User Account

All Pages

What is the size of semi-annual payment into sinking fund

Assignment Help Financial Accounting
Reference no: EM132945248

The Harrow Board of Education financed the acquisition of a building site through a $300,000 long-term promissory note due in 15 years.
Interest on the promissory note is 9.25% compounded semi-annually and is payable at the end of every six months.
To provide for the redemption of the note, the Board agreed to make equal payments at the end of every six months into a sinking fund paying 8% compounded semi-annually.

Problem a. What is the semi-annual interest payment?

Problem b. What is the size of the semi-annual payment into the sinking fund?

Problem c. What is the annual cost of the debt?

Problem d. Compute the book value of the debt after 5 years.

Problem e. Compute the increase in the sinking fund in the 20th payment interval.

Reference no: EM132945248

Questions Cloud

Prepare the year-end entries for any amounts : Prepare the year-end entries for any amounts that should be recorded as a result. Classical's fiscal year ends on December 31. Financial statements are issued.
Should Ms Grider agree to the change in the Travel Expense : Should Ms. Grider agree to the change in the Travel Expense and Entertainment Expense accounts to Property Development? Explain
Prepare an adjusted trial balance on March : Annual interest on the note payable is 9%. Interest is due in one year upon the maturity of the note. Prepare an adjusted trial balance on March 31, 2023
Discuss what determines the steepness of the lm curve : Discuss what determines the steepness of the LM curve and Solve for the equilibrium output and the equilibrium interest rate
What is the size of semi-annual payment into sinking fund : What is the size of the semi-annual payment into the sinking fund? The Harrow Board of Education financed the acquisition of a building site through a $300,000.
Determine the gross profit for april and ending inventory : Determine the gross profit for April and ending inventory on April 30 using the (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO)
At what level of refinancing costs financially indifferent : At what level of refinancing costs are you financially indifferent? How much are you willing to pay in refinancing costs to take on the new mortgage
What should lowrider report a net loss : For the year ended December 31, 2021, what should Lowrider report a net loss? What should the income tax refund receivable be reported under current assets?
How the total rent and other space expenses be allocated : Ian uses 40% of the space solely for his business. The remainder is shared equally by both. How should the total rent and other space expenses be allocated

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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