I'm working on some Accounting Homework right not that has me stumped a little bit. I thought I would finish it up before work at 3PM but couldn't figure it out. Is there anyone out there that could help me out? It's fairly simply stuff dealing with bonds that I just need to see someone do so I can fully understand the "how's" and "why's" of the situation.
If someone would be willing to do this out of the goodness of their heart, that would be great.
Otherwise, I am willing to offer monetary compensation via PayPal for a little tutoring help.
If you're interested, please message me via PM.
P2.
Sasina Corporation has $8,000,000 of 9.5 percent, 25-year bonds dated May 1, 2014, with interest payable on April 30 and October 31. The company's fiscal year ends on December 31, and it uses the straight-line method to amortize bond premiums or discounts. The bonds are callable after 10 years at 103, or each $1,000 bond is convertible into 40 shares of $10 par value common stock.
1.) Assume the bonds are issued at 103.5 on May 1, 2014.
a) How much cash is received?
b) How much is bonds payable?
c.) What is the difference between a and b called? How much is it?
d.) With regard to the bond interest payment on October 31st, 2014:
(1) How much is paid in interest?
(2) How much is the amortization?
(3) How much Is the interest expense?
2.) Assume the bonds are issued at 96.5 on May 1, 2014
a) How much cash is received?
b) How much is bonds payable?
c) What is the difference between a and b called, and how much is it?
d) With regard to the bond interest payment on October 31,2014
(1)How much cash is paid in interest?
(2) How much is the amortization?
(3) How much is the interest expense?
3.) Assume the issue price is requirement 1 and that the bonds are called and retired 10 years later.
a.) How much cash will have to be paid to retire the bonds?
b.) Is there a gain or loss on retirement, and if so, how much is it?
4.) Assume the issue price in requirement 2 and that the bonds are converted to common stock 10 years later:
a.) Is there a gain or loss on conversion, and if so, how much is it?
b.) How many shares of common stock are issued in exchange for the bonds?
c.) In dollar amounts, how does this transaction affect the total liabilities and the total stockholder' equity of the company? In your answer, show the effects on four accounts.
Template found here:
Link
EDIT:
If all goes well, there will most likely be more tutoring opportunities available.
If someone would be willing to do this out of the goodness of their heart, that would be great.
Otherwise, I am willing to offer monetary compensation via PayPal for a little tutoring help.
If you're interested, please message me via PM.
P2.
Sasina Corporation has $8,000,000 of 9.5 percent, 25-year bonds dated May 1, 2014, with interest payable on April 30 and October 31. The company's fiscal year ends on December 31, and it uses the straight-line method to amortize bond premiums or discounts. The bonds are callable after 10 years at 103, or each $1,000 bond is convertible into 40 shares of $10 par value common stock.
1.) Assume the bonds are issued at 103.5 on May 1, 2014.
a) How much cash is received?
b) How much is bonds payable?
c.) What is the difference between a and b called? How much is it?
d.) With regard to the bond interest payment on October 31st, 2014:
(1) How much is paid in interest?
(2) How much is the amortization?
(3) How much Is the interest expense?
2.) Assume the bonds are issued at 96.5 on May 1, 2014
a) How much cash is received?
b) How much is bonds payable?
c) What is the difference between a and b called, and how much is it?
d) With regard to the bond interest payment on October 31,2014
(1)How much cash is paid in interest?
(2) How much is the amortization?
(3) How much is the interest expense?
3.) Assume the issue price is requirement 1 and that the bonds are called and retired 10 years later.
a.) How much cash will have to be paid to retire the bonds?
b.) Is there a gain or loss on retirement, and if so, how much is it?
4.) Assume the issue price in requirement 2 and that the bonds are converted to common stock 10 years later:
a.) Is there a gain or loss on conversion, and if so, how much is it?
b.) How many shares of common stock are issued in exchange for the bonds?
c.) In dollar amounts, how does this transaction affect the total liabilities and the total stockholder' equity of the company? In your answer, show the effects on four accounts.
Template found here:
Link
EDIT:
If all goes well, there will most likely be more tutoring opportunities available.
Last edited by a moderator:
