|
|
|
|
|
|
BMW Garage | BMW Meets | Register | Today's Posts | Search |
|
BMW 3-Series (E90 E92) Forum
>
Accounting Help....!!
|
|
05-19-2009, 11:49 AM | #1 |
First Lieutenant
50
Rep 372
Posts |
Accounting Help....!!
First question:
Face value of bond is $2,000,000, 8% semi-annually, 10 years. Sold at a discount of $1,940,000 on July 1, 2000. Redeemed the whole bond on July1, 2006 at 101. Discount amortized on a straight-line. Can someone help me solve for the loss on redemption? The second question:capital lease Lease an item for $800,000 with no residual value, on July 1, 2008. Lease term is 4 years. Economic life is 8 years. Payments due on June 30 of each year. Payment is: $45,000. Implicit interest known by lessee is 8%. Record the transaction for the lessee on July 1, 2008 and December 1, 2008. Thanks in advance. |
05-19-2009, 05:02 PM | #3 |
First Lieutenant
17
Rep 306
Posts |
people use the straight line method? hopefully i get this right since i just took FAR.
find the carrying value on 7/1/2006 and subtract them from 2mm * 1.01. things you would need to know to find the CV: -since the bond is straight line, amortize the discount (face minus purchase price) over 20 periods. -find the value of the coupon.. 2mm*4%. you should be able to figure out the rest.. for the second.. you should find the present value of the minimum lease payments.. using the implicit rate. that will be your lease liability and the value you put the leased asset on the book. use the effective interest method to find your december journal entry. don't forget to record annual depreciation at 12/31. since there is no bargain purchase option, depreciate the asset over the lease term. also, accrue interest at 12/31. |
Appreciate
0
|
05-19-2009, 05:36 PM | #4 | |
Banned.....j/k
28
Rep 174
Posts |
Quote:
__________________
|
|
Appreciate
0
|
05-19-2009, 07:16 PM | #5 |
blahhh
311
Rep 6,355
Posts |
i don't even remember it and I'm going on to my senior year of college with a accounting major. I mean i know all the basic crap but stuff like this i need a text book to refresh my memory or at least a outline
|
Appreciate
0
|
05-19-2009, 08:23 PM | #6 |
Banned
233
Rep 3,030
Posts |
+1.. except, I'm an econ major + business- entrepreneurship, management minor. Makes me question whether or not the $200,000 for that piece of paper was worth it haha!!
|
Appreciate
0
|
Bookmarks |
|
|