On September 1, 2020, Messner Corp. issued a $400,000, 15%, four-year bond. Interest is payable semiannually beginning

Question:

On September 1, 2020, Messner Corp. issued a $400,000, 15%, four-year bond. Interest is payable semiannually beginning March 1, 2021.

Required

a. Calculate the bond issue price assuming a market interest rate of 13.5% on the date of issue.

b. Using the effective interest method, prepare an amortization schedule similar to Exhibit 14.15.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Fundamental Accounting Principles Volume II

ISBN: 978-1260305838

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

See More Books

Question Posted: Dec 18, 2019 05:10 AM

See More Questions

Major Communications Ltd., a publicly traded company that specializes in data capture, has been in operation for several years. On October 1, 2019, it had 10 million common shares authorized and 1.5...
In 2019, Chirac Enterprises issued, at par, 60 $1,000, 8% bonds, each convertible into 100 shares of common stock. Chirac had revenues of $17,500 and expenses other than interest and taxes of $8,400...
On March 1, 2020, Quinto Mining Inc. issued a $600,000, 8%, three-year bond. Interest is payable semiannually beginning September 1, 2020. Required Part 1 a. Calculate the bond issue price assuming a...
Compute the length of the curve traced by r(t) over the given interval. r(t)= (t cos t, t sint, 3t), 0t 2
How many ways are there to distribute six indistinguishable balls into nine distinguishable bins?
A steel container of volume 0.35 L can withstand pressures up to 88 atm before exploding. What mass of helium can be stored in this container at 299 K?
Redesign the fractionator of Example 6.8 for a reflux ratio that is twice the minimum. Determine the diameter of the tower, the height of packing in the stripping and rectifying sections, and the...
On January 1, 2014, Dixon Corporation had the following stockholders equity accounts. Common Stock ($4 par value, 250,000 shares issued and outstanding) .....$1,000,000 Paid-in Capital in Excess of...
B2: Export Subsidy Consider a hypothetical market for alpaca wool socks in Peru. Assume the domestic supply and domestic demand for sweaters are respectively given by and Qs = 10+5P QD = 100 - 4P...
For a normal random variable with mean 19,500 and standard deviation 400, find a point of the distribution such that the probability that the random variable will exceed this value is 0.02.
On June 1, 2020, JetCom Inventors Inc. issued a $540,000, 12%, three-year bond. Interest is to be paid semiannually beginning December 1, 2020. Required a. Calculate the issue price of the bond...
Extra Gold Corporation had a $1,270,000, 6% bond available for issue on September 1, 2020. Interest is to be paid quarterly beginning November 30. All of the bonds were issued at par on October 1....
HiLo, Inc., doesnt face any taxes and has $100 million in assets, currently financed entirely with equity. Equity is worth $7 per share, and book value of equity is equal to market value of equity....
Mrs. Wilson is president of her own beauty products company. The company creates make-up products and sells them online. She is ambitious! She wants her company to become a big player in the make-up...
Write an algorithm to reverse the elements of a stack using the stack's basic operations(push and pop).
You are the head of Corporate Communication in your organization/institution and as a strong advocate for the use of technology in business communication, you are dissatisfied with the pace at which...
You are president of a company that refurbishes rollers for presses used to print newspapers. Because the Internet has cut into newspaper circulation, your business is down considerably and it may be...
Come up with a report and link the analysis with the terms learned from the textbook or lectures. For example, you could answer the following questions: What is the main objective of the reform? How...
An inexperienced bookkeeper prepared the following trial balance. Prepare a correct trial balance, assuming all account balances are normal. ERIKA COMPANY Trial Balance December 31, 2019 Debit Credit...
All of the following assets can be depreciated, except: (a) A bulldozer (b) A copper mine (c) A surgical robot (d) A conveyor belt
Rainmaker Environmental Consultants is just finishing its second year of operations. The company?s unadjusted trial balance at October 31, 2020, follows. Rainmaker prepares adjustments each October...
Club 17X Fitness prepares financial statements on an annual basis and has a December 31 year-end. On October 1, 2020, Club 17X sells a one-year prepaid gym membership for $300 cash. a. Record the...
On November 1, 2020, Race Car Repairs collected $12,000 from a customer for services to be provided in the future. On December 31, 2020, Race Car Repairs year-end, it was determined that $3,000 of...
What are the key considerations and challenges involved in implementing a distributed database system with respect to data partitioning, replication strategies, and concurrency control mechanisms?
You have recently started work as a management accountant at Zilber Hotels, reporting to the financial controller. Draft management accounts have been prepared for the year just finished, and the...
On June 30, the end of the first month of operations, Tudor Manufacturing Co. prepared the following income statement, based on the variable costing concept: Sales (70,000 units) Variable cost of...

On September 1, 2020, Messner Corp. issued a $400,000, 15%, four-year bond. Interest is payable semiannually beginning

Question:

Step by Step Answer:

a Calculator keystrokes n 4 years x 2 periods per year 8 FV 400000 PMT 30000 calculated as 4...View the full answer

Fundamental Accounting Principles Volume II

Students also viewed these Business questions