Which the investor interest income for the year would be

Assignment Help Financial Accounting
Reference no: EM133010315

Problem 1: Ana purchased a bond as a long-term investment on January 1. Annual interest was received on December 31. The investor's interest income for the year would be lowest if the bond was purchased at:

Option 1: a discount.

Option 2: a premium.

Option 3: par.

Option 4: face value.

Problem 2: If the bonds are acquired between interest payment dates, the price paid for the bond would be:

Option 1: equal to the acquisition cost.

Option 2: increased by a charge for accrued interest to the date of purchase.

Option 3: decreased by a credit for accrued interest to the date of purchase.

Option 4: equal to the par value increased by a charge for accrued interest to the date of purchase.

Reference no: EM133010315

Questions Cloud

What will happen to the retained earnings for paula : What will happen to the retained earnings? Paula employs the book value method to record the conversion of bonds into common stock.
What happens to the npv : Question - Consider Coral Bay. If the land salvage value is changed to $600,000 what happens to the NPV
What is the most likely cause of the decline in bond market : In 2002, Lama acquired at a premium, Jen's 10-year bonds as a long-term investment. What is the most likely cause of the decline in the bond's market value?
What is the after-tax return for the same investor : What is the after-tax return for the same investor if these shares were held in an ordinary savings account? Assume that the investor is in the 30 percent tax
Which the investor interest income for the year would be : Annual interest was received on December 31. Which The investor's interest income for the year would be lowest if the bond was purchased at
What is the amount of the household : A household has a college student dependent qualifying for the American Opportunity Credit. What is the amount of the household's American Opportunity Credit
Find which the premium or discount on bonds purchased : Find which The premium or discount on bonds purchased as a temporary investment generally reported on published financial statements as
Calculate the proceeds on issuance of the bonds : The bonds carry a 6.8% interest rate and are sold at 111.31 to yield 5.5%. They pay interest semi-annually. Calculate the proceeds on issuance of the bonds
How much is each investment worth today : How much is each investment worth today? Staci invested $1,200 three (3) years ago. Her investment paid 10.8 percent interest compounded monthly.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare journal entries without explanations for transaction

In the journal provided, prepare journal entries without explanations for the following transactions. Write "no entry" if none is needed.

  How much is the initial carrying amount of the bond

On the January 2020, An entity acquires a bond for P1,000, incurring transaction costs of P70. How much is the initial carrying amount of the bond

  Deferred when consolidated financial statements

During 20x1, Easy Co. sold inventory to its parent company, Flower Corp. Flower still owned the entire inventory at the end of 20x1. Why the gross profit on the sale must be deferred when consolidated financial statements are prepared at the end of 2..

  Describe the characteristics of the industry and company

Describe the characteristics of the industry and company (and or product life cycle) that would be the most suitable for each of the budgeting approaches

  How do make a single-step income statement

How do make a single-step income statement. Combine selling expenses together in a single entry and combine administrative expenses together in a single entry.

  What will be digby book value

Digby's balance sheet $96,117,000 in equity. If next year, assets decrease by $4,000,000 and liabilities increase by $2,000,000, what will be Digby book value

  Calculate the percentage change in profits IT sales decrease

Calculate the percentage change in profits IT sales decrease by 10 percent. (Round your answer to one decimal place.) 14 % decrease

  What is the NPV of the new equipment

The entrepreneurial student believes that operating revenues will increase annually by $9,500. What is the NPV of the new equipment

  Which is a main concern raised about the recognition of land

Which is a main concern raised about the recognition of land under roads? If borrowing costs are capitalised, capitalisation continues?

  What were flotation costs as a fraction of funds raised

The firm incurred $200,000 in legal, administrative, and other costs. Determine What were flotation costs as a fraction of funds raised?

  What are ways to gain acceptance of new visualizations

What are ways to gain acceptance of new visualizations or methods when you are faced with resistance in your organization? Provide an example.

  Make the purchase ledger control account vs the net total

At 31 December 2020 the net total, Prepare a reconciliation between the purchase ledger control account and the net total of the purchase ledger balances.

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