On 1st january 2011 piper co issued 10-year bonds with a, Ask an Expert

Accounting

On 1^st January, 2011, Piper Co. issued 10-year bonds with a face value of $1,000,000 and a stated interest rate of 10 percent, payable semi-annually on June 30 and 31^st December. The bonds were sold to yield 12%. Table values are:

Current value of 1 for 10 periods at 10% .386

Current value of 1 for 10 periods at 12% .322

Current resent value of 1 for 20 periods at 5% .377

Current value of 1 for 20 periods at 6% .312

Current value of annuity for 10 periods at 10% 6.145

Current value of annuity for 10 periods at 12% 5.650

Current resent value of annuity for 20 periods at 5% 12.462

Current resent value of annuity for 20 periods at 6% 11.470

Instructions:

- Evaluate the issue price of the bonds.

- Without prejudice to your solution in Part (a), suppose that the issue price was $884,000. Prepare the amortization table for 2011; consider that amortization is recorded on interest payment dates.

View complete question

Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9721210

Have any Question?Write your Review or question?

Related Questions in Financial Accounting

An investment offers 6800 per year with the first payment

An investment offers $6,800 per year, with the first payment occurring one year from now. The required return is 7 percent. a. What would the value be today if the payments occurred for 20 years? b. What would the value ...

Establish and maintain accounting info systems and provide

Establish and maintain accounting info systems and Provide management accounting information Assignment - Assignment 1 - Case Studies Case Study 1 - Review the case study information below and complete the steps mentione ...

In its first year of operations cullumber company

In its first year of operations, Cullumber Company recognized $31,800 in service revenue, $6,600 of which was on account and still outstanding at year-end. The remaining $25,200 was received in cash from customers. The c ...

Part adbm financial solutionsyou are a financial consultant

Part A DBM Financial Solutions You are a financial consultant working with DBM Financial Solutions and have a portfolio of clients you work with in achieving financial management solutions. Client 1- Manhattan Limited Yo ...

The ipl just signed sachin to a contract consisting of

The IPL just signed Sachin to a contract consisting of eight, end-of-year payments worth $9 million each, with the first payment precisely one year from today. On the other hand, Dhoni recent deal calls for six annual pa ...

Corporate accounting assignment -assessment task -select

Corporate Accounting Assignment - Assessment task - Select two public limited companies listed on the Australian Securities Exchange (ASX) that are in the same industry. Go to the website of your selected companies. Then ...

Asset retirement obligation changes in estimate versus

Asset Retirement Obligation, Changes in Estimate versus Errors, Writing an Issues Memo Facts: Mega¬Corp's corporate headquarters, built in 1970, has asbestos in its insulation. The Company's financial statements reflect ...

Company a is a calendar year company that depreciates all

Company A is a calendar year company that depreciates all its machinery on a straight-line basis. On January 1, 2016, the company purchased machinery costing $100,000, with an estimated useful life of 10 years and a zero ...

Accounting for decision makingquestion discuss the five key

Accounting for decision making. Question: Discuss the five key forces to consider when analyzing an industry. How do these forces impact the balanced scorecard? Reply to the discussion which are attached. Discussion: For ...

Question 1 an organization owes pound300000 tax at 17x4 and

Question 1 . An organization owes £300,000 tax at 1.7.X4 and £450,000 at 30.6.X5. Its income statement for the year to 30.6.X5 includes a tax charge of £400,000. How much tax was actually paid in the year to 30.6.X5?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Financial Accounting Expert