Assume that company A purchase a 7%,$ 100000 for the period of 5 years. The effective rate

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Question:

Assume that company A purchase a 7%,$ 100000 for the period of 5 years. The effective rate of interest being 8%. The interest is amortized annually. Required

a.compute the present value of the bond

journal entries to record the invested to the bond

Bonds amortization schedule using effective interest method

Journal entries to record interest expense for all years

2. Assume that a company purchased bond worth 100000 whereby the stated rate of interest and effected rate are the same

Required

Prepare the journal entries to record the above on the book of the purchaser and issuer

3. Explain the advantages of using LIFO as an inventory method

4. Between the three-inventory method, which one is the best method. Justify your answer with words not less than 150

5.State the international reporting standards that accountant use

6.What are the advantage of the perpetual inventory system

7. How d inventory of the manufacturing firms differs with other firms. Discuss it widely

8. What do you mean by the term unpresented cheques

9. Use the class figures to prepare the bank reconciliation account

10.In December 2013 company factor account receivable that has a book value 6000000 to bank the transfer was made without deposit. Under this arrangement Company A transfers 600000 of receivable cash to a factor and the factor immediately releases cash equivalent to 10%

Require to prepare ledgers to record the above transaction