Computation Of Bond Price | ||
a | Annual Interest Amount | $ 2,53,200.00 |
($2110000*12%) | ||
b | PV Annuity Factor for (10 Years,11%) | 5.88923 |
c | Present Value Of Annual Interest (a*b) | $ 14,91,153.04 |
d | Redemption Value | $ 21,10,000.00 |
e | PV Factor Of (10 Years,11%) | 0.35218 |
g | Present Value Of Redemption Amount (d*e) | $ 7,43,099.80 |
f | Intrinsic Value ( Price ) Of The Bond (c+g) | $ 22,34,253 |
Permium on bond = $2234253-2110000 | ||
=$124253 |
Amortization Sheadule | ||||
Date | Cash Paid | Interest expenses at 6% | Premium Amortization | Carrying Value Of Bond |
01-01-2019 | $ 22,34,253 | |||
01-01-2020 | $ 2,53,200 | $ 2,45,768 | $ 7,432 | $ 22,26,821 |
01-01-2021 | $ 2,53,200 | $ 2,44,950 | $ 8,250 | $ 22,18,571 |
01-01-2022 | $ 2,53,200 | $ 2,44,043 | $ 9,157 | $ 22,09,414 |
01-01-2023 | $ 2,53,200 | $ 2,43,036 | $ 10,164 | $ 21,99,249 |
Problem 14-02 Indigo Co. is building a new hockey arena at a cost of $2,560,000. It...
Problem 14-02 Riverbed Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $480,000 from local businesses to support the project, and now needs to borrow $2,140,000 to complete the project. It therefore decides to issue $2,140,000 of 12%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 11%. Prepare the journal entry to record the issuance of the bonds on...
Problem 14-02 (Part Level Submission) Coronado Co. is building a new hockey arena at a cost of $2,360,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $1,860,000 to complete the project. It therefore decides to issue $1,860,000 of 10%, 10- year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 9%. (a) Your answer is correct. Prepare the journal...
Problem 14-2
Culver Co. is building a new hockey arena at a cost of
$2,430,000. It received a downpayment of $490,000 from local
businesses to support the project, and now needs to borrow
$1,940,000 to complete the project. It therefore decides to issue
$1,940,000 of 11%, 10-year bonds. These bonds were issued on
January 1, 2016, and pay interest annually on each January 1. The
bonds yield 10%.
Prepare the journal entry to record the issuance of the bonds
on...
Problem 14-02 (Part Level Submission) Coronado Co. is building a new hockey arena at a cost of $2,360,000. It received a downpayment of $500,000 from local businesses to support the project, and now needs to borrow $1,860,000 to complete the project. It therefore decides to issue $1,860,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 9%. (a) Your answer is partially correct. Try again. Prepare...
Flint Co. is building a new hockey arena at a cost of $2,660,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,210,000 to complete the project. It therefore decides to issue $2,210,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%. Your answer is partially correct. Prepare the journal entry to record the issuance of...
Flounder Co. is building a new hockey arena at a cost of $2,550,000. It received a downpayment of $450,000 from local businesses to support the project, and now needs to borrow $2,100,000 to complete the project. It therefore decides to issue $2,100,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%. Prepare the journal entry to record the issuance of the bonds on January 1,...
Metlock Co. is building a new hockey arena at a cost of $2,510,000. It received a downpayment of $490,000 from local businesses to support the project, and now needs to borrow $2,020,000 to complete the project. It therefore decides to issue $2,020,000 of 10%, 10- year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1 . The bonds yield 9%. Your answer is correct. Prepare the journal entry to record the issuance...
Sunland Co. is building a new hockey arena at a cost of $2,620,000. It received a downpayment of $530,000 from local businesses to support the project, and now needs to borrow $2,090,000 to complete the project. It therefore decides to issue $2,090,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10% Your answer is partially correct Prepare the journal entry to record the issuance of...
Tamarisk Co. is building a new hockey arena at a cost of $2,370,000. It received a downpayment of $520,000 from local businesses to support the project, and now needs to borrow $1,850,000 to complete the project. It therefore decides to issue $1,850,000 of 10%, 10-year bonds. These bonds were issued on January 1, 2016, and pay interest annually on each January 1. The bonds yield 9% Prepare the journal entry to record the issuance of the bonds on January 1,...
Pina Co. is building a new hockey arena at a cost of $2,360,000. It received a downpayment of $510,000 from local businesses to support the project, and now needs to borrow $1,850,000 to complete the project. It therefore decides to issue $1,850,000 of 11%, 10-year bonds. These bonds were issued on January 1, 2019, and pay interest annually on each January 1. The bonds yield 10%. Prepare the journal entry to record the issuance of the bonds on January 1,...