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Lana71 [14]
3 years ago
15

Stanford issues bonds dated January 1, 2015, with a par value of $500,000. The bonds' annual contract rate is 9%, and the intere

st is paid semiannually on June 30 and December 31. The bonds mature in three years. The annual market rate at the date of issuance is 12%, and the bonds are sold for $463,140.
1. What is the amount of the discount on these bonds at issuance?

2. How much total bond interest expense will be recognized over the life of these bonds?

3. Prepare the amortization of the bond discount for the first payment period, using the effective interest method to amortize the discount.
Business
1 answer:
sveta [45]3 years ago
6 0

Answer:

Explanation:

Discount on bond = Par value of bond - Issued price of bond = 500,000-463,140=36,860

2)

500,000*0.09 = 45,000

22,500 semiannually

Amount repaid:

Six payments (22500*6)  135,000

Add: Maturity value 500,000

Total amount repaid 635,000

Less: Amount borrowed (463,140)

Total bond interest 171,860

Total bond interest expense recognized 171,860

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An aging of a company's accounts receivable indicates that $8400 are estimated to be uncollectible. If Allowance for Doubtful Ac
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Based on the information given, the bad debt expense will be:

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Based on the above, the journal entry will be:

Debit Bad debt expense $3580

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Which social network has more than 410 million registered members and because of that popularity, more than 4 million companies
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The social media platform with more than 410 million people registered is Linkedin

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Answer:

<em>a. Housing prices are down. </em>

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Read 2 more answers
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