What is the value of premium or discount on december

Assignment Help Accounting Basics
Reference no: EM132650632

Question 1: On January 1, 2020 ABC Co. issued 10% 3-year bonds with face value of $5,000,000 at 98. Additionally, ABC Co. paid a bond issue cost of $140,000. After consideration of bond issue costs to the initial measurement, the calculated effective interest rate is 12%. The interest is payable annually on December 31. ABC Co. uses the effective interest method in amortizing discount and issue cost. What is the value of premium or discount on December 31, 2020? (Round off present value factors up to four decimal places, in presenting your final answer round-up to the nearest dollar)

Reference no: EM132650632

Questions Cloud

How much is gain on conversion of bonds to recognized : The share premium from conversion option was $60,000. How much is the gain (loss) on conversion of the bonds to be recognized in profit or loss during period
Training and tactics : Select a terrorist organization and identify the tactics they most commonly employ. Defend your position on the success of such tactics.
What amount should abc recognize as pretax loss : On December 31, 2020, ABC Co. had outstanding 12%, What amount should ABC recognize as pretax loss on early extinguishment of bonds?
Analysis and evaluation based on the presented ea case : Analysis and evaluation based on the presented EA case, each response must have an introduction, body and conclusion with the student's own interpretation
What is the value of premium or discount on december : ABC Co. uses the effective interest method in amortizing discount and issue cost. What is the value of premium or discount on December 31, 2020?
Counter-surveillance strategies in terrorist operation : Discuss the importance of surveillance and counter-surveillance strategies in a terrorist operation. Compare and contrast the functions.
Competition-rivalry characterize the health care industry : Examine the key reasons why intense competition and rivalry characterize the health care industry. Suggest one (1) example to support your rationale.
How to record the acquisition of the equipment on march : Express Co. purchased equipment on March 1, 2019, for $95,000 on account. Record the acquisition of the equipment on March 1, 2019.
Mentoring and evaluating macroenvironment : Assess the value and importance of a PEST Analysis as a tool for mentoring and evaluating the macroenvironment.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How might process under a GAAP basis compare to IFRS basis

When preparing consolidated financial statements, which of the parent company's account balances must always be eliminated and why must they be eliminated?

  Show the effect of the above transaction on a statements

Show the effect of the above transaction on a statements model like the one shown below.

  What volume is required to provide a pretax profit

Assume that the group expects to perform 7,500 procedures in the coming year. What volume is required to provide a pretax profit of $100,000

  Bee company purchased 70 of apple corporation for 350000 on

bee company purchased 70 of apple corporation for 350000 on january 1 2008. on may 30 2008 apple corporation declared

  Salt company is considering investing in a new facility to

salt company is considering investing in a new facility to extract and produce salt. the facility will increase

  How much are total variable costs

Direct fixed costs are $90,000 in the downtown store and $93,000 in the campus location. How much are total variable costs

  Discuss what is the degree of operating leverage

What is the degree of operating leverage if the contribution margin per unit is $47

  Prepare entries assuming infrastructure assets capitalized

A city government adds street lights within its boundaries at a total cost of $253,500. Prepare entries assuming infrastructure assets capitalized

  The equipment had a book value of 50000 at january 1 2010

wilson owned equipment with an estimated life of 10 years when it was acquired for an original cost of 80000. the

  Prepare the journal entries for each transactions

A store location was rented, and $1,350 was paid for the first month's rent. Prepare the journal entries for each of these transactions

  Prepare the necessary march 31 journal entry to record

Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable.

  Financial performance for a recent fiscal period

Downhill Inc. sells, rents, and services ski equipment.Information about the company's financial performance for a recent fiscal period is provided below.

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