Posts Tagged ‘Bond’

Help! Regarding Journal Entry And Bond Amortization?

The journal entry a company records for the payment of interest, interest expense, and amortization of bond discount is a. debit Interest Expense, credit Interest Payable and Discount on Bonds Payable b. debit Interest Expense, credit Cash and Discount on Bonds Payable c. debit Interest Expense, credit Cash d. debit Interest Expense and Discount on […]

Prepare A Bond Amortization Schedule?

On January 1, 2012, Loop Raceway issued 650 bonds, each with a face value of $1,000, a stated interest rate of 7% paid annually on December 31, and a maturity date of December 31, 2014. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were […]

Bond Selling At Discount?

Look at the following expression: Market price = $40/(1+.045)*1 + $40/(1+.045)*2 + … + $1040/(1+.045)*10 = $960.44 We can say that in the above case, the bond is selling at a discount. True or False? and pls explain why

Please Help Help. 10 Pts Best Answer Promise!! Bond Computations.?

If you don’t answer all that’s fine. i just need a jump start!!! Thank you so much!! Chapter 2 Problem 1 2. Bond computations: Straight-line amortization Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent […]

A 10 Year Bond With A Par Value Of 100,000 And Semi-annual Coupons 2500 Is Bought At A Discount To Yield 6% Co?

A 10 year bond with a par value of 100,000 and semi-annual coupons 2500 is bought at a discount to yield 6% convertible semi-annually. Calculate the theoretical clean price 4 months after the 5th coupon. It says the answer should be 95,902.37. I get that for the theoretical dirty price, not the clean price. Did […]

Retired Bond Question,help Please?

At December 31, 2011, the 10% bonds payable of Red Deer Inc had a carrying value of $380,000. The bonds, which had a face value of $400,000, were issued at a discount to yield 12%. The amortization of the bond discount had been recorded using the effective interest method. Interest was being paid on January […]

Cfa Level2 Question- Bond Investing?

1. Consider the following list of Treasury bond prices as of April 16, 2013: Bond Price 6.75’s of 10/16/2013 101-293/8 5.25’s of 4/16/2014 102-21/16 4.5’s of 10/16/2014 100-275/8 (a) Use this list to derive the discount factors for cash flows to be received in 6 months, 1 year, and 1.5 years. (b) Use the discount […]

On January 1, 2011, Park Corporation Sold A $600,000, 7.5 Percent Bond Issue (8.5 Percent Market Rate). The Co?

On January 1, 2011, Park Corporation sold a $600,000, 7.5 percent bond issue (8.5 percent market rate). The company does not use a discount account. The bonds were dated January 1, 2011, pay interest each June 30 and December 31, and mature in four years. 1. Give the journal entry to record the issuance of […]

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