![Business](/tpl/images/cats/ekonomika.png)
On june 30, 2017, shamrock company issued $4,800,000 face value of 13%, 20-year bonds at $5,161,102, a yield of 12%. shamrock uses the effective-interest method to amortize bond premium or discount. the bonds pay semiannual interest on june 30 and december 31.
(a) prepare the journal entries to record the following transactions. 1. the issuance of the bonds on june 30, 2017. 2. the payment of interest and the amortization of the premium on december 31, 2017. 3. the payment of interest and the amortization of the premium on june 30, 2018. 4. the payment of interest and the amortization of the premium on december 31, 2018.
(b)show the proper balance sheet presentation for the liability for bonds payable on the december 31, 2018, balance sheet.
(c) provide the answers to the following questions.
a. what amount of interest expense is reported for 2018?
b. will the interest expense reported in 2018 be the same as, greater than, or less than the amount that would be reported if the straight-line method of amortization were used?
c. determine the total cost of borrowing over the life of the bond.
d. will the total interest expense for the life of the bond be greater than, the same as, or less than the total interest expense if the straight-line method of amortization were used? the total amount of bond interest expense recognized on july 1, 2019, would be closest to
![answer](/tpl/images/cats/otvet.png)
Answers: 1
Other questions on the subject: Business
![image](/tpl/images/cats/ekonomika.png)
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 01:00, snikergrace
Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?
Answers: 3
![image](/tpl/images/cats/ekonomika.png)
Business, 22.06.2019 13:50, 2023apd
Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.
Answers: 2
Do you know the correct answer?
On june 30, 2017, shamrock company issued $4,800,000 face value of 13%, 20-year bonds at $5,161,102,...
Questions in other subjects:
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/mat.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 18.11.2020 09:00
![Konu](/tpl/images/cats/es.png)
![Konu](/tpl/images/cats/mat.png)
Mathematics, 18.11.2020 09:00
![Konu](/tpl/images/cats/mat.png)
Mathematics, 18.11.2020 09:00
![Konu](/tpl/images/cats/mat.png)
Mathematics, 18.11.2020 09:00
![Konu](/tpl/images/cats/mat.png)
Mathematics, 18.11.2020 09:00
![Konu](/tpl/images/cats/en.png)
![Konu](/tpl/images/cats/fizika.png)
Physics, 18.11.2020 09:00