Solution-What was the effective interest rate on the bonds

What was the effective interest rate on the bonds

Assignment Help Accounting Basics

Reference no: EM132600502

Question - Sunland Company issued $6,200,000 of 12%, ten-year convertible bonds on July 1, 2017 at 96.1 plus accrued interest. The bonds were dated April 1, 2017 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2018, $1,220,000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion. What was the effective interest rate on the bonds when they were issued?

Reference no: EM132600502

Questions Cloud

What is the total current assets for under armour : What are the Total Current assets , Total liabilities, Net position, Operating Revenues, Total operating expenses, and Operating income for Under Armour

Analyze the needs of the domain : Describe a business scenario that requires a new or modified IT infrastructure. Analyze the needs of the domain.

Are union good or bad for the economy : You are watching national news with your roommate. The news anchor says, "unemployment statistics release

Define the concept of organizational memory : Define the concept of Organizational Memory and discuss how it could work better in the case of NASA's management of organizational knowledge.

What was the effective interest rate on the bonds : Accrued interest was paid in cash at the time of conversion. What was the effective interest rate on the bonds when they were issued

The coso framework of internal controls : The COSO framework of internal controls is practiced within companies around the world.

Find the annual payment that is sufficient to repay the loan : Suppose the rate of interest 10% a year. Find the annual payment that is sufficient to repay the loan. What the interest for last year?

What types of decisions can a manager make : Describe two major factors that a portfolio manager should consider before designing an investment strategy. What types of decisions can a manager make

Proactive about threats to information security : Create a national "security culture," in which everyone is more knowledgeable and proactive about threats to information security?

User Account

All Pages

What was the effective interest rate on the bonds

Reference no: EM132600502

Reference no: EM132600502

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT