Solution-What will be the carrying amount of the bonds

What will be the carrying amount of the bonds

Assignment Help Cost Accounting

Reference no: EM13488906

The Acme Company issued 5%, 10-year bonds payable at 90 on December 31, 2010. At December 31, 2012, Acme reported the bonds payable as follows:
Bonds Payable 400,000
less: Discount 32,000 368,000
Acme uses the straight line amortization method and pays interest twice per year on June 30 and December 31.
Required: a: What is the maturity value of the bonds?
b: What is the carrying amount of the bonds on December 31, 2012?
c: What is the annual cash interest payment on the bonds?
d: How much interest expense will Acme record each year?
e: What will be the carrying amount of the bonds on December 31, 2014

Reference no: EM13488906

Questions Cloud

What is the angle between the cable and the bar : A horizontal bar 2.361 m long with a mass of 91.27 kg is hinged to a wall. What is the angle between the cable and the bar

Preparation of accounting information : Discuss the positive and negative implications of permitting choice in the preparation of accounting information

What is the standard cost of a single blanket : Overhead is applied to production on the basis of direct labor hours. During March, 924 blankets were manufactured and sold. Difference between standard and actual cost per blanket produced during March: $0.10 F.

What is the persons far point without glasses : A person uses corrective glasses of power -8.5 D. If the glasses are worn 2.0 cm from the eye, what is the person's far point without glasses

What will be the carrying amount of the bonds : The Acme Company issued 5%, 10-year bonds payable at 90 on December 31, 2010. At December 31, 2012, Acme reported the bonds payable as follows.

Financial statement compliant with gaap : Explain whether users of financial statements should exercise caution when interpreting financial statement compliant with GAAP.

Prepare the equity section of tolemans balance sheet : What was the book value per share of the outstanding common shares on December 31st 2007 ?

Users of financial statements : Explain whether users of financial statements should exercise caution when interpreting financial statement compliant with GAAP and explain how the choice of depreciation method affects reported profits.

Determine the effective length of her string : The G string on a violin has a fundamental frequency of 196 Hz. It is 27.0 cm long and has a mass of 0.500 g. what is the effective length of her string

User Account

All Pages

What will be the carrying amount of the bonds

Reference no: EM13488906

Reference no: EM13488906

Questions Cloud

Reviews

Write a Review

Cost Accounting Questions & Answers

Cost accounting assignment

Prepare the journal entries

Advise as to the liability of all the parties

Prepare revenues budget

Effect of exchange rate changes on cash and cash

Corporate governance

Cost-benefit analysis

Non-annual interest rates and annuities

Job costing in service organizations

Accounting for bad debt expense

Accounting and partnership problems

Development of relevant cash flows

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT