Business
Understanding Financial Accounting
Hillier Electron Microscopes Inc. issued $85 million in eight-year bonds

Hillier Electron Microscopes Inc. issued $85 million in eight-year bonds to finance the expansion of its electron

Question:

Hillier Electron Microscopes Inc. issued $85 million in eight-year bonds to finance the expansion of its electron microscope manufacturing facility in Brantford, Ontario. The bonds pay 4% interest semiannually and were issued at 87.439 to yield 6%.

Required

a. Complete the following table and prepare the related journal entries for the first two interest payments.

Amortization of Bond Carrying Value of Balance of Bond Interest Payment Expense Interest Discount Bonds Date Discount Is

b. What is the carrying value of the bonds one year after issuance (that is, after the second semi-annual payment)?

Transcribed Image Text:

Amortization of Bond Carrying Value of Balance of Bond Interest Payment Expense Interest Discount Bonds Date Discount Issuance Payment 1 Payment 2

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

Step by Step Answer:

Answer rating: 90% (10 reviews)

a Date Interest Payment 4 1 Interest Expense 6 2 Amortization of Discount ...View the full answer

Answered By

Michael Owens

I am a competent Software Engineer with sufficient experience in web applications development using the following programming languages:- HTML5, CSS3, PHP, JAVASCRIPT, TYPESCRIPT AND SQL.

5.00+ 1+ Reviews 10+ Question Solved

Related Book For answer-question

Understanding Financial Accounting

ISBN: 9781119406921

2nd Canadian Edition

Authors: Christopher D. Burnley

See More Books

Question Posted: Jul 26, 2019 06:32 AM

See More Questions

Students also viewed these Business questions

Suppose MegaStore, Inc., signed a $750,000, 15-year, 10% note payable to finance the expansion of its business on January 1, 2010. The terms provide for semiannual payments of $49,000 on June 30 and...
Frank Suit Ltd. designs and manufactures anti-gravity suits used by air force pilots and astronauts for space travel. To finance the expansion of its manufacturing operations, the company, in...
The Decadent Ice Cream Company signed a $250,000, 15-year, 9% note payable to finance the expansion of its business on January 1. The terms provide for semiannual payments of $15,350 on June 30 and...
Mick Stone disposed of the following assets during tax year 2020-21: (1) On 19 May 2020, Mick sold a freehold warehouse for 522,000. This warehouse was purchased on 6 August 2008 for 258,000, and was...
Polynomial Dimensions: Find the dimension of the subspace of P3 spanned the subset in Problems 1-2? 1. {t, t - 1} 2. {t, t - 1, t2 + 1} 3. {t2, t2 - t - i, t + 1}
The Cakes.xlsx file contains for each month the number of salespeople and revenue for a bakery. Create a combination chart with a secondary axis to summarize the monthly number of salespeople and...
After the positrons were annihilated, the energy density of the universe was dominated by the photons and the neutrinos. Show that the energy density in that era was given by \(u_{\text {total...
Lee Werner is general manager of Stoneybrook Salons. During 2016, Werner worked for the company all year at a $ 14,000 monthly salary. He also earned a year-end bonus equal to 15% of his annual...
6. MAC =9 The use of energy is one of the major causes of pollution and greenhouse gases that lead to climate change. It is desirable to reduce the emissions from energy use. Suppose there are two...
In March 2011, Mary Tone organized a corporation to provide package delivery services. The company, called Tone Deliveries, Inc., began operations immediately. Transactions during the month of March...
Cansat, a Crown corporation owned by the government, issued bonds to finance the construction of the next generation of observation satellites. On January 1, 2020, Cansat issued 7%, 15-year bonds...
MUHC Ltd. leased a microsurgical staple gun on January 1, 2020, from George Klein Surgical Equipment Ltd. The three-year lease contract called for monthly payments of $10,870 to be made at the end of...
The Cascades Swim Club has 300 shareholders, each holding one share of stock in the club. A share of club stock allows the shareholders family to use the clubs heated outdoor pool during the summer...
make Junit tests for my code but i'm a bit confused on how to do it. My code makes an empty singly linked list and you can add items to the head or tail. my code: public class practice { // = a...
What is one advantage of the Hawala system of exchanging money? It is based on trust. It keeps a record. It does not allow for bartering. It allows for payment of taxes
ABC Company is planning to purchase an equipment. The purchase price of the equipment is $375,000. The company plans to make a down payment of 29% of the first cost, and for the remainder of the cost...
I've called the management team together to discuss the current economic climate and the decrease in funding streams. As the executive director, it's my responsibility to inform everyone that our...
solve the following - 4/5 1/5 2x +4x
Blue Dingo uses a standard costing system. The company's standard costs and variances for direct materials, direct labor, and factory overhead for the month of May are as follows. Determine the...
Refer to the situation described inBE 18-13, but assume a 2-for-1 stock split instead of the 5% stock dividend. Prepare the journal entry to record the stock split if it is to be effected in the form...
VI Timber Ltd. (VITL), a public company, purchased it first piece of low impact harvesting equipment on November 5, 2022, at a cost of $480,000. At the time of purchase, VITLs management determined...
Briefly explain the disadvantage of following the asset adjustment approach under the revaluation model.
Jeanmich Ltd. (JL), a public company, purchased a warehouse on January 8, 2022. The company paid $5.6 million. The land was valued at $1 million and the warehouse building was valued at $4.6 million...
Given the info below answer the question Inventory 12/31/25 $60,100 Cost of Goods Sold $221,463 Common Stock 74,510 Selling Expenses 15,783 Retained Earnings 45,810 Administrative Expenses 37,696...
Greyson Construction has the following account balances at the end of the e year. Accounts Equipment Accounts payable Salaries expense Common stock Land Notes payable Service revenue Balances $24,500...
A. Determine the internal forces at sections C, D1 and D2 2kN/m k 2m C 4m Figure 2 e=0.2m 8kN B D D 2m B. Construct bending moment diagram of the beam shown in figures 15kN 4kN/m B D F E (1) (2)...

A Governance Framework For Climate Relevant Public Investment Management 1st Edition - ISBN: 9292706071 - Free Book

Study smarter with the SolutionInn App