Homework Answers
Issue price = (800000*6%*17.292+800000*0.308) = 1076416
Semiannual amortization = (1076416-800000/30) = 9214
Interest paid = 800000*6% = 48000
Interest expense = 48000-9214 = 38786
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Question 4 0 out of 5.88 points Assume that the following information is relevant for one...
Problem 14-10AB Effective Interest: Amortization of bond LO P6 [The following information applies to the questions...
Problem 14-10AB Effective Interest: Amortization of bond LO
P6
[The following information applies to the questions
displayed below.]
Ike issues $270,000 of 11%, three-year bonds dated January 1, 2019,
that pay interest semiannually on June 30 and December 31. They are
issued at $276,848. When the market rate is 10%.
Ike issues $270,000 of 11%, three-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
They are issued at $276,848. When the market rate...
Legacy issues $710,000 of 8.0%, four year bonds dated January 1, 2017, that pay interest semiannually...
Legacy issues $710,000 of 8.0%, four year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $621,812 and their market rate is 12% at the issue date. 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Legacy issues $710,000 of...
Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 The following information applies to...
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Balance sheet Financing Options OPTION1 The company could issue $2,500,000 of long-term bonds, due in 8...
Balance sheet
Financing Options OPTION1 The company could issue $2,500,000 of long-term bonds, due in 8 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. The bond issues for 85. OPTION 2 The company could issue $2,000,000 of long-term bonds, due in 7 years with a stated rate of interest, paid semiannually, of 6%. The market rate for similar debt is 4%. The bond issues for 110. OPTION 3 The...
Required information Problem 10-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 The...
Required information Problem 10-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 The following information applies to the questions displayed below] Legacy issues $70o,000 of 7.5% four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $643,419 and their mearket rate is 10 % at the issue date Problem 10-5A Part 1 Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. View...
Required information [The following information applies to the questions displayed below! Part 2 of 4 Legacy...
Required information [The following information applies to the questions displayed below! Part 2 of 4 Legacy issues $560,000 of 9.0%, four year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $507,831 and their market rate is 12% at the issue date. 2. Determine the total bond interest expense to be recognized over the bonds' life. points (8 00:35:28 Total bond interest expense over lite of bonds Amount repaid: payments...
Horngren Corporation issues 20-year bonds with a face value of $15,000,000 and a stated annual interest...
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Problem 4 On December 31, 20x0, an entity issues bonds with the following characteristics: Face Value...
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4) Atlantic Company issues 10-year bonds, as follows: Bonds are dated to be issued on: Bonds are ...
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Required information The following information applies to the questions displayed below) Legacy issues $700,000 of 75%,...
Required information The following information applies to the questions displayed below) Legacy issues $700,000 of 75%, four year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31 They are issued at $643,419 when the market rate is 10% Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $700,000 on January 1, 2019 at an...
Problem 14-10AB Effective Interest: Amortization of bond LO
P6
[The following information applies to the questions
displayed below.]
Ike issues $270,000 of 11%, three-year bonds dated January 1, 2019,
that pay interest semiannually on June 30 and December 31. They are
issued at $276,848. When the market rate is 10%.
Ike issues $270,000 of 11%, three-year bonds dated January 1,
2019, that pay interest semiannually on June 30 and December 31.
They are issued at $276,848. When the market rate...
Legacy issues $710,000 of 8.0%, four year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $621,812 and their market rate is 12% at the issue date. 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense Legacy issues $710,000 of...
Required information Problem 10-4A Straight-Line: Amortization of bond discount LO P2 The following information applies to the questions displayed below] Legacy issues $590,000 of 7.5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $542,310 when the market rate is 10% Problem 10-4A Part 1 Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet < 1 Record the issue...
Balance sheet
Financing Options OPTION1 The company could issue $2,500,000 of long-term bonds, due in 8 years with a stated rate of interest, paid semiannually, of 4%. The market rate for similar debt is 6%. The bond issues for 85. OPTION 2 The company could issue $2,000,000 of long-term bonds, due in 7 years with a stated rate of interest, paid semiannually, of 6%. The market rate for similar debt is 4%. The bond issues for 110. OPTION 3 The...
Required information Problem 10-5A Straight-Line: Amortization of bond premium and discount LO P1, P2, P3 The following information applies to the questions displayed below] Legacy issues $70o,000 of 7.5% four-year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $643,419 and their mearket rate is 10 % at the issue date Problem 10-5A Part 1 Required: 1. Prepare the January 1, 2017, journal entry to record the bonds' issuance. View...
Required information [The following information applies to the questions displayed below! Part 2 of 4 Legacy issues $560,000 of 9.0%, four year bonds dated January 1, 2017, that pay interest semiannually on June 30 and December 31. They are issued at $507,831 and their market rate is 12% at the issue date. 2. Determine the total bond interest expense to be recognized over the bonds' life. points (8 00:35:28 Total bond interest expense over lite of bonds Amount repaid: payments...
Problem 4 On December 31, 20x0, an entity issues bonds with the following characteristics: Face Value Coupon rate Yield to maturity Maturity Coupon payment dates Bond issue costs $20,000,000 3% 3.2% December 31, 20x15 Jun 30, Dec 31 $360,000 Required - a) b) Write the journal entries for this bond for the years 20x0 and 20x1. Assume that on January 1, 20x9, 10% of the bond issue is retired at 98. Write the journal entry to show the bond retirement...
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Required information The following information applies to the questions displayed below) Legacy issues $700,000 of 75%, four year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31 They are issued at $643,419 when the market rate is 10% Required: 1. Prepare the January 1 journal entry to record the bonds' issuance. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $700,000 on January 1, 2019 at an...
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