Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. when companies offer new debt security issues, the

When companies offer new debt security issues, they publicize the offerings in the financial press...

50.1K

Verified Solution

Question

Accounting

When companies offer new debt security issues, they publicize the offerings in the financial press and on Internet sites. Assume the following were among the debt offerings reported in December 2021:

New Securities Issues
Corporate
National Equipment Transfer Corporation$213 million bonds via lead managers Second Tennessee Bank N.A. and Morgan, Dunavant & Co., according to a syndicate official. Terms: maturity, Dec. 15, 2030; coupon 7.59%; issue price, par; yield, 7.59%; noncallable; debt ratings: Ba-1 (Moody's Investors Service, Inc.), BBB+ (Standard & Poor's).
IgWig Inc.$363 million of notes via lead manager Stanley Brothers, Inc., according to a syndicate official. Terms: maturity, Dec. 1, 2032; coupon, 6.34%; Issue price, 99; yield, 6.44%; call date, NC; debt ratings: Baa-1 (Moody's Investors Service, Inc.), A (Standard & Poor's).

Required: 1. Prepare the appropriate journal entries to record the sale of both issues to underwriters. Ignore share issue costs and assume no accrued interest. 2. Prepare the appropriate journal entries to record the first semiannual interest payment for both issues.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

4 A container of square base of dimension 10 cm 10 cm and of sufficiently...

Physics
1.2K views

A dielectric slab of thickness d 2 and dielectric constant 2 is inserted in capacitor...

Basic Math
1.2K views

Solve the following equation using the quadratic formula.5x ? 8x=4*****Points: 0 of 1Next questionThe solution...

Statistics
1.2K views

Consider the following joint pdf s for the random variables X and Y Circle the...

Algebra
1.2K views

Twice a number increased by 5 is greater than 3 times the number deceased by...

Accounting
1.2K views

6. Sanix Inc. manufactures two types of disinfectants: Sanix Wipes (SW) and Sanix...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] ...

Accounting
1.2K views

Defence Electronics Inc. B Defence Electronics Inc. f information appears to be missing, change the...

Accounting
1.2K views

1.) What is the implication of an efficient securities market for the return an investor...

Accounting
1.2K views

During a year, Mark's monthly sales compensation ranged between $20,500 and $27.900 per month and...

Accounting
1.2K views

Following are the budgeted income statements for the second quarter of 2016 for SeaTech, Inc.:...

Accounting
1.2K views

You had the fundraising idea of operating a booth to sell soft drinks, coffee, croissants,...