ZuoTi.Pro
Question
please do both
mond ACT 202: Homework Bond Exercises Bond#1: Given: The Max Corporation issued a 5-year $400,000 bond at a contract rate of
Bond#2: Given: The Mason Corporation issued a 3-year $500,000 bond at a coupon rate of 9% on January 1, 2017, the bond mature
business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

bond 1

Traded at premium as coupon interest rate is higher than market interest rate.

bond price 430881

for detail solution please see the attached image 2 0 2 Planning of the day Bord Bilce = (x 1- 014). + for Annual Conson Paymed - 48,00 [urgox key) femi annud Conson Paynta

0 0
Add a comment
Know the answer?
Add Answer to:
please do both mond ACT 202: Homework Bond Exercises Bond#1: Given: The Max Corporation issued a...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The Simpkins II Corporation issued a 5-year $800,000 bond at a coupon rate of 8% on...

    The Simpkins II Corporation issued a 5-year $800,000 bond at a coupon rate of 8% on January 1, 2018. Interest is paid semi-annually on June 30 and December 31 of each year. The market yield for bonds of similar risk and maturity is 10%. Required: A. Is this a premium or discount bond? B. Determine the price of the bond (using Present Value Tables) C. Determine the total amount of interest expense for this bond at maturity (prior to making...

  • Chowan Corporation issued $136,000 of 7% bonds dated January 1, 2016, for $131,421.73 on January 1,...

    Chowan Corporation issued $136,000 of 7% bonds dated January 1, 2016, for $131,421.73 on January 1, 2016. The bonds are due December 31, 2019, were issued to yield 8%, and pay interest semiannually on June 30 and December 31. Chowan uses the effective interest method of amortization. 1. Required: Prepare the journal entries to record the issue of the bonds on January 1, 2016, and the interest payments on June 30, 2016, December 31, 2016, and June 30, 2017. In...

  • Chowan Corporation issued $154,000 of 7% bonds dated January 1, 2016, for $148,815.79 on January 1,...

    Chowan Corporation issued $154,000 of 7% bonds dated January 1, 2016, for $148,815.79 on January 1, 2016. The bonds are due December 31, 2019, were issued to yield 8%, and pay interest semiannually on June 30 and December 31. Chowan uses the effective interest method of amortization. Required: Prepare the journal entries to record the issue of the bonds on January 1, 2016, and the interest payments on June 30, 2016, December 31, 2016, and June 30, 2017. In addition,...

  • On 2 January 2016, Platinum Berhad issued 5 % bonds dated 1 January 2016, with a...

    On 2 January 2016, Platinum Berhad issued 5 % bonds dated 1 January 2016, with a principal amount of RM100,000,000. The bonds will mature in 2035. On the issuance date, for bonds of similar risk and maturity, the market yield is 4%. Interest is paid semiannually on 30 June and 31 December. Compute the issuance price of the bond on 2 January 2016. Show all computations On 2 January 2016, Platinum Berhad issued 5 % bonds dated 1 January 2016,...

  • Federal Semiconductors issued 11% bonds, dated January 1, 2014 with a face amount of $80 million....

    Federal Semiconductors issued 11% bonds, dated January 1, 2014 with a face amount of $80 million. The bonds sold for $75,412,032 and mature on December 31, 2023. For bonds of similar risk and maturity the market yield is 12%. Interest is paid semi-annually on June 30 and December 31 of each year. Required: 1. Prepare the journal entry to account for the bond issuance on January 1, 2014. 2. Prepare the journal entry for the first interest payment on June...

  • The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million...

    The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. 1. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2021. 2. Prepare the journal entry to record interest for Saxton-Bose...

  • The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million...

    The Bradford Company issued 8% bonds, dated January 1, with a face amount of $50 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. 1. Prepare the journal entry to record the purchase of the bonds by Saxton-Bose on January 1, 2021. 2. Prepare the journal entry to record interest...

  • Part 2--Sample Bond problem on recording bonds payable: On January 1, 2016, Shirley Corporation purchased 10%...

    Part 2--Sample Bond problem on recording bonds payable: On January 1, 2016, Shirley Corporation purchased 10% bonds dated January 1, 2016, with a face amount of $10 million. The bonds mature in 2025 (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: 1. Determine the price of the bonds at January 1, 2016. 2. Prepare the journal entry to record the bond purchase by...

  • On January 1, 2021, JUNE Enterprises issued 10% bonds dated January 1, 2021, with a face...

    On January 1, 2021, JUNE Enterprises issued 10% bonds dated January 1, 2021, with a face amount of $19.0 million. The bonds mature in 2030 (10 years). For bonds of similar risk and maturity, the market yield is 8%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record the bond issuance by Mania on January 1, 2021. 3. Prepare the...

  • The Bradford Company issued 8% bonds, dated January 1, with a face amount of $100 million...

    The Bradford Company issued 8% bonds, dated January 1, with a face amount of $100 million on January 1, 2021 to Saxton-Bose Corporation. The bonds mature on December 31, 2030 (20 years). For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1. PV of $1, FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT