Solution 1a:
Computation of bond price | |||
Table values are based on: | |||
n= | 20 | ||
i= | 4.00% | ||
Cash flow | Table Value | Amount | Present Value |
Par (Maturity) Value | 0.45640 | $40,000.00 | $18,256 |
Interest (Annuity) | 13.59030 | $2,000.00 | $27,181 |
Price of bonds | $45,437 |
Solution 1b:
Journal Entries - Hartford research | |||
Date | Particulars | Debit | Credit |
1-Jan-17 | Cash Dr | $45,437.00 | |
To Bond Payable | $40,000.00 | ||
To Premium on Bond Payable | $5,437.00 | ||
(To record issue of bond at premium) |
Solution 2a:
Computation of bond price | |||
Table values are based on: | |||
n= | 20 | ||
i= | 5.00% | ||
Cash flow | Table Value | Amount | Present Value |
Par (Maturity) Value | 0.3769 | $40,000.00 | $15,076 |
Interest (Annuity) | 12.4622 | $2,000.00 | $24,924 |
Price of bonds | $40,000 |
Solution 2b:
Journal Entries - Hartford research | |||
Event | Particulars | Debit | Credit |
1-Jan-17 | Cash Dr | $40,000.00 | |
To Bond Payable | $40,000.00 | ||
(To record issue of bond at par) |
Solution 3a:
Computation of bond price | |||
Table values are based on: | |||
n= | 20 | ||
i= | 6.00% | ||
Cash flow | Table Value | Amount | Present Value |
Par (Maturity) Value | 0.3118 | $40,000.00 | $12,472 |
Interest (Annuity) | 11.4699 | $2,000.00 | $22,940 |
Price of bonds | $35,412 |
Solution 3b:
Journal Entries - Hartford research | |||
Event | Particulars | Debit | Credit |
1-Jan-17 | Cash Dr | $35,412.00 | |
Discount on issue of bond Dr | $4,588.00 | ||
To Bond Payable | $40,000.00 | ||
(To record issue of bond at discount) |
Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and...
Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations. Round your 'Present Value' answers to the nearest whole dollar.)...
Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $22.000 par value and an annual contract rate of 12 %, and they mature in 10 years. (Table B1 Table B.2. Table B.3, and Table B.4) (Use appropriate factorfe) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each of the following three separate situations....
Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $20,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1. Table B.2. Table 8.3. and Table B4 (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each of the following three separate situations. 1....
Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $24,000 par value and an annual contract rate of 8%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each of the following three separate situations. 1....
Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $31,000 par value and an annual contract rate of 12%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each separate situation. 1. The market rate at the...
Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $24,000 par value and an annual contract rate of 8%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each separate situation. 1. The market rate at the...
Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $21,000 par value and an annual contract rate of 10%, and they mature in 10 years. (Table B.1. Table B.2. Table B.3, and Table 8.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each separate situation. 1. The market rate at the...
Need help. can someone help me? Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $22,000 par value and an annual contract rate of 12%, and they mature in 10 years (able B1. Table B 2. Table B3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider each...
Kindly answer the following. Thank you so much!!! Hartford Research issues bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. The bonds have a $37,000 par value and an annual contract rate of 12%, and they mature in 10 years. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) from the tables provided. Round all table values to 4 decimal places, and use the rounded table values in calculations.) Required: Consider...
Hartford Research issues bonds dated January 1 that pay interest semiannually on June 30 and December 31. The bonds have a $40,000 par value and an annual contract rate of 10%, and they mature in 10 years. Required For each separate situation, (a) determine the bonds' issue price on January 1 and (b) prepare the journal entry to record their issuance. 1. The market rate at the date of issuance is 8%. 2. The market rate at the date of...