MacBride Enterprises sold $200,000 of bonds on December 31, 2011. A portion of the amortization table appears
Question:
MacBride Enterprises sold $200,000 of bonds on December 31, 2011. A portion of the amortization table appears below.
Required:
1. Indicate the stated annual interest rate on these bonds.
2. Calculate the effective annual interest rate on these bonds (rounded to the nearest 0.1 percent).
3. Determine the interest expense and premium amortization for the interest period ending December 31, 2013.
4. Determine when the bonds willmature.
Transcribed Image Text:
Premium Premium Cash Interest on Bonds on Bonds Payment Expense Payable Payable Carrying Period At issue 6/30/12 12/31/12 6/30/13 12/31/13 (Credit) (Debit) (Debit) Balance Value $9,000 9,000 9,000 $8,465 8,443 8,420 $535 557 580 $6,457 $206,457 5,922 205,922 5,365 205,365 4,784204,785
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
1 Stated interest rate 18000200000 9 The annual cash interest payment is 18000 2 Effective annual in...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-0324787351
1st Edition
Authors: Rich Jones, Mowen, Hansen, Heitger
Question Posted:
Students also viewed these Accounting questions
-
MacBride Enterprises sold $200,000 of bonds on December 31, 2011. These bonds mature on December 31, 2018. A portion of the amortization table appears below. Required: 1. Indicate the stated annual...
-
On December 31, 2011, Loren Co. held the following short-term available-for-sale securities. Loren had no short-term investments prior to the current period. Prepare the December 31, 2011, year-end...
-
On December 31, 2011, Tina and Webb, who share profits and losses equally, have capital balances of $170,000 and $200,000, respectively. They agree to admit Zen for a one-third interest in capital...
-
Monroe Inc. is an all-equity firm with 500,000 shares outstanding. It has $2,000,000 of EBIT, and EBIT is expected to remain constant in the future. The company pays out all of its earnings, so...
-
Ospry Company has working capital in the amount of $1,240,000. For each of the following transactions, determine whether working capital will increase, decrease, or remain the same. a. Paid accounts...
-
Explain why each of the following microoperations cannot be executedduring a single clock pulse in the system shown in Fig. 5-4. Specify a sequence of microoperations that will perform the operation....
-
Find the value of the frequency at which the imaginary component of the harmonic response of a viscously damped single-degree-of-freedom system (from \(X\) in Eq. (3.54)) attains a minimum. Equation...
-
Develop a communication plan for an airport security project. The project entails installing the hardware and software system that (1) Scans a passengers eyes. (2) Fingerprints the passenger. (3)...
-
1. Explain why the equilibrium in the model of consumers and firms that we are using in class this week is not Pareto optimal. 2. The table below represents demand Q for a firm's output at various...
-
Develop a complete use case for one of the following activities: a. Making a withdrawal at an ATM b. Using your charge card for a meal at a restaurant c. Buying a stock using an on-line brokerage...
-
Cagney Company sold $200,000 of bonds on June 30, 2010. A portion of the amortization table appears below. Required: 1. Indicate the stated interest rate on these bonds. 2. Calculate the effective...
-
Rising Stars Academy provided the following information on its 2009 Balance Sheet and Statement of Cash Flows: Required: 1. Calculate the following ratios for both companies: a. Debt to equity b....
-
A summary of changes in the capital accounts of the Katie, Lynda, and Molly partnership for 2011, before closing partnership net income to the capital accounts, is as follows: REQUIRED: Determine the...
-
Even though we only save 3000 per month and let's do this for 20 years of investing, then our money earns 12% per year will we see that after 20 years we would have 3 million?
-
Andes Inc. has outstanding $10,000,000 of 10%preferred stock outstanding.The companyhas a 40 percent tax rate.What amount of earnings before interest and taxes (EBIT) isrequired to pay the preferred...
-
The equipment can be sold for $200,000 at the end of the project. To finance the project, the company will borrow $300,000 at a 5% interest rate and finance the remaining amount internally. The loan...
-
Sebastian is in France for his vacation. He would like to buy a beautiful leather jacket for 500 Euro. The exchange rate is $1 USD = .81 Euro. Calculate the price in USD.
-
Disney Co. has an exciting project and seek your advice. The project has an initial outlay of $10 million and is expected to generate $2 million each year for the next 10 years. You decide to...
-
Quarterly demand for dishwashers at a white goods retailer is as shown. After obtaining initial estimates for level, trend, and seasonal factors, forecast quarterly demand for year 5 using Winters...
-
An example of prescriptive analytics is when an action is recommended based on previously observed actions. For example, an analysis might help determine procedures to follow when new accounts are...
-
Assuming that VERTEX COVER is \(\mathcal{N} \mathcal{P}\)-complete, prove that CLIQUE is also \(\mathcal{N} \mathcal{P}\)-complete by finding a polynomial time reduction from VERTEX COVER to CLIQUE.
-
Celia Cruz, a recent graduate of the local state university, is presently employed by a large manufacturing company. She has been asked by Angeles Ochoa, controller, to prepare the companys response...
-
Recently an article stated the setting of accounting standards in the United States is now about 70 years old. It is a unique process in our society, one that has undergone numerous changes over the...
-
Andrew Wyeth, an administrator at a major university, recently said, Ive got some CDs in my IRA, which I set up to beat the IRS. As elsewhere, in the world of accounting and finance, it often helps...
-
I am working in aMobile company that is seeking to introduce a novel mobile application that implements a monthly subscription fee for its users. After conducting a comprehensive analysis, the...
-
Tatiana has recently entered a profile into the Express Entry (EE) system as a candidate under the Canadian Experience Class (CEC). She has also met the requirements to qualify under the FSW. Tatiana...
-
Columbia Corp. is a young, rapidly growing company that manufactures computer accessories and specialized components for networked computer workstations. It has some unique products and a strong...
Study smarter with the SolutionInn App