On january 1 2013 piper co issued ten-year bonds with a, Ask an Expert

Accounting

On January 1, 2013, Piper Co. issued ten-year bonds with a face value of $4,000,000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are:

Present value of 1 for 10 periods at 10% 386
Present value of 1 for 10 periods at 12% 322
Present value of 1 for 20 periods at 5% 377
Present value of 1 for 20 periods at 6%312
Present value of annuity for 10 periods at 10%6.145
Present value of annuity for 10 periods at 12%5.650
Present value of annuity for 20 periods at 5%12.462
Present value of annuity for 20 periods at 6%11.470

(a) Calculate the issue price of the bonds.

(b) Without prejudice to your solution in part (a), assume that the issue price was $3,536,000. Prepare the amortization table for 2013, assuming that amortization is recorded on interest payment dates.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9962326

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - the company uses pre-numbered purchase orders

Question - The company uses pre-numbered purchase orders. Only the Purchase Manager is able to use and authorize the purchase orders. Once the purchase order has been sent to a supplier, a copy is given to the accounting ...

Question instructions first locate the financial statement

Question: Instructions: First, locate the financial statement (10 - K Annual Reporting) information for each company (listed below) that you will be investigating for your final project. This information can be found on ...

Question - a guy doing software coding a company offers him

Question - A guy doing software coding. A company offers him $100,000 as contract to have the right to use his in their procurement software package. The right of use is up to 10,000 packages, if the procurement sells mo ...

Revenue recognition - midwest health club mhc offers 1-year

Revenue Recognition - Midwest Health Club (MHC) offers 1-year memberships. Membership fees are due in full at the beginning of the individual membership period. As an incentive to new customers, MHC advertised that any c ...

Question - greg corp prepares its financial statements

Question - Greg Corp. Prepares its financial statements under U.S. GAAP Tina prepares its financial statements under IFRS. You have gained the following insights: Greg and Tina are the same company except they use differ ...

Question - based on the loan amortization table1 whats the

Question - Based on the loan amortization table 1) What's the current and long-term liability that would appear on the Dec. 31, 2016 Balance sheet? 2) What's the interest expense for 2017? 3) What's the current and long- ...

Question - the records of riverbeds boutique report the

Question - The records of Riverbed's Boutique report the following data for the month of April. Sales revenue$100,100 Purchases (at cost) $47,400 Sales returns 1,900 Purchases (at sales price) 95,300 Markups 9,500 Purcha ...

Question - pharoah company traded a used welding machine

Question - Pharoah Company traded a used welding machine (cost $10,260, accumulated depreciation $3,420) for office equipment with an estimated fair value of $5,700. Pharoah also paid $3,420 cash in the transaction. Prep ...

Question - wilson carver knives uses process costing in its

Question - Wilson Carver Knives uses process costing. In its Cutting Department, all the materials are added at the beginning of the process and conversion costs are added evenly during the processing. During the first m ...

Assessment task select two public limited companies listed

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 go to the Investor Relations secti ...

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 Accounting Basics Expert