Business, 07.10.2021 08:00 risolatziyovudd

On 1/1/2019, Illini issued four-year, 5%, $300,000 face value bonds when the effective market rate (yield) for bonds of similar risk and maturity was 8%. Interest is paid semiannually on June 30 and December 31. Illini chose the fair value method. Effective Interest Cash Change Balance 1/1/2019 269,703 6/30/2019 10,788 7,500 3,288 272,991 12/31/2019 10,920 7,500 3,420 276,410 6/30/2020 11,056 7,500 3,556 279,967 12/31/2020 11,199 7,500 3,699 283,665 6/30/2021 11,347 7,500 3,847 287,512 12/31/2021 11,500 7,500 4,000 291,513 6/30/2022 11,661 7,500 4,161 295,673 12/31/2022 11,827 7,500 4,327 300,00 Required: 1. Due to changes in credit risk, the effective rate was 6% on 6/30/2019. Provide journal entries for 6/30/2019. 2. Due to change in general market conditions, the effective rate was 7% on 12/31/2019. Provide journal entries for 12/31/2019. 3. What was the effect of the bonds on the 2019 income

Answers: 3

Show answers

Another question on Business

Business, 22.06.2019 19:20

Sanibel autos inc. merged with its competitor vroom autos inc. this allowed sanibel autos to use its technological competencies along with vroom autos' marketing capabilities to capture a larger market share than what the two entities individually held. what type of integration does this scenario best illustrate? a. vertical b. technological c. horizontal d. perfect

Answers: 2

Answer

Business, 22.06.2019 20:00

Lillypad toys is a manufacturer of educational toys for children. six months ago, the company's research and development division came up with an idea for a unique touchscreen device that can be used to introduce children to a number of foreign languages. three months ago, the company produced a working prototype, and last month the company successfully launched its new device on the commercial market. what should lillypad's managers prepare for next? a. increased competition from imitators b. a prolonged period of uncontested success c. a sharp decline in demand for the product d. a difficult struggle to move from invention to innovation

Answers: 2

Answer

Business, 22.06.2019 20:30

Before the tools that have come from computational psychiatry are ready to be used in everyday practice by psychiatrics, what is needed

Answers: 1

Answer

Business, 23.06.2019 02:50

Dakota company experienced the following events during 2016. 1. acquired $30,000 cash from the issue of common stock. 2. paid $12,000 cash to purchase land. 3. borrowed $10,000 cash. 4. provided services for $20,000 cash. 5. paid $1,000 cash for utilities expense. 6. paid $15,000 cash for other operating expenses. 7. paid a $2,000 cash dividend to the stockholders. 8. determined that the market value of the land purchased in event 2 is now $12,700

Answers: 1

Answer

You know the right answer?

On 1/1/2019, Illini issued four-year, 5%, $300,000 face value bonds when the effective market rate (...

Questions