Business, 27.04.2021 15:20, youby

Information taken from a Sears, Roebuck and Company annual report follows. December 31
Long-Term Debt ($ in millions) Year 2 Year 1
7% debentures, $300 million face value, due Year 11, effective rate $14.6%
$ 188.6 $ 182.7
Zero coupon bonds, $500 million face value, due Year 8, effective rate 12.0%
267.9 239.2
Participating mortgages, $850 million face value, due Year 5, effective rate 8.7%, collateralized by Sears Tower and related properties
834.5 833.9
Various other long-term debt 12,444.2 16,329.2
Total long-term debt $13,735.2 $17,585.0
Required:
1. How much interest expense did the company record during Year 2 on the 7% debentures? How much of the original issue discount was amortized during Year 2?
2. How much interest expense did the company record during Year 2 on the zero coupon bonds?
3. Suppose that interest payments on the participating mortgages are made on December 31 of each year. What journal entry did the company make in Year 2 to recognize interest expense on this debt?
4. How much cash interest did the company pay out during Year 2 on the 7% debentures and the zero coupon bonds?

Answers: 2

Show answers

Other questions on the subject: Business

Business, 21.06.2019 19:30, grace9874

Which p shifts to consumer in the four cs of the alternate marketing mix? a) promotion b) product c) place d) price

Answers: 3

continue

Business, 22.06.2019 05:00, nkazmirski3229

At which stage would you introduce your product to the market at large? a. development stage b. market testing stage c. commercialization stage d. ideation stage

Answers: 3

continue

Business, 22.06.2019 07:30, QueenNerdy889

1 2 3 4 5 6 7 8 9 10time remaining59: 30in the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war? 1 2 3 4 5 6 7 8 9 10time remaining59: 30in the dark game, how does the author develop the central idea that elizabeth van lew was a spymaster during the civil war?

Answers: 1

continue

Business, 22.06.2019 12:30, sloane50

land, a building and equipment are acquired for a lump sum of $ 1,000,000. the market values of the land, building and equipment are $ 300,000, $ 800,000 and $ 300,000, respectively. what is the cost assigned to the equipment? (do not round any intermediary calculations, and round your final answer to the nearest dollar.)

Answers: 1

continue

Do you know the correct answer?

Information taken from a Sears, Roebuck and Company annual report follows. December 31
Long-...