Bronco High School issues $10 million in bonds on January 1, 2021 that pay interest semi-annually...
Bronco High School issues $10 million in bonds on January 1, 2021 that pay interest semi-annually on June 30 and December 31. A portion of the bond amortization schedule appears below: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 $ 8,800,000 06/30/2021 $ 400,000 $ 440,000 $ 40,000 8,840,000 12/31/2021 400,000 442,000 42,000 8,882,000 What is the market annual interest rate? Multiple Choice 5%. 4%. 8%. 10%.
Homework Answers
| Date | Cash Paid | Interest expenses | Increase in carrying value | Carrying value |
| 01-Jan-21 | $88,00,000 | |||
| 30-Jun-21 | $4,00,000 | $4,40,000 | $40,000 | $88,40,000 |
| 31-Dec-21 | $4,00,000 | $4,42,000 | $42,000 | $88,82,000 |
| The stated Interest rate =$400,000 / $10,000,000 =4%(semi-annual) or 8%(annual) | ||||
| Market Interest rate =$440,000 / $8,800,000 =5%(semi-annual) or 10%(annual) | ||||
| So Market annual interest rate =10% | ||||
Add Answer to:
Bronco High School issues $10 million in bonds on January 1,
2021 that pay interest semi-annually...
Discount-Mart issues $11 million in bonds on January 1, 2021. The bonds have a seven-year term...
Discount-Mart issues $11 million in bonds on January 1, 2021. The bonds have a seven-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 $ 9,911,149 06/30/2021 $ 440,000 $ 495,557 $ 55,557 9,966,706 12/31/2021 440,000 498,335 58,335 10,025,041 06/30/2022 440,000 501,252 61,252 10,086,293 12/31/2022 440,000 504,315 64,315 10,150,608 What is the stated annual...
Sun City issues $50 million of bonds on January 1, 2021 that pay interest semiannually on...
Sun City issues $50 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A Portion of the bond amortization schedule appears below: Cash Paid Decrease in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 Interest Expense $1,936,857 1.936,857 1,934,647 Carrying Value $55,338,768 55,275,625 55,210,272 $2,000,000 2,000,000 $63,143 65,353 Required: 1. Were the bonds issued at face amount, a discount, or a premium? 2. What is the original issue price of the bonds? 3. What...
Sun City issues $42 million of bonds on January 1, 2021 that pay interest semiannually on...
Sun City issues $42 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: Cash Paid Interest Expense Decrease in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 Carrying Value $50,969,130 50,863, 65e 50,753,257 $1,890,000 1,890, eee $1,783,920 1,780,287 $106, ese 109,793 Required: 1. Were the bonds issued at face amount, a discount, or a premium? Premium Discount Face amount 2. What is the original issue...
Help Save & Exit Discount-Mart issues $10 million in bonds on January 1, 2021. The bonds...
Help Save & Exit Discount-Mart issues $10 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year, Below is a partial bond amortization schedule for the bonds Interest Increase in Carrying Value $8,640,967 8,686,606 8,734,070 Cash Paid Expense Carrying Value Date 01/01/2021 06/30/2021 $30ee, eea $345,639 347,464 349,363 351,337 $45,639 47,464 49,363 51,337 12/31/2021 308,000 06/38/2822 . 300,e00 300,e00 8,783,433 8,834,770 12/31/2022 What is the...
On January 1, 2021, a company issues $740,000 of 8% bonds, due in nine years, with...
On January 1, 2021, a company issues $740,000 of 8% bonds, due in nine years, with interest payable semiannually on June 30 and December 31 each year. Assuming the market interest rate on the issue date is 9%, the bonds will issue at $695,008. Required: 1. Fill in the blanks in the amortization schedule below: (Round your answers to the nearest dollar amount. Enter all amounts as positive values.) Date Cash Paid Interest Expense Change in Carrying Value Carrying Value...
On January 1, 2021, Splash City issues $370,000 of 6% bonds, due in 20 years, with...
On January 1, 2021, Splash City issues $370,000 of 6% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 7% and the bonds issued at $330,493. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $332,463 on December 31, 2022. (Round Interest expense to nearest whole dollar.) Date Cash Paid Interest Expense Increase in Carrying Value Carrying...
Exam Help Save & Exit Submit Discount Mart issues $12 million in bonds on January 1,...
Exam Help Save & Exit Submit Discount Mart issues $12 million in bonds on January 1, 2021. The bonds have a seven year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds Interest Expense Increase in Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $720,000 7 20. 720,000 720,000 $766,538 269.796 773,281 777,011 $46,538 49,796 53,281 57,011 Carrying Value $19,950,544 10,997,082 11,846,878 11, 109,...
On January 1, 2021, White Water issues $460,000 of 5% bonds, due in 15 years, with...
On January 1, 2021, White Water issues $460,000 of 5% bonds, due in 15 years, with interest payable annually on December 31 each year. Assuming the market interest rate on the issue date is 6%, the bonds will issue at $415,326. Required: 1. Complete the first three rows of an amortization schedule. (Round your final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Increase in Carrying Value Carrying Value 01/01/2021 12/31/2021 12/31/2022
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $450,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 8% and the bonds issued at $419,422. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $423,782 on December 31, 2022. (Round Interest expense to nearest whole...
On January 1, 2021, Universe of Fun issues $700,000, 7% bonds that mature in 10 years....
On January 1, 2021, Universe of Fun issues $700,000, 7% bonds that mature in 10 years. The market interest rate for bonds of similar risk and maturity is 8%, and the bonds issue for $652,434. Interest is paid semiannually on June 30 and December 31. eBook Print References Required: 1. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Change in...
Sun City issues $50 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A Portion of the bond amortization schedule appears below: Cash Paid Decrease in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 Interest Expense $1,936,857 1.936,857 1,934,647 Carrying Value $55,338,768 55,275,625 55,210,272 $2,000,000 2,000,000 $63,143 65,353 Required: 1. Were the bonds issued at face amount, a discount, or a premium? 2. What is the original issue price of the bonds? 3. What...
Sun City issues $42 million of bonds on January 1, 2021 that pay interest semiannually on June 30 and December 31. A portion of the bond amortization schedule appears below: Cash Paid Interest Expense Decrease in Carrying Value Date 01/01/2021 06/30/2021 12/31/2021 Carrying Value $50,969,130 50,863, 65e 50,753,257 $1,890,000 1,890, eee $1,783,920 1,780,287 $106, ese 109,793 Required: 1. Were the bonds issued at face amount, a discount, or a premium? Premium Discount Face amount 2. What is the original issue...
Help Save & Exit Discount-Mart issues $10 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year, Below is a partial bond amortization schedule for the bonds Interest Increase in Carrying Value $8,640,967 8,686,606 8,734,070 Cash Paid Expense Carrying Value Date 01/01/2021 06/30/2021 $30ee, eea $345,639 347,464 349,363 351,337 $45,639 47,464 49,363 51,337 12/31/2021 308,000 06/38/2822 . 300,e00 300,e00 8,783,433 8,834,770 12/31/2022 What is the...
Exam Help Save & Exit Submit Discount Mart issues $12 million in bonds on January 1, 2021. The bonds have a seven year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds Interest Expense Increase in Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $720,000 7 20. 720,000 720,000 $766,538 269.796 773,281 777,011 $46,538 49,796 53,281 57,011 Carrying Value $19,950,544 10,997,082 11,846,878 11, 109,...
Required information [The following information applies to the questions displayed below.] On January 1, 2021, Splash City issues $450,000 of 7% bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year. The market interest rate on the issue date is 8% and the bonds issued at $419,422. Required: 1. Using an amortization schedule, show that the bonds have a carrying value of $423,782 on December 31, 2022. (Round Interest expense to nearest whole...
On January 1, 2021, Universe of Fun issues $700,000, 7% bonds that mature in 10 years. The market interest rate for bonds of similar risk and maturity is 8%, and the bonds issue for $652,434. Interest is paid semiannually on June 30 and December 31. eBook Print References Required: 1. Complete the first three rows of an amortization schedule. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.) Date Cash Paid Interest Expense Change in...
Most questions answered within 3 hours.
-
Cranium, Inc., purchases term papers from an overseas supplier
under a continuous review system. The average...
asked 50 minutes ago -
1- What is the freezing point of pure water (in degrees
Celsius)?
2-
he molar mass...
asked 1 hour ago -
Determine the direction of the force that will act on the charge
in each of the...
asked 1 hour ago -
You purchase your daily coffee at the Chemist’s Coffeehouse and
have a choice of two cups:...
asked 4 hours ago -
Which of the following pairs of chemicals could be used to make
a buffer solution?
A.)...
asked 4 hours ago -
Problem 16-51 Sales
Activity Variance (LO 16-3)Odessa, Inc., reports the following
information concerning operations for the...
asked 4 hours ago -
Pictured on the right are thee point charges Q1 = 18.4 μC, Q2 =
-30.6 μC,...
asked 4 hours ago -
A graduate student is conducting research in psychology and
needs to obtain the IQ scores of...
asked 5 hours ago -
R2.84: There are 2 defective products in a production lot of 10.
An inspector randomly selected...
asked 6 hours ago -
Consider the following equilibrium system: COCl2(g) CO(g) +
Cl2(g) A 10.00 L evacuated flask is filled...
asked 7 hours ago -
1) What are the two distinct steps that one needs to perform
when developing a data...
asked 7 hours ago -
2) Write a C++ program that uses a class called “Degree” to
obtain the trigonometric
values...
asked 8 hours ago