User Account

All Pages

What is the total amount of cash paid by sure inc

Assignment Help Accounting Basics
Reference no: EM132772500

On April 1, 2014, SURE Inc. acquired bonds securities of PNB dated January 1, 2014. The bonds have face value of P1,000,000 payable at the end of its four-year term. Interest of 10% is payable every December 31. The effective interest rate of the bonds on January 1, 2014 is 15%. The objective of the business model of SURE Inc. is to hold assets in order to collect contractual cash flows from principal and interest. On January 1, 2016, SURE Inc. sold the PNB bonds for 110 less disposal cost of P150,000.

Problem 1: What is the total amount of cash paid by SURE Inc. to PNB on April 1, 2014 to acquire the bonds?

a. P857,251
b. P864,398
c. P885,839
d. P889,398

Reference no: EM132772500

Questions Cloud

Does warranty accrual recommendation create ethical dilemma : Denise Bunch is the sales manager for a tractor supply company. Does the warranty accrual recommendation create an ethical dilemma for Bunch
How much is the interest income to be recognized by sure : How much is the interest income to be recognized by SURE Inc. for the year 2014? On April 1, 2014, SURE Inc. acquired bonds securities of PNB dated January
Products or services to increase productivity : What are some of the factors that cause organizations to redesign their products or services to increase productivity?
What are the side effects of antipsychotic medications : Mention some barriers for psychiatric patients for complaint with medication treatment. Comment about the best treatment for the first psychotic episode.
What is the total amount of cash paid by sure inc : What is the total amount of cash paid by SURE Inc. to PNB on April 1, 2014 to acquire the bonds? On April 1, 2014, SURE Inc. acquired bonds securities of PNB
What is the firm inventory turnover : Consider a firm with net income of $160 million, revenue of $420 million, and cost of goods sold of $175 million. What is the firm inventory turnover
Different groups that use financial ratio analysis : There are several different groups that use financial ratio analysis. Who are these groups and what are the primary concerns of each? Justify your answer.
How and why you came to your insights : A reflection assignment is just a short essay based on your readings from chapters 7, 8, and 9. When writing about your readings, think about how.
Determine what interest income for the year ended december : Evaluate What is the interest income for year ended December 31, 2020, if the business model of entity is to sell bonds to obtain short-term profit

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