Homework Answers
| Interest paid in cash =$313,000*8% =$25,040 | ||
| Interest expense recognized by bond issuer =$293,000*11% =$32,230 | ||
| Carrying value of Bond as on Dec 31,2021 =$293,000 + $32,230 - $25,040 =$300,190 | ||
| Interest income for 2022 =$300,190*11% =$33,021 | ||
| So Option B is the answer | ||
Add Answer to:
Help Save & Submit On January 1, 2021, an investor paid $293.000 for bonds with a...
On January 1, 2021, an investor paid $291,000 for bonds with a face amount of $300,000....
On January 1, 2021, an investor paid $291,000 for bonds with a face amount of $300,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2022 (assume annual interest payments and amortization)? Multiple Choice $23,280. $25,140. $29,100. $29,610.
On January 1, 2021, an investor paid $304,000 for bonds with a face amount of $355.000....
On January 1, 2021, an investor paid $304,000 for bonds with a face amount of $355.000. The stated rate of interest is 11% while the current market rate of interest Is 13%. Using the effective interest method, how much interest income is recognized by the investor in 2021 (assume annual interest payments and amortization? Multiple Choice $39,050 $46,150 $33,440 $39,520
On January 1, 2021, an investor paid $298,000 for bonds with a foce amount of $318,000....
On January 1, 2021, an investor paid $298,000 for bonds with a foce amount of $318,000. The contract rate of interest is 11 while the current market rate of interest is 14 Using the effective interest method, how much interest income is recognized by the investor in 2022 assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.) o o s2лво o 53A480 o S2664 < Prev 30 of 34 8 Next > e to search...
On January 1, 2018, an investor paid $294,000 for bonds with a face amount of $314,000....
On January 1, 2018, an investor paid $294,000 for bonds with a face amount of $314,000. The contract rate of interest is 8% while the current market rate of interest is 11%. Using the effective interest method, how much interest income is recognized by the investor in 2019 (assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.)
Exam Help Save & Exit Submit Discount Mart issues $12 million in bonds on January 1,...
Exam Help Save & Exit Submit Discount Mart issues $12 million in bonds on January 1, 2021. The bonds have a seven year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds Interest Expense Increase in Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $720,000 7 20. 720,000 720,000 $766,538 269.796 773,281 777,011 $46,538 49,796 53,281 57,011 Carrying Value $19,950,544 10,997,082 11,846,878 11, 109,...
Osbom's Help Save & Exit Submit On June 30, 2021, L. N. Bean issued $15 million...
Osbom's Help Save & Exit Submit On June 30, 2021, L. N. Bean issued $15 million of its 8% bonds for $14 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2021? Saved Help Save & EX Multiple Choice O $600,000 O $700,000 0 $750,000 o $620,000
on.com/flow/connecthem mework Saved Help Save & Exit Submit Check my work On January 1, 2021, Twister...
on.com/flow/connecthem mework Saved Help Save & Exit Submit Check my work On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $600,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. 2. If the market interest rate is 9%, the bonds will issue at $544,795. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021,...
Help Save & Exit Submit On January 1, 2021, Anne Teak Furniture issued $100,000 of 10%...
Help Save & Exit Submit On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 11 years. The annual market rate for bonds of similar risk and maturity is 12%. What was the issue price of the bonds? (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from...
Save &Exit Submit Help Saved Check my work On January 1, 2021, Twister Enterprises, a manufacturer...
Save &Exit Submit Help Saved Check my work On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $540,000 of 7 % bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year rt 2 of 3 2. If the market interest rate is 8 % , the bonds will issue at $503,306. Record the bond issue on January 1, 2021, and the first two semiannual interest payments...
Help Save & Exit Submit Check my work On January 1, 2021, Lyle's Limeade issues 5%,...
Help Save & Exit Submit Check my work On January 1, 2021, Lyle's Limeade issues 5%, 15-year bonds with a face amount of $88,000 for $79,376, priced to yield 6%. Interest is paid semiannually. What amount of interest expense will be recorded in the December 31, 2021, annual income statement? (Do not round your Intermediate calculations. Round your final answer to nearest whole dollar amount) Interest expense < Prev Next > ipe here to search
On January 1, 2021, an investor paid $304,000 for bonds with a face amount of $355.000. The stated rate of interest is 11% while the current market rate of interest Is 13%. Using the effective interest method, how much interest income is recognized by the investor in 2021 (assume annual interest payments and amortization? Multiple Choice $39,050 $46,150 $33,440 $39,520
On January 1, 2021, an investor paid $298,000 for bonds with a foce amount of $318,000. The contract rate of interest is 11 while the current market rate of interest is 14 Using the effective interest method, how much interest income is recognized by the investor in 2022 assume annual interest payments and amortization)? (Round your answer to the nearest dollar amount.) o o s2лво o 53A480 o S2664 < Prev 30 of 34 8 Next > e to search...
Exam Help Save & Exit Submit Discount Mart issues $12 million in bonds on January 1, 2021. The bonds have a seven year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds Interest Expense Increase in Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $720,000 7 20. 720,000 720,000 $766,538 269.796 773,281 777,011 $46,538 49,796 53,281 57,011 Carrying Value $19,950,544 10,997,082 11,846,878 11, 109,...
Osbom's Help Save & Exit Submit On June 30, 2021, L. N. Bean issued $15 million of its 8% bonds for $14 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2021? Saved Help Save & EX Multiple Choice O $600,000 O $700,000 0 $750,000 o $620,000
on.com/flow/connecthem mework Saved Help Save & Exit Submit Check my work On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $600,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. 2. If the market interest rate is 9%, the bonds will issue at $544,795. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021,...
Help Save & Exit Submit On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 11 years. The annual market rate for bonds of similar risk and maturity is 12%. What was the issue price of the bonds? (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from...
Save &Exit Submit Help Saved Check my work On January 1, 2021, Twister Enterprises, a manufacturer of a variety of transportable spin rides, issues $540,000 of 7 % bonds, due in 10 years, with interest payable semiannually on June 30 and December 31 each year rt 2 of 3 2. If the market interest rate is 8 % , the bonds will issue at $503,306. Record the bond issue on January 1, 2021, and the first two semiannual interest payments...
Help Save & Exit Submit Check my work On January 1, 2021, Lyle's Limeade issues 5%, 15-year bonds with a face amount of $88,000 for $79,376, priced to yield 6%. Interest is paid semiannually. What amount of interest expense will be recorded in the December 31, 2021, annual income statement? (Do not round your Intermediate calculations. Round your final answer to nearest whole dollar amount) Interest expense < Prev Next > ipe here to search
Most questions answered within 3 hours.
-
Bob is gambling in the casino. The probability that he will win
nothing is 0.2. The...
asked 46 minutes ago -
A free electron and a free proton are exactly 0.70 cm apart.
A)
Find the magnitude...
asked 52 minutes ago -
Identify and Describe the major sources of U.S law. Provide a
sport-related example of each.
asked 1 hour ago -
NASA's Ames Research Center in Mountain View, California, houses
a 20g centrifuge used to conduct research...
asked 2 hours ago -
I want a python code using recursion ONLY.
I cannot use any loops, dictionaries or modules....
asked 2 hours ago -
Tobin Supplies Company expects sales next year to be $450,000.
Inventory and accounts receivable will increase...
asked 2 hours ago -
Give the relative rates for the following with a neighbor at your
desk
PH3(g) to P4(g)...
asked 3 hours ago -
Suppose Acap Corporation will pay a dividend of $2.87 per share
at the end of this...
asked 3 hours ago -
Scientists make earthquake forecasts using data from:
A.
geodesy
B.
seismology
C.
geology
D.
paleoseismology
E....
asked 3 hours ago -
Employee training can
be defined as planned organizational efforts to help employees
learn job-related knowledge, skills,...
asked 4 hours ago -
Which for loop is implemented correctly in Java?
Group of answer choices
for (i = 0...
asked 5 hours ago -
Required information
[The following information applies to the questions
displayed below.]
In 2019, Alliant Corporation acquired...
asked 6 hours ago