Hey buddy, Kindly have a look at the paper and get back to us in case of any clarification needed. If a revision is needed, kindly do not hesitate to request for the same. I am committed to ensuring you get quality and satisfactory work. Thank You! 😎1The Issues in the Case about the Company’s Bond Investments and EquipmentAuthor’s NameInstitution AffiliationCourseProfessor’s Name8th February 20212Issue 1: BondsBonds refer to a category of loan issued to a huge organization, such as a city, acompany, or a government. Based on the bond type, the organization might be required to paythe loaning party interest on the issued loan and eventually return the principal amount at thematurity date. Therefore, bonds are treated as a low-risk investment, as the principal amount isreturned to the bondholder once the bond matures. It is important to remember that bondshave an initial sale value known as face value, an interest rate known as coupon rate, and atermination date known as the maturity date.In the case of Virtually Perfect Corporation, the company had initially acquired itsbond on 1st July 2012 with a maturity value of $400,000 and a coupon rate of 10%. Thebond’s interest was paid semiannually on 1 st July and 1st January. Ideally, the bond wassupposed to mature on 1 st July 2020. According to the company, the bond was classified asamortized cost investment because it was supposed to be held to maturity. However, it isimportant to understand that when bonds are included on a balance sheet, they often act asloans and should be considered liabilities. On the Virtually Perfect Corporation’s balancesheet, the bond has been classified as amortized costs investment and included as an asset,while it is supposed to appear as a liability. Bonds appearing on the liability side are oftenbalanced out by the equipment purchased, which appear on the assets si…
15 Million Students Helped!
Sign up to view the full answer
Our customer is the center of what we do and thus we offer 100% original essays..
By ordering our essays, you are guaranteed the best quality through our qualified experts.All your information and everything that you do on our website is kept completely confidential.
Academicwritingcompany.com always strives to give you the best of its services. As a custom essay writing service, we are 100% sure of our services. That is why we ensure that our guarantee of money-back stands, alwaysRead more
The paper that you order at academicwritingcompany.com is 100% original. We ensure that regardless of the position you are, be it with urgent deadlines or hard essays, we give you a paper that is free of plagiarism. We even check our orders with the most advanced anti-plagiarism software in the industry.Read more
The Academicwritingcompany.com thrives on excellence and thus we help ensure the Customer’s total satisfaction with the completed Order.To do so, we provide a Free Revision policy as a courtesy service. To receive free revision the Academic writing Company requires that the you provide the request within Fifteen (14) days since the completion date and within a period of thirty (30) days for dissertations and research papers.Read more
With Academicwritingcompan.com, your privacy is the most important aspect. First, the academic writing company will never resell your personal information, which include credit cards, to any third party. Not even your lecturer on institution will know that you bought an essay from our academic writing company.Read more
The academic writing company writers know that following essay instructions is the most important part of academic writing. The expert writers will, therefore, work extra hard to ensure that they cooperate with all the requirements without fail. We also count on you to help us provide a better academic paper.Read more