5% | 6% | ||||||
year | Cash | interest | Discount | Carrying | |||
interest | expense | amortized | value | ||||
1/1/2018 | 140000000 | ||||||
6/30/2018 | 8000000 | 8400000 | 400000 | 140400000 | |||
12/31/2018 | 8000000 | 8424000 | 424000 | 140824000 | |||
interest expense | 6/30/2018 | 8400000 | |||||
12/31/2018 | 4212000 | ||||||
12612000 | |||||||
interest payable | 160*1000000*10%*3/12= | 4000000 | |||||
net bonds payable | |||||||
bonds payable | 160000000 | ||||||
less:Discount on bonds amortized | 19388000 | ||||||
140612000 | |||||||
1) | Net bonds payable | 140612000 | |||||
interest payable | 4000000 | ||||||
2) | Interest expense for fiscal 2018 | 12612000 | |||||
3) | Sale of bonds | 143600000 | Financing activity | ||||
Cash interest paid | 12000000 | operating activity | |||||
On January 1, 2018. Baddour, Inc., issued 10% bonds with a face amount of $160 million....
On March 1, 2021, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $162 million. The bonds were priced at $141.8 million (plus accrued interest) to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddour’s fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September...
On March 1, 2021, Baddour, Inc., issued 10% bonds, dated January 1, with a face amount of $165 million. The bonds were priced at $143.6 million (plus accrued interest) to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddour's fiscal year ends September 30. Required: 1. to 3. What would be the amount(s) related to the bonds Baddour would report in its balance sheet, income statement and statement of cash flows for the year ended September...
Please include all work and calculations as well. On January 1, 2021, Beaver, Inc., issued 10% bonds with a face amount of $180 million. The bonds were priced at $158 million to yield 12%. Interest is paid semiannually on June 30 and December 31. Beaver's fiscal year ends September 30. Required: 1. What amount(s) related to the bonds would Beaver report in its balance sheet at September 30, 2021? 2. What amount(s) related to the bonds would Beaver report in...
Most Solutions, Inc., issued 11% bonds, dated January 1, with a face amount of $800 million on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market yield is 13%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2018 Cash (price) Discount on bonds (difference) 708,236, 800 91,763,200 Bonds payable (face amount)...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $2,000 million on July 1, 2018, at a price of $1,980 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. Prepare the journal entry to record interest at the effective interest rate at December 31. What would be the amount(s) related to the bonds that Agee would report in its statement of...
Most Solutions, Inc., issued 14% bonds, dated January 1, with a face amount of $680 million on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market yield is 16%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2018 Cash (price) 602,001,280 Discount on bonds (difference) 77,998,720 Bonds payable (face amount) 680,000,000...
Please, could you help me? Digital Telephony issued 10% bonds, dated January 1, with a face amount of $46 million on January 1, 2018, The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Digital recorded the issue as follows: (EV of $1. PV of $1 FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate...
Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $520 million on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2021 Cash (price) Discount on bonds (difference) Bonds payable (face amount) 464,911,512 55,088,488 520,000,000...
Myriad Solutions, Inc., issued 10% bonds, dated January 1, with a face amount of $320 million on January 1, 2018, for $283,294,720. The bonds mature on December 31, 2027 (10 years). For bonds of similar risk and maturity the market yield is 12%. Interest is paid semiannually on June 30 and December 31. Required: Complete the table below to calculate the amounts related to the bonds that Myriad would report in its financial statements. Indicate the amounts reported on the...
Miller Company issued 8% bonds, dated January 1, with a face amount of $1,000,000 on January 1, 2021. The bonds sold for $846,278 and mature in 2035 (15 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Assume Miller determines interest at the effective rate. Fiscal year ends on December 31. Answer the following questions: 1. What is the amount related to the bonds that Miller...