Modules ACOS113.90 x Writing Assignment Submissio x Microsoft Word - ACG 3113 V X Topla Crazy Cakes ay/Downloads/ACGX203113%20-%20Writing%20Assignment_Bond%20Redemption%20520%20(1).pdf Intermediate II ACG 3113 Lively | Spring 2020 Writing Assignment: Bond Redemption Topic Crazy Cakes, a private company, is preparing to issue a bond to open a new bakery in an up-and- coming city. The bookkeeper, Sloan Baker, plans to amortize the bond using the effective interest method. For calculation purposes, assume the following information: The bond is expected to be a 4-year, $100,000 face value, 4% bond with an effective annual yield of 8%. Interest will be payable semiannually. If all goes well, the bond will be issued on March 1, 2021, and the first interest payment date will be September 1, 2021. The bonds are expected to be callable at 101 at any time on or after March 1, 2023. Requirements You have been hired as an expert on bonds to write a memo to Sloan explaining how the call feature could affect their business. Be sure to include the following: a) Educate the company on how bond redemptions work. What are the pros and cons of calling their bond before maturity? What are some things they should consider? b) Include an amortization schedule using the effective interest method as an exhibit to follow your memo (you do not need to consider prorations) Consider your audience and address explicit and implicit issues or concerns. Your goal is to present a technical topic in a way that can be understood by an audience that has a basic but limited understanding of the accounting for bonds. Everything you include in your memo should be specific to this bond and not bonds in general Your memo should be limited to one page (although it's OK if the table crosses over onto the second page or is presented on the back of your memo). Memos should be single-spaced, but breaks for new paragraphs are fine. Your goal is to explain your findings in a way that is easy to understand (avoid simply re-stating what is specified in GAAP). You also want to avoid going off on a tangent about other things that Sloan didn't ask. Even though all memos will have a similar conclusion, I expect each student's memo to be a little different in their approach, presentation, or organization of information. Individual Assignment & Plagiarism Please remember that this is an individual assignment. You may discuss the topic with others a de him a Domeshare with me m MacBook Air Modules ACOS113.90 x Writing Assignment Submissio x Microsoft Word - ACG 3113 V X Topla Crazy Cakes ay/Downloads/ACGX203113%20-%20Writing%20Assignment_Bond%20Redemption%20520%20(1).pdf Intermediate II ACG 3113 Lively | Spring 2020 Writing Assignment: Bond Redemption Topic Crazy Cakes, a private company, is preparing to issue a bond to open a new bakery in an up-and- coming city. The bookkeeper, Sloan Baker, plans to amortize the bond using the effective interest method. For calculation purposes, assume the following information: The bond is expected to be a 4-year, $100,000 face value, 4% bond with an effective annual yield of 8%. Interest will be payable semiannually. If all goes well, the bond will be issued on March 1, 2021, and the first interest payment date will be September 1, 2021. The bonds are expected to be callable at 101 at any time on or after March 1, 2023. Requirements You have been hired as an expert on bonds to write a memo to Sloan explaining how the call feature could affect their business. Be sure to include the following: a) Educate the company on how bond redemptions work. What are the pros and cons of calling their bond before maturity? What are some things they should consider? b) Include an amortization schedule using the effective interest method as an exhibit to follow your memo (you do not need to consider prorations) Consider your audience and address explicit and implicit issues or concerns. Your goal is to present a technical topic in a way that can be understood by an audience that has a basic but limited understanding of the accounting for bonds. Everything you include in your memo should be specific to this bond and not bonds in general Your memo should be limited to one page (although it's OK if the table crosses over onto the second page or is presented on the back of your memo). Memos should be single-spaced, but breaks for new paragraphs are fine. Your goal is to explain your findings in a way that is easy to understand (avoid simply re-stating what is specified in GAAP). You also want to avoid going off on a tangent about other things that Sloan didn't ask. Even though all memos will have a similar conclusion, I expect each student's memo to be a little different in their approach, presentation, or organization of information. Individual Assignment & Plagiarism Please remember that this is an individual assignment. You may discuss the topic with others a de him a Domeshare with me m MacBook Air
