A company issued eight-year, 5% bonds with a par value of $350,000. The company received proceeds of

Question:

A company issued eight-year, 5% bonds with a par value of

$350,000. The company received proceeds of $373,745.

Interest is payable semiannually. The amount of premium amortized for the first semiannual interest period, assuming straight-line bond amortization, is

a. $2,698.

c. $8,750.

e. $1,484.

b. $23,745.

d. $9,344.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Accounting Principles

ISBN: 9780077303204

19th Edition

Authors: John Wild, Ken Shaw, Barbara Chiappetta

See More Books

Question Posted: Mar 10, 2024 10:00 AM

See More Questions

In December 2008, Rene Cook sat in her cubicle trying to remember what she had learned in business school about bonds and bond accounting. Ms. Cook, a new MBA and special assistant in a training...
Assume that you are going to receive $50,000 in 10 years. The current market rate of interest is 4%. a. Using the present value of $1 table in -->, determine the present value of this amount...
The following transactions were completed by Hobson Inc., whose fiscal year is the calendar year: 2010 July 1. Issued $10,000,000 of 10-year, 15% callable bonds dated July 1, 2010, at an effective...
For the following exercises, use shells to find the volume generated by rotating the regions between the given curve and y = 0 around the x-axis. 130. y = 1-x,x = 0, and x = 1 131. y = x, x = 0, and...
Sophie Vaillancourt started an investment management business, Vaillancourt Management on June 1, 2014. During the first month of operations, the business completed the following selected...
Read the article Yes, ABC Is for Small Business Too by Douglas T. Hicks, Journal of Accountancy, August 1999. (http://www.journalofaccountancy.com/Issues/1999/Aug/hicks.htm) Required: 1. According to...
Evaluate capital expenditure proposals using the discounted benefit-cost index. LO.1
A corporation issues $18,000,000 of 10% bonds to yield interest at the rate of 8%. (a) Was the amount of cash received from the sale of the bonds greater or less than $18,000,000? (b) Identify the...
Ch 9: Reporting and Analyzing Long-Lived Assets (3 of 20) Q 9.3: Pat's Garage installed a new parking lot. The paving cost $10,000 and the lights to illuminate the new parking area cost $5,000. These...
A company has 5,000 shares of $100 par preferred stock and 50,000 shares of $10 par common stock outstanding. Its total stockholders equity is $2,000,000. Its book value per common share is a....
A company issued five-year, 5% bonds with a par value of $100,000. The company received $95,735 for the bonds. Using the straight-line method, the companys interest expense for the first semiannual...
Refer to the data in E8-6. Each Veggy Bar requires . 02 direct labor hour. The average labor Obj. 2 rate is $\$ 10$ per hour. Prepare a direct labor budget for the first quarter of 2004 , showing...
When CH4(g) reacts with O2(g) to form CO2(g) and H2O(g), 192 kcal of energy are evolved for each mole of CH4(g) that reacts. Write a balanced equation for the reaction with an energy term in kcal as...
Ben Rogers, Judy Wilkinson, and Henry Walker were the partnership dentists. Ben Rogers became insolvent because of real estate investments. So, Judy Wilkinson and Henry Walker had to then pay the...
A random sample of 10 subjects have weights with a standard deviation of 10.8148 kg. What is the variance of their weights? Be sure to include the appropriate units with the result.
of stion 1. Harmonic Test II. Root Test III. Ratio Test Consider the series 8 = 72 Which one of the following tests can be used to determine whether it is convergent or divergent? IV. Integral Test...
Pharaoh company obtains $44,800 in cash by signing a 7%, 6 month, $44,800 note payable to First Bank on July 1. Pharoah's fiscal year ends on September 30. What information should be reported for the...
A stratified sample is being designed to estimate the prevalence p of a rare characteristic, say the proportion of residents in Milwaukee, Wisconsin, who have Lyme disease. Stratum 1, with N1 units,...
Why should you not model a decision variable as a random variable with a probability distribution?
Financial statements have a wide audience of interested stakeholders. Identify two or more financial statement users that are external to the company. For each user on your list, specify two...
Answer the following questions about the Target balance sheet. Target (TGT) a. Briefly describe the types of assets that Target is likely to include in its inventory. b. What kinds of assets would...
The Sarbanes-Oxley Act legislation requires companies to report on the effectiveness of their internal controls. The SEC administers the Sarbanes-Oxley Act, and defines internal controls as follows:...
Marie Forleo, a marketing trainer and host of MarieTV, presents the eight tips for genuine networking. Do you agree or disagree with her suggestions? Discuss how this information is useful to you and...
Identify all relevant costs or revenue that are applicable to production- constrained decisions 1. Contributions margin of product 2. Interference with other production 3. Contribution margin per...
Gammaro Compary manufactures wallets from fabric. In 2 0 1 9 , Gammaro made 2 , 1 5 0 , 0 0 0 wallets using 1 , 2 5 0 , 0 0 0 yards of fabric. In 2 0 1 9 , Gammaro has capacity to make 2 , 8 0 0 , 0...

A company issued eight-year, 5% bonds with a par value of $350,000. The company received proceeds of

Question:

Step by Step Answer:

e 3737...View the full answer

Fundamental Accounting Principles

Students also viewed these Business questions