company issued 7%, 5-year bond with par value of $100,000. Market rate of bonds issued was 7.5%. the company recieved $97,947 cash.Use effective interest method
Dr Cash $97,947
Dr Bonds discount $2,053
Cr Bonds payable $100,000
The interest expense for the 1st semiannual interest is = carrying value of the bond x 0.0375* = $97,947 x 0.0375 = $3,673.01.
*0.0375 is half of mkt rate of 7.5%. Half cos it's semiannual.
The journal entry for the 1st semiannual interest payment wld be:
Dr Interest expense $3,673.01
Cr Bonds discount $173.01
Cr Cash $3,500.00 ................................................give me star
wow! thank you so much! I have a few more questions if you're interested in helping me? my friend and i are lost on these last few
yeah sure plz give me 5 stars..and put the questions i will bid then accept
I just rated you five stars.
Company borrowed 50,000 cash from bank, signed 6 year note at 7%. Present value of an annuity for 6 years at 7% is 4.7665. Annual annuity payments equal $10,490. present value of the loan is:
what amount u will pay me??
$3.00 for both
5s tar ............................
ok I want to pay you to answer 4 more questions plus the 2 you just gave me. How do I pay you?
so $9 all together
· 3 years ago
also give me stars
ok 10 works. where do I pay
place ans and i will bid acept my bid..............understand??
are u there??
u pay me last questins money??
I'm trying to figure it out. How to pay u
you dont know how to place a bid??
no I literally just signed up on here 10 minutes ago
place all questions at a time
thats the way u have done place questions i will bid and accept my bid
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