Homework Answers
| Answer | |||
| Journal Entries - Victor Corporation | |||
| Date | Particulars | Debit | Credit |
| 01-Jan | Cash Dr | $ 16,90,896 | |
| To Bond Payable | $ 15,80,000 | ||
| To Premium on Bond Payable | $ 1,10,896 | ||
| (To record issue of bond at premium) | |||
| Working | |||
| Computation of bond price | |||
| Table values are based on: | |||
| n= | 8 | ||
| i= | 3.00% | ||
| Cash flow | Table Value | Amount | Present Value |
| Par (Maturity) Value | 0.7894 | $ 15,80,000 | $ 12,47,252 |
| Interest (Annuity) | 7.01969 | $ 63,200 | $ 4,43,644 |
| Price of bonds | $ 16,90,896 | ||
| Please like ( positive Rating ) | |||
Add Answer to:
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000...
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,510,000...
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,510,000 and a coupon rate of 9 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the...
Please post step-by-step computations, thank you! On January 1 of this year, Victor Corporation sold bonds...
Please post step-by-step computations, thank you!
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)...
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,450,000 and a coupon rate of/ percent....
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,450,000 and a coupon rate of/ percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables...
Park Corporation is planning to issue bonds with a face value of $770,000 and a coupon...
Park Corporation is planning to issue bonds with a face value of $770,000 and a coupon rate of 7.5 percent. The bonds mature in 8 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and...
Park Corporation is planning to issue bonds with a face value of $2,600,000 and a coupon...
Park Corporation is planning to issue bonds with a face value of $2,600,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and...
Serotta Corporation is planning to issue bonds with a face value of $340,000 and a coupon rate of...
Serotta Corporation is planning to issue bonds with a face value of $340,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 4 percent (FV of $1, PV of S1,...
Park Corporation is planning to issue bonds with a face value of $2,700,000 and a coupon...
Park Corporation is planning to issue bonds with a face value of
$2,700,000 and a coupon rate of 9 percent. The bonds mature in 10
years and pay interest semiannually every June 30 and December 31.
All of the bonds were sold on January 1 of this year. Park uses the
effective-interest amortization method and also uses a premium
account. Assume an annual market rate of interest of 7.5 percent.
(FV of $1, PV of $1, FVA of $1, and...
Park Corporation is planning to issue bonds with a face value of $2,001,000 and a coupon...
Park Corporation is planning to issue bonds with a face value of $2,001,000 and a coupon rate of 10 percent. The bonds mature in 15 years and pay interest semiannually every June 30 and December 31. All of the Donds were sold onJnuary 1 of this year. Park uses the effective-interest amortization method and does not use a premium aCcount. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1. EVA of $1, and...
Ting Utilities is planning to issue bonds with a face value of $2,010,000 and a coupon...
Ting Utilities is planning to issue bonds with a face value of $2,010,000 and a coupon rate of 10 percent. The bonds mature in 15 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Ting uses the effective-interest amortization method and does not use a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1,...
Universal Foods issued 8% bonds, dated January 1, with a face amount of $160 million on...
Universal Foods issued 8% bonds, dated January 1, with a face
amount of $160 million on January 1, 2016. The bonds mature on
December 31, 2030 (15 years). The market rate of interest for
similar issues was 10%. Interest is paid semiannually on June 30
and December 31. Universal uses the straight-line method. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
Required:...
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,510,000 and a coupon rate of 9 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the...
Please post step-by-step computations, thank you!
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)...
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,450,000 and a coupon rate of/ percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables...
Park Corporation is planning to issue bonds with a face value of $770,000 and a coupon rate of 7.5 percent. The bonds mature in 8 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and...
Park Corporation is planning to issue bonds with a face value of $2,600,000 and a coupon rate of 10 percent. The bonds mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and...
Serotta Corporation is planning to issue bonds with a face value of $340,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bonds were sold on January 1 of this year. Serotta uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 4 percent (FV of $1, PV of S1,...
Park Corporation is planning to issue bonds with a face value of
$2,700,000 and a coupon rate of 9 percent. The bonds mature in 10
years and pay interest semiannually every June 30 and December 31.
All of the bonds were sold on January 1 of this year. Park uses the
effective-interest amortization method and also uses a premium
account. Assume an annual market rate of interest of 7.5 percent.
(FV of $1, PV of $1, FVA of $1, and...
Park Corporation is planning to issue bonds with a face value of $2,001,000 and a coupon rate of 10 percent. The bonds mature in 15 years and pay interest semiannually every June 30 and December 31. All of the Donds were sold onJnuary 1 of this year. Park uses the effective-interest amortization method and does not use a premium aCcount. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1. EVA of $1, and...
Universal Foods issued 8% bonds, dated January 1, with a face
amount of $160 million on January 1, 2016. The bonds mature on
December 31, 2030 (15 years). The market rate of interest for
similar issues was 10%. Interest is paid semiannually on June 30
and December 31. Universal uses the straight-line method. (FV of
$1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
(Use appropriate factor(s) from the tables
provided.)
Required:...
Most questions answered within 3 hours.
-
An imprest petty cash fund of $600 was established for minor
disbursements. At the end of...
asked 24 seconds ago -
Sharpe Cutter is a small company that produces specialty knives
for paper cutting machinery. The annual...
asked 4 minutes ago -
Calculating the Ka of a weak acid from
pH:
The pH of a 0.68M solution of...
asked 5 minutes ago -
1.What process is pushing back against gravity in the very
center (the core) of sun-like stars?...
asked 25 minutes ago -
This question is from the textbook "Python for ArcGIS" by Laura
Tateosian:
Write a script "triangles.py"...
asked 24 minutes ago -
Which of the following is an impediment that makes it
difficult for firms to achieve the...
asked 25 minutes ago -
Calculate the amount of heat needed to boil 123.g of octane
(C8H18), beginning from a temperature...
asked 33 minutes ago -
my
prof asked us to make a problem set then we find solve it
Chi-Square Test...
asked 40 minutes ago -
In recent years, 80% of those accused of Driving Under the
Influence (DUI) get convicted (includes...
asked 50 minutes ago -
Why does Max Weber distinguish between "power," "authority," and
different types of authority? What is he...
asked 50 minutes ago -
What would the solow growth model look like if there was a
production function which had...
asked 55 minutes ago -
A company project has an initial cost of $40,000, expected net
cash flows of $9,000 per...
asked 57 minutes ago