Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. quatro co. issues bonds dated january 1, 2015, wit

Quatro Co. issues bonds dated January 1, 2015, with a par value of $730,000. The...

90.2K

Verified Solution

Question

Accounting

Quatro Co. issues bonds dated January 1, 2015, with a par value of $730,000. The bonds annual contract rate is 12%, and interest 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 10%, and the bonds are sold for $767,042.

1. What is the amount of the premium on these bonds at issuance?

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

Amount repaid:

_______ payments of________

Par value maturity_________

total repaid 0

Less amount borrowed _______

Total bond interest expense $______

3. Prepare an amortization table for these bonds using the effective interest method to amortize the premium. (Enter all amounts positive values. Round all amounts to the nearest whole dollar.)

Semiannual Interest Period-End Cash Interest Paid Bond Interest Expense Premium Amortization Unamortized Premium Carrying Value
01/01/2013
06/30/2013
12/31/2013
06/30/2014
12/31/2014
06/30/2015
12/31/2015
Total

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

In the following figure estimate the slopes of all line segments If an answer is...

Calculus
Q

Lab 2 Cell Structure and Function. Post -Lab question. Would Ana animal cell be able to survive...

Medical Sciences
Q

In order to determine the rate of photosynthesis (the conversion by plants of carbon dioxide and...

Chemistry
Q

Two charges each +4 μC are on the x-axis, one at the origin and the other...

Physics
Q

A YDSE experiment is used to measure the wavelength of light used The distance between...

Physics
Q

particle q m enters at point A with velocity voj It moves through the electric...

Physics
Q

Question 13 Subtract 6 7 4 Next Question

Basic Math
Q

LAGER Ltd, a reputable company, listed on the stock exchange, has had the following balance...

Accounting
Q

CLICK HERE TO REVIEW LEARNING OBJECTIVES QUESTION 1 Not compiere Marked ut of 700 Fiag...

Accounting
Q

Based on the industry-low, industry-average, and industry-high values for the benchmarked data in each issue...

Accounting
Q

41. Big River Rafting pays $310,000 plus $15,000 in clusing cost to buy out a...

Accounting
Q

10. Calculate ROI if Sales = $105,000, Operating Expenses = $87,000 and Investment Turnover =...

Accounting