2019, Shimmer Company purchased a 6-year bond with a face amount of 5,500,000
What is Abigail recognized gain or loss on the contribution : A fair market value of $58,000 to Blair and Partners, a partnership. Abigail receives a 50% interest in Blair. What is Abigail's recognized gain or loss
Why is the given topic important to investigate : Why is this topic important to investigate? Highlight the importance of the problem/issue and make general statements about the problem/issue.
Show the general ledger journal entries for the transactions : SHOW the general ledger journal entries for the transactions. If no entry is required, do not leave it blank. State "No Entry Required"

Reviews

Write a Review

Accounting Basics Questions & Answers

  Xyz company purchased a new machine on january 1 2002 for

xyz company purchased a new machine on january 1 2002 for 84000. the machine had a 5-year life and a 1000 salvage value

  A management purpose for allocating joint costs of a

a management purpose for allocating joint costs of a processing center to the various products produced is toa.

  What are the merit for matrix type of organization

How could we evaluate management part of the organization like Entrepreneur, Board of Directors, Chief Executive Officer, Department Head?

  How should they treat the losses

Juan lost $18,000 in the real estate development business and $26,000 in the real estate rental business. How should they treat the losses

  Effect on free cash flows

What would be the effect on free cash flows of each of the following items (be sure to include specifically whether "increase" or "decrease/reduce," and by what dollar amount):

  Annual income without the special order

Prepare a three-column comparative income statement that reports the Annual income without the special order - Should Calla accept the order?

  Werth company asks you to review its december 31 2010

werth company asks you to review its december 31 2010 inventory values and prepare the necessary adjustments to the

  Accounting for leases

Accounting for Leases

  Head of international marketing

You're the CFO of the Kraknee Roller Skate Company, which sells roller skates worldwide and also builds and operates roller rinks. Some time ago Archie Speedo, the head of international marketing, proposed selling skates in Russia.

  Prepare a scatter diagram for each of these data sets and

prepare a scatter diagram for each of these data sets and then express in words the apparent relationship between the

  How are the remaining segments reported

A company has 10 industry segments, of which the largest five account for 80% of the combined revenues of the company. What considerations are important in determining the number of segments that are separately reportable and How are the remaining..

  Calculate total amount to be assigned to cost of goods sold

Calculate the total amount to be assigned to cost of goods sold for the fiscal year ended September 30, average method, round the average unit cost

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