1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ilya [14]
2 years ago
8

Federal Semiconductors issued 12% bonds, dated January 1, with a face amount of $100 million on January 1, 2018. The 20-year bon

ds sold for $105.477 million and mature in 2035. For bonds of similar risk and maturity the market yield was 11%. Interest is paid annually on December 31. Federal uses the effective interest method, and elected to report these bonds at their fair value. On December 31, 2018, the fair value of the bonds was $103.050 million (OTC market) because of an increase in the company’s financial risk.
a. Prepare the journal entry for the interest payment on December 31, 2018.




b. Calculate the PV of the remaining payments (CV of B/P) as of December 31, 2016 and prepare the journal entry to adjust the bonds to their fair value for presentation on the December 31, 2018 balance sheet.
FVadjustment acct
CV of B/P, 1/1/2018 $105,477,000 - $105,477,000 (MV) = (beginning bal)
2018 ____ amortization __________
CV of B/P, 12/31/2018 - $103,050,000 (MV) = (desired end bal)
increase/decrease

12/31/2018 JE: _________________________________________________

___________________________________________________


c. Assume that Federal has already recorded its 2019 interest payment and the fair value of the bonds on December 31, 2019 had increased to $107.200 million mainly because of a decrease in general interest rates. Calculate the PV of the remaining payments (CV of B/P) as of December 31, 2019 and prepare the journal entry to adjust the bonds to their fair value for presentation on the December 31, 2019 balance sheet.
FVadjustment acct
CV of B/P, 12/31/2018 - $103,050,000 (MV) = (beginning bal)
2019 ___ amortization __________
CV of B/P, 12/31/2019 - $107,200,000 (MV) = (desired end bal)
increase/decrease

12/31/2019 JE: _______________________________________________ ___________________________________________________
Business
1 answer:
Ostrovityanka [42]2 years ago
4 0
I don’t understand it
You might be interested in
If, at constant relative prices in a two-commodity and two-factor world, growth in a country’s labor force causes an expansion i
Aleks04 [339]

Answer:

Rybczynski theorem.

Explanation:

Rybczynski theorem is of the opinion that says that if the demand of some resource increases, the resultant effect will be for the industry that uses that resource most intensively to also increase its output while the other indus­try will decrease its output. Here, relative factor intensity is measured by the ratio of factor use in each industry.

The theory suggests that If, at constant relative prices in a two-commodity and two-factor world, growth in a country’s labor force causes an expansion in output of the labor-intensive good and a contraction in output of the capital-intensive good.

This implies that If two commodities (such as food and cloth) are not jointly produced, but are evenly matched, this relationship will entail that a growth in one factor, such as labour, acts as a force to cause an actual fall in the production of one commodity.

6 0
2 years ago
Read 2 more answers
Companies that fail to identify needs risk which of the following?
jonny [76]

Answer:

wasteful spending

Explanation:

:) hope it helps

6 0
2 years ago
Read 2 more answers
Which law provided billions of dollars to cities and states to build wastewater facilities?
lisov135 [29]

The answer is Clean Water Act. It is a U.S. federal law that controls the discharge of pollutants into the nation's surface waters. This act was initially known as the Federal Water Pollution Control Act. Also, this act is managed by the U.S. Environmental Protection Agency (EPA), which arranges water quality standards, handles implementation, and helps state and local governments advance their own pollution control plans. The federal government delivered billions of dollars in grants to back the building of sewage treatment facilities around the country. This act also necessitate businesses to apply for federal documents to discharge pollutants into water courses, as well as to decrease the amount of their discharges over time.

8 0
3 years ago
Marketing communicators should realize that other communication methods must receive careful consideration before _____ is autom
agasfer [191]

Answer:

<u>Mass Media Advertising </u>

Explanation:

Marketing communication refers to means of marketing the products such as advertising, sales promotion etc. It refers to how the product attributes are conveyed to the prospective customers.

Marketing communicators are the ones who undertake and decide upon marketing communication methods.

Mass media advertising means reaching out to wide masses by means of print media, visual  and audio marketing through television, audio marketing through radio.

Mass media advertising involves heavy expenditure and thus before opting for it, the marketing communicators should weigh in or consider other marketing communication modes as well.

5 0
2 years ago
According to the market theory of wage determination, under what circumstances will wages for a particular group be highest?
Dmitry_Shevchenko [17]

Answer:

When there is now demand for this type of labor

Explanation:

Hope this helps :))

4 0
3 years ago
Read 2 more answers
Other questions:
  • What is rent in personal finance ?
    10·1 answer
  • One method of evaluating the creativity of a team's ideas is looking at the fluency, flexibility, and originality of the ideas.
    14·1 answer
  • Wright Company's cash account shows a $28,900 debit balance and its bank statement shows $27,200 on deposit at the close of busi
    10·1 answer
  • You can now apply this analysis to production costs. For a U-shaped average total cost (ATC) curve, when the marginal cost curve
    7·1 answer
  • Girls between the ages of 8 and 15 are one of the growing markets for high-end shoe manufacturers, and podiatrists say the trend
    13·1 answer
  • A certain company just announced it will cut next year's dividends from $4 to $2.50 per share and use the extra funds to expand.
    7·1 answer
  • What are the company’s assets if the liabilities are $10,000 and the owner’s equity is $20,000?
    14·2 answers
  • Case X: Compute cash received from customers:
    5·1 answer
  • if 14.6 million people are unemployed, 155.5 million people are employed, and 7.9 million people are institutionalized, what is
    7·1 answer
  • When merchandise sold is assumed to be in the order in which the purchases were made, the company is using.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!