Assume that the following are independent situations recently reported in the Wall Street Journal. 1. General...
Assume that the following are independent situations recently reported in the Wall Street Journal.
1. General Electric (GE) 7% (contractual rate) bonds, maturing January 28, 2018, were issued at 111.12.
2. Boeing 7% (contractual rate) bonds, maturing September 24, 2032, were issued at 99.08.
Instructions
(a) Were GE and Boeing bonds issued at a premium or a discount?
(b) Explain how bonds, both paying the same contractual interest rate, could be issued at different prices.
(c) Prepare the journal entry to record the issue of each of these two bonds, assuming each company issued $800,000 of bonds in total.
Homework Answers
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Assume that the following are independent situations recently
reported in the Wall Street Journal.
1. General...
Asume that the following are independent situations recently reported in the Wall Street Journal. 1 General...
Asume that the following are independent situations recently reported in the Wall Street Journal. 1 General Electric (GE) 7% bonds, maturing January 28, 2023, were issued at 111.80. 2. Boeing 7% bonds, maturing September 24, 2037, were issued at 98.90. Your answer is correct. Were GE and Boeing bonds issued at a premium or a discount? The General Electric bonds were issued at a premium and the Boeing bonds were issued at a discount ! eTextbook and Media List of...
Please help me answer BUS201-Financial Accounting (U-Term) Chapter 10 Class Exercises 1. On May 1, Redhead...
Please help me answer
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Asume that the following are independent situations recently reported in the Wall Street Journal. 1 General Electric (GE) 7% bonds, maturing January 28, 2023, were issued at 111.80. 2. Boeing 7% bonds, maturing September 24, 2037, were issued at 98.90. Your answer is correct. Were GE and Boeing bonds issued at a premium or a discount? The General Electric bonds were issued at a premium and the Boeing bonds were issued at a discount ! eTextbook and Media List of...
Please help me answer
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1.) Assume that this is the Wall Street Journal listing for the
trading day June 15, 2005. For the above T-Bond, calculate the ask
yield.
2.) If the tax rate were 40%, what would be the coupon rate for
an equivalent corporate bond?
3.) If the difference between what broker receives when she
sells the bond and when she buys the bond is $3.13, what is the bid
quote?
(I'm not understanding on how to calculate these problems. There
were...
please answer the following questions.
(journal entries)
1. On July 1, 2013. Avery Services issued a 4% long-term note payable for S10,000. It is payable over a 5-year term in $2,000 principal installments on July 1 of each year. Each yearly installment will include both principal repayment of $2,000 and interest payment for the preceding one-year period. Please provide the journal entry needed on July 1, 2014 when the first installment payment is made. (4 points) 2. Paris Company buys...
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