Homework Answers
Answer-a:
Price of bond = 20000000/1.016^30+20000000*1.5%*(1.016^30-1)/(0.016*1.016^30) = $ 19,526,423
Answer-b:
Answer-c:
Add Answer to:
Problem 4 On December 31, 20x0, an entity issues bonds with the following characteristics: Face Value...
Problem 5 On January 31, 20x1, an entity issues bonds with the following characteristics: Face Value...
Problem 5 On January 31, 20x1, an entity issues bonds with the following characteristics: Face Value Coupon rate Yield to maturity Bonds dated Maturity Coupon payment dates $20,000,000 5% 4.6% December 31, 20x0 December 31, 20x20 Jun 30, Dec 31 Required - Write the journal entries for this bond for the year 20x1.
Problem 4 On February 15, 20x1, the Claudio Corporation issues $10,000,000 of 4.3% bonds. The bonds...
Problem 4 On February 15, 20x1, the Claudio Corporation issues $10,000,000 of 4.3% bonds. The bonds were dated December 31, 20x0, and are due on December 31, 20x15. The bonds were issued to yield 4.6% and pay interest semi-annually on June 30 and December 31, Required - Prepare all journal entries relative to this bond issue for the year ended December 31, 20x1. Problem 3 On December 31, 20x0, the Einaudi Corporation issues $4,000,000 of 5% bonds. The bonds are...
Pretzelmania, Inc., Issues 5%, 10 year bonds with a face amount of $56.000 for $56,000 on...
Pretzelmania, Inc., Issues 5%, 10 year bonds with a face amount of $56.000 for $56,000 on January 1, 2021 The market interest rate for bonds of similar risk and maturity is 5% Interest is paid semiannually on June 30 and December 31 Required: 1.8 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select No Journal Entry Required in the first account field.) View fractionat Journal entry...
Woodwick Company issues 6%, five-year bonds, on December 31, 2017, with a par value of $102,000...
Woodwick Company issues 6%, five-year bonds, on December 31, 2017, with a par value of $102,000 and semia payments. Semiannual Period-End (0) 12/31/2017 (1) 6/30/2018 (2) 12/31/2018 Unamortized Premium $8,151 7,336 6,521 Carrying Value $110,151 109,336 108,521 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on December 31, 2017, (b) The first interest payment on June 30, 2018. (c) The second interest payment on December 31, 2018. View transaction...
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000,...
On January 1, 2018, Methodical Manufacturing issued 100 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 4.25 percent, so the total proceeds from the bond issue were $102,070. Methodical uses the effective-interest bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare...
Problem 2 On December 31, 20x0, Herman Corporation purchased bonds of another company. The bonds had...
Problem 2 On December 31, 20x0, Herman Corporation purchased bonds of another company. The bonds had a face value of $400,000, mature on December 31, 20x10, and pay a coupon rate of 3% semi-annually on June 30 and Dec 31. The bonds were yielding 3.3% on the date of purchase. On December 31, 20x 1 and 20x2 the bonds are trading at 96 and 97 respectively. On January 2, 20x3, the bonds are sold at 98.5. Required - Prepare all...
Dobbs Company issues 5%, two-year bonds, on December 31, 2019, with a par value of $105,000...
Dobbs Company issues 5%, two-year bonds, on December 31, 2019, with a par value of $105,000 and semiannual interest payments. Unamortized Discount Semiannual Period-End Carrying Value (0) 12/31/2019 (1) (2) 12/31/2020 (3) (4) 12/31/2021 $98,900 100,425 101,950 103,475 105,000 $6,100 4,575 3,050 1,525 6/30/2020 6/30/2021 0 Use the above straight-line bond amortization table and prepare journal entries for the following. Required: (a) The issuance of bonds on December 31, 2019 (b) The first through fourth interest payments on each June...
At 31 December 20X8, Northern Resources Ltd. reports the following on its statement of financial position:...
At 31 December 20X8, Northern Resources Ltd. reports the following on its statement of financial position: Bonds payable, 4%, interest payable semi-annually on 30 June and 30 December $ 9,400,000 Discount on bonds payable 470,000 $ 8,930,000 The effective interest rate, or market interest rate, was 6% on issuance. On 1 March 20X9, 30% of the bond issue was bought back in the open market and retired at 101 plus accrued interest. The following table relates to 20X9 (numbers have...
On January 1, 2018, Loop Raceway issued 700 bonds, each with a face value of $1,000,...
On January 1, 2018, Loop Raceway issued 700 bonds, each with a
face value of $1,000, a stated interest rate of 6 percent paid
annually on December 31, and a maturity date of December 31, 2020.
On the issue date, the market interest rate was 7 percent, so the
total proceeds from the bond issue were $681,631. Loop uses the
straight-line bond amortization method and adjusts for any rounding
errors when recording interest in the final year.
Required:
1. Prepare...
On January 1, 2018, Loop Raceway issued 620 bonds, each with a face value of $1,000,...
On January 1, 2018, Loop Raceway issued 620 bonds, each with a face value of $1,000, a stated interest rate of 7 percent paid annually on December 31, and a maturity date of December 31, 2020. On the issue date, the market interest rate was 8 percent, so the total proceeds from the bond issue were $604,002. Loop uses the straight-line bond amortization method and adjusts for any rounding errors when recording interest in the final year. Required: 1. Prepare...
Problem 5 On January 31, 20x1, an entity issues bonds with the following characteristics: Face Value Coupon rate Yield to maturity Bonds dated Maturity Coupon payment dates $20,000,000 5% 4.6% December 31, 20x0 December 31, 20x20 Jun 30, Dec 31 Required - Write the journal entries for this bond for the year 20x1.
Problem 4 On February 15, 20x1, the Claudio Corporation issues $10,000,000 of 4.3% bonds. The bonds were dated December 31, 20x0, and are due on December 31, 20x15. The bonds were issued to yield 4.6% and pay interest semi-annually on June 30 and December 31, Required - Prepare all journal entries relative to this bond issue for the year ended December 31, 20x1. Problem 3 On December 31, 20x0, the Einaudi Corporation issues $4,000,000 of 5% bonds. The bonds are...
Pretzelmania, Inc., Issues 5%, 10 year bonds with a face amount of $56.000 for $56,000 on January 1, 2021 The market interest rate for bonds of similar risk and maturity is 5% Interest is paid semiannually on June 30 and December 31 Required: 1.8 2. Record the bond issue and first interest payment on June 30, 2021. (If no entry is required for a particular transaction/event, select No Journal Entry Required in the first account field.) View fractionat Journal entry...
Woodwick Company issues 6%, five-year bonds, on December 31, 2017, with a par value of $102,000 and semia payments. Semiannual Period-End (0) 12/31/2017 (1) 6/30/2018 (2) 12/31/2018 Unamortized Premium $8,151 7,336 6,521 Carrying Value $110,151 109,336 108,521 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on December 31, 2017, (b) The first interest payment on June 30, 2018. (c) The second interest payment on December 31, 2018. View transaction...
Problem 2 On December 31, 20x0, Herman Corporation purchased bonds of another company. The bonds had a face value of $400,000, mature on December 31, 20x10, and pay a coupon rate of 3% semi-annually on June 30 and Dec 31. The bonds were yielding 3.3% on the date of purchase. On December 31, 20x 1 and 20x2 the bonds are trading at 96 and 97 respectively. On January 2, 20x3, the bonds are sold at 98.5. Required - Prepare all...
Dobbs Company issues 5%, two-year bonds, on December 31, 2019, with a par value of $105,000 and semiannual interest payments. Unamortized Discount Semiannual Period-End Carrying Value (0) 12/31/2019 (1) (2) 12/31/2020 (3) (4) 12/31/2021 $98,900 100,425 101,950 103,475 105,000 $6,100 4,575 3,050 1,525 6/30/2020 6/30/2021 0 Use the above straight-line bond amortization table and prepare journal entries for the following. Required: (a) The issuance of bonds on December 31, 2019 (b) The first through fourth interest payments on each June...
On January 1, 2018, Loop Raceway issued 700 bonds, each with a
face value of $1,000, a stated interest rate of 6 percent paid
annually on December 31, and a maturity date of December 31, 2020.
On the issue date, the market interest rate was 7 percent, so the
total proceeds from the bond issue were $681,631. Loop uses the
straight-line bond amortization method and adjusts for any rounding
errors when recording interest in the final year.
Required:
1. Prepare...
Most questions answered within 3 hours.
-
1. Review the Nike’s marketing strategy. You must include the
company’s target market, possible market segmentation,...
asked 1 minute ago -
One of the major advantages of ______________ is to enhance
security for private networks by keeping...
asked 7 minutes ago -
Book:
Title: Framework for
Marketing Management, 15th edition
Author/s: Philip T.
Kotler, Kevin Lane Keller
1....
asked 16 minutes ago -
Given Uber’s recent corporate turbulence and ongoing
initiatives, provide a holistic situational analysis of the
environment...
asked 19 minutes ago -
A sculptor has hung up a 42.0 kg horizontal rod of length 4.80 m
. One...
asked 22 minutes ago -
What is the purpose of the 2' hydroxyl group in RNA? What is
the reason this...
asked 41 minutes ago -
You currently have 20,000X ethidium bromide. You want to make
250 mL of 1X ethidium bromide...
asked 53 minutes ago -
What mass of lead is needed to absorb 348 J of heat if the temp
of...
asked 56 minutes ago -
Explain the difference between an auction with reserve
and an auction without reserve. if not specified,...
asked 58 minutes ago -
Write the net ionic equation for the precipitation reaction that
occurs when aqueous solutions of aluminum...
asked 1 hour ago -
How do we find the slope distance, given the horizontal distance
and the zenith angle?
For...
asked 1 hour ago -
The table to the right lists probabilities for the corresponding
numbers of girls in three births....
asked 1 hour ago