User Account

All Pages

What is the selling price of the bonds

Assignment Help Accounting Basics
Reference no: EM132945126

Question - Moore Industries manufactures exercise equipment. Recently the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company's exercise equipment. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing P2,000,000 of 11% bonds on March 1, 2010, due on March 1, 2025, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 10%. What is the selling price of the bonds?

a. 1,269,776

b. 2,220,000

c. 1,690,970

d. 2,153,730

Reference no: EM132945126

Questions Cloud

Calculate the default risk premium : Calculate the default risk premium between the BBB yield curve and the government bond yield curve, for each maturity from 1 to 5 years
Calculate discount rate and corresponding yield unit rate : At a tender of $1 m, 182 days, a US T-bill is quoted at a price of $975,000. Calculate the discount rate and the corresponding yield unit rate (r)
What is the noncontrolling interest in income of subsidiary : Angela, Inc., holds a 90 percent interest in Corby Company. What is the noncontrolling interest in the 2021 income of the subsidiary?
Describe the use of financial leverage : Describe the use of financial leverage on firm's value (proposition 1) and firm's cost of capital (proposition 2) in light of Modigliani and Miller theory
What is the selling price of the bonds : At the time of issuance, the market interest rate for similar financial instruments is 10%. What is the selling price of the bonds
Which can be described as involving indirect finance : Which can be described as involving indirect finance? A corporation buys commercial paper issued by another corporation./ A bank buys a U.S. Treasury bill
What amount of Wei income statement will report Loss : The asset's value-in-use is estimated to be P6,084,000. What amount of Wei's 2013 income statement will report Loss on Impairment
What is the revenue recognition principle : What is the Revenue Recognition Principle? How can the revenue recognition principle be followed when accounting for gift card revenue?
Prepare the journal entries : PL Co paid the US supplier on 7th July 2020 when the exchange rate was A$1 = 0.74. Prepare the journal entries for the above

Reviews

Write a Review

Accounting Basics Questions & Answers

  What is the church and dwight company

What is the Church and Dwight Company

  Upon further investigation golden found that they could

golden reed company is considering outsourcing one its parts. golden requires 30000 of the parts per year. the part has

  What amount is the investment income for the current year

What amount is the balance of "investment in associate" at the current year-end? During the start of the current year, Holland Co. bought 30,000 shares.

  Discuss the cash dividend and paying the dividend

Journalize the entries declaring the cash dividend and paying the dividend

  Prepare mitchell income statement

Mitchell Corporation had income before income taxes of $195,000 in 2014. Mitchell's current income tax expense is $48,000, and deferred income tax expense.

  Discuss what method of sales force organization

What method of sales force organization would be most appropriate

  Estimated ending inventory at retail

Assuming the price level increased from 1.00 at January 1 to 1.85 at December 31, 2021, Estimated ending inventory at retail

  How can crm add value to an organisation

How can CRM add value to an organisation - Identify any organisational risk that a business may encounter as part of a CRM implementation.

  Tennessee harvester corporation issued debenture bonds

1.On January 1, 2013, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below:

  Prepare a report that shows the effect on the income

Prepare a report that shows the effect on the company's total net operating income of buying part F77 from the supplier

  Create sales invoice

Create sales invoice. Purchased 12 large sacks of Chocolate Coated Coffee Beans from Klam Wholesalers for $390 each. Sold 12 packages of Thermal Coffee Mug

  Prepare the issuer journal entry for each transactions

Prepare the issuer's journal entry for each of the separate transactions. On April 1, OP Co. issues no-par value common stock for $85,000 cash.

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