Part 1 | ||||
Table values are based on: | ||||
n= | 10 | |||
i= | 2.5% | |||
Cash Flow | Table Value | Amount | Present Value | |
Interest | 8.75206 | $19,200 | $1,68,040 | |
Principal | 0.7812 | $6,40,000 | $4,99,968 | |
Price of Bonds | $6,68,008 | |||
Date | Accounts and explanation | Debit(in $) | Credit(in $) | |
01-Jan-18 | Cash | $6,68,008 | ||
Bonds Payable | $6,68,008 | |||
01-Jul-18 | Bonds Payable | $2,800 | ||
Interest expenses | $16,400 | |||
Cash | 19200 | |||
31-Dec-18 | Bonds Payable | $2,800 | ||
Interest expenses | $16,400 | |||
Cash | 19200 | |||
Part 2 | ||||
Table values are based on: | ||||
n= | 10 | |||
i= | 3.0% | |||
Cash Flow | Table Value | Amount | Present Value | |
Interest | 8.5302 | $19,200 | $1,63,780 | |
Principal | 0.74409 | $6,40,000 | $4,76,220 | |
Price of Bonds | $6,40,000 | |||
Date | Accounts and explanation | Debit(in $) | Credit(in $) | |
01-Jan-18 | Cash | $6,40,000 | ||
Bonds Payable | $37,000 | |||
01-Jul-18 | Interest expenses | $19,200 | ||
Cash | $19,200 | |||
31-Dec-18 | Interest expenses | $19,200 | ||
Cash | ||||
$19,200 | ||||
Part 3 | ||||
Table values are based on: | ||||
n= | 10 | |||
i= | 3.5% | |||
Cash Flow | Table Value | Amount | Present Value | |
Interest | 8.3166 | $19,200 | $1,59,679 | |
Principal | 0.70892 | $6,40,000 | $4,53,709 | |
Price of Bonds | $6,13,388 | |||
Date | Accounts and explanation | Debit(in $) | Credit(in $) | |
01-Jan-18 | Cash | $6,13,388 | ||
Bonds Payable | $6,13,388 | |||
01-Jul-18 | Interest expenses | $21,860 | ||
Cash | $19,200 | |||
Bond Payable | $2,660 | |||
31-Dec-18 | Interest expenses | $21,860 | ||
Cash | $19,200 | |||
Bond Payable | $2,660 | |||
Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value...
Brief Exercise 10-17 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $640,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. Your answer is partially correct. Try again. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%....
On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $640,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. (a) Your answer is correct. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account titles are automatically...
On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $640,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. (a) Your answer is correct. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account titles are automatically...
Question 3 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $640,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. (a) Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account titles are automatically indented when...
Question 3 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $480,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year-end and records adjusting entries annually. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 7%. (Credit account titles are automatically indented when the amount...
Question 3 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $480,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year-end and records adjusting entries annually. Collapse question part (a) Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account titles are automatically...
Question 3 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $490,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. (a) Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%. (Credit account titles are automatically indented when...
Question 3 On January 1, 2018, Carvel Corp. issued five-year bonds with a face value of $620,000 and a coupon interest rate of 6%, with interest payable semi-annually. Assume that the company has a December 31 year end and records adjusting entries annually. (a) Your answer is partially correct. Try again. Record the journal entries relating to the bonds on January 1, July 1, and December 31, assuming that when the bonds were sold, the market interest rate was 5%....
On January 1, 2018, Irik Corporation issued $2,550,000 face value, 7%, 10-year bonds at $2.378,893. This price resulted in an effective- interest rate of 8% on the bonds. The bonds pay annual interest, each January 1. Prepare the journal entry to record the issue of the bonds on January 1, 2018. (Credit account titles are automatically Indented when the amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Jan. 1, 2018 Prepare an amortization table through...
Exercise 10-14 Tarawa Limited issued $1,250,000 of 10-year, 5% bonds on January 1, 2018, when the market interest rate was 6%. Tarawa received $1,157,021 when the bonds were issued. Interest is payable semi-annually on July 1 and January 1. Tarawa has a December 31 year end. Record the issue of the bonds on January 1. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 1 SHOW...