Homework Answers
1)Here they are asking to find the amount received when they
sold bonds , the formulae is below
Price=(coupon*(1-((1+i)^-n))/i)+(issue price*(1+i)^-n)
Coupon=maturity value*coupon rate
=50000*12%=60000
n=10%
t=5 years
issue price=500000
substituting in formuale we get it as 537907.87
Add Answer to:
plz show calculation
On January 1, 2014, Aumont Company sold 12% bonds having a maturity value...
On January 1, 2014, Aumont Company sold 12% bonds having a maturity value of $500,000. The...
On January 1, 2014, Aumont Company sold 12% bonds having a maturity value of $500,000. The market determined that 10% was the appropriate rate of interest, given the risks that Aumont Company presents to bondholders. The bonds are dated January 1, 2014, mature January 1, 2019, and pay interest on December 31 of each year. Determine the amount that bondholders will pay Aumont for these bonds when the bonds are issued on January 1, 2014. Present value of the maturity...
On January 1 2017, Aumont Company sold 12% bonds having a maturity value of $500,000 for...
On January 1 2017, Aumont Company sold 12% bonds having a maturity value of $500,000 for $537,907.37, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017 and mature January 1, 2022, with interest payable December 31 of each year. Aumont Company allocates interest and unamortized discount or premium on the effective-interest basis Instruction (round to the nearest cent) a) Prepare the journal entry at the date of the bond issuance b) Prepare a schedule...
(Entries for Bond Transactions) On January 1, 2020, Aumont Company sold 12% bonds having a maturity...
(Entries for Bond Transactions) On January 1, 2020, Aumont Company sold 12% bonds having a maturity value of $500,000 for $537,907.37, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Aumont Company allocates interest and unamortized discount or premium on the effective-interest basis. a) Prepare the journal entry for the issuance of the bonds using the information presented (i.e, Bonds issued...
On January 18, 2018, Apple Company sold 12% bonds having a maturity value of 500,000 for...
On January 18, 2018, Apple Company sold 12% bonds having a maturity value of 500,000 for 337,908, which provides the bondholders with a 10% yield. The bonds dated January 1st, 2018 and mature January 15, 2023, with interest payable December 31 of each year. Instructions: a) Prepare the journal entry at the date of the bond issuance b) Prepare a schedule of interest expense and bond amortization for 2018 – 2023.
On January 19, 2018, Apple Company sold 12% bonds having a maturity value of 500,000 for...
On January 19, 2018, Apple Company sold 12% bonds having a maturity value of 500,000 for 337,908, which provides the bondholders with a 10% yield. The bonds dated January 15, 2018 and mature January 19, 2023, with interest payable December 31 of each year. Instructions: a) Prepare the journal entry at the date of the bond issuance. (5 marks) b) Prepare a schedule of interest expense and bond amortization for 2018 - 2023. (20 marks)
On January 1, 2017, Novak Company sold 12% bonds having a maturity value of $520,000 for...
On January 1, 2017, Novak Company sold 12% bonds having a maturity value of $520,000 for $603,047, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2017, and mature January 1, 2022, with interest payable December 31 of each year. Novak Company allocates interest and unamortized discount or premium on the effective-interest basis. a)Prepare the journal entry at the date of the bond issuance b)Prepare a schedule of interest expense and bond amortization for 2017–2019...
On October 1, 2015, Brimley Company sold 12% bonds having a maturity value of $800,000 for...
On October 1, 2015, Brimley Company sold 12% bonds having a maturity value of $800,000 for $853,382 plus accrued interest, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2015, and mature January 1, 2020, with interest payable December 31 of each year. Prepare the journal entries at the date of the bond issuance and for the first interest payment.
On January 1, 2017, Franklin Company sold 11% bonds having a maturity value of $550,000 for...
On January 1, 2017, Franklin Company sold 11% bonds having a maturity value of $550,000 for $570,849, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2017, and mature January 1, 2022, with interest payable December 31 of each year. Franklin Company allocates interest and unamortized discount or premium on the effective-interest basis. 1. List the journal entry at the date of the bond issuance (January 1, 2017) 2. List a schedule of interest expense...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for...
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for $637,838, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sheridan Company allocates interest and unamortized discount or premium on the effective interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If...
On January 1, 2017, Crane Company purchased 12% bonds, having a maturity value of $304,000, for...
On January 1, 2017, Crane Company purchased 12% bonds, having a maturity value of $304,000, for $327,047.70. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest received on January 1 of each year. Crane Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified as available-for-sale category. The fair value of the bonds at December 31 of each year-end is as follows....
On January 18, 2018, Apple Company sold 12% bonds having a maturity value of 500,000 for 337,908, which provides the bondholders with a 10% yield. The bonds dated January 1st, 2018 and mature January 15, 2023, with interest payable December 31 of each year. Instructions: a) Prepare the journal entry at the date of the bond issuance b) Prepare a schedule of interest expense and bond amortization for 2018 – 2023.
On January 19, 2018, Apple Company sold 12% bonds having a maturity value of 500,000 for 337,908, which provides the bondholders with a 10% yield. The bonds dated January 15, 2018 and mature January 19, 2023, with interest payable December 31 of each year. Instructions: a) Prepare the journal entry at the date of the bond issuance. (5 marks) b) Prepare a schedule of interest expense and bond amortization for 2018 - 2023. (20 marks)
On January 1, 2020, Sheridan Company sold 12% bonds having a maturity value of $550,000 for $637,838, which provides the bondholders with a 8% yield. The bonds are dated January 1, 2020, and mature January 1, 2025, with interest payable December 31 of each year. Sheridan Company allocates interest and unamortized discount or premium on the effective interest basis. (a) Prepare the journal entry at the date of the bond issuance. (Round answer to 0 decimal places, e.g. 38,548. If...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 39 minutes ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 1 hour ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 2 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 3 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 4 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 5 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 6 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 9 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 9 hours ago