Posted: 4/19/2005 11:30:41 AM EDT
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Could really use some help with this extra credit homework. Professor said that she would give us bonus points if we could do this because we have not done it in class. Please help because I dont know shit about working with bonds. Problem #1: Frontier Inc. produces and sells voltage regulators. On July 1, 2005, Frontier Inc. issued $20,000,000 of ten-year, 11% bonds at a market rate of interest of 10%. Interest on bonds is payable semiannually on December 31 and June 30. The calender year is the fiscal year. 1. Calculate the cash proceeds of the bond issue. Journalize the entry to record the amount of the cash proceeds from the sale of the bonds. 2. Journalize the entries to record the following a. the first semiannual interest payment on December 31, 2005. Please include the amortization of the bond premium, using the straight line method. b. The interest payment on June 30, 2006. Problem #2 On July 1, 2005, Lamar Communications Equipment Inc. issued $18,000,000 of ten year, 9% bonds at a market interest rate of 10%. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year is the calendar year. 1. Calculate the cash proceeds of the bond issue. Journalize the entry to record the amount of the cash proceeds. 2. Journalize the entries to record the following: a. the first semiannual interest payment on December 31, 2005. Please include the amortization of bond discount using the straight line method. b. The interest payment on June 30, 2005. |
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The "credit" part in the phrase "extra credit" assumes YOU did the work. What do you think this is - ENron???  garandman, CPA P.S. you got an acctg textbook, right?? CRACK IT OPEN!!!!!!!!!!!  Its a fairly simply calculation (which even I would have to open my textbook to remember how to do)  |
That makes me feel better about not knowing how to do it (off the top of my head) as I am pursuing my accounting degree! |
95% of the crap you'll learn in class you'll never use. You ONLY need to remember it long enuf to pass the Exam. COllege is about learning HOW to think and process information - not about learning technical crap. When I look back at my accounting texts now, I wonder "Why in teh world was that so tough back when I was in school?" |
| well i have been going over problems in the book and reading through the chapter but i still am lost. I have never done a problem like this and I dont think i am going to be able to learn it on my own. i have been at it for a couple of hours and I still dont have any progress. |
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http://www.swcollege.com/vircomm/gita/gita08-3_main.html Keep it "unhot". This may help understand the process.... It's pretty fuzzy in my mind anymore. I'm also an accountant, but I don't deal with bond issuance. I spend most of my time with intercompany transactions. |
YOu are right. I have no ethics because I asked for help with a problem I do not know how to do. What is this world comming too with kids like me going around asking questions about things they do not understand. Shame on me. But seriously, please reply only if you have some info that is useful. Do not reply to this thread so you can display yourself as morally better than others. That is a boring ticket to play. Thank you to all that posted info that is helpful |
that page helped but alot of the calculations are blurred and cannot be read. |
It's because they are conditioned by the school systems in the country: "failure is baaaad, resourcefulness is baaad". They think it's better to find it yourself or get an F. Those better at rote may succeed in college, but those who are not afraid to fail, then ask for help and use other resources are the people in this country who amass 8 figure net worths. |
Could not have said it better myself. |
Good luck with that attitude. |