Explore BrainMass

Explore BrainMass

    Cardinals Company Financial Calculations

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Cardinals Co issued $900,000 of 8%, 4-year bonds on 6/1/05 at {96} plus accrued interest. The bonds mature on 3/1/09, and pay interest each 3/1 and 9/1. The straight line method is used to amortize any discount or premium.

    Compute the
    1) amt of interest expense reported FYE 12/31/05
    2) balance of the discount account at 12/31/05
    3) carry value of the bond at 12/31/06

    (CLUE: Carry Value on 12/31/07 must match $888,800.)

    © BrainMass Inc. brainmass.com June 3, 2020, 6:15 pm ad1c9bdddf

    Solution Summary

    The Cardinals Company financial calculations are determined. The AMT of interest expense reports are provided.