Homework Answers
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
Add Answer to:
QUESTION 1 On January 1, 2019, Firm X issued 7% bonds, face value $5,000,000 due at...
1. Datos: On January 1, 2019, Firm X issued 7% bonds, face value $5,000,000 due at...
1. Datos: On January 1, 2019, Firm X issued 7% bonds, face value $5,000,000 due at the end of 5 years with interest paid annually. Part 1: Assume yield rate is 8% Yield Rate 8% Present value of 1 at 8% .68058 Present value of annuity (5 years 8%) 3.99271 1. How much was the bond sold? 2. Amount of Premium or Discount? 3. Present the calculation of how I arrive at these quantities of question 1 and 2: 4....
On January 1, 2018, Professors Credit Union (PCU) issued 7%, 20-year bonds payable with face value...
On January 1, 2018, Professors Credit Union (PCU) issued 7%, 20-year bonds payable with face value of $100,000. The bonds pay interest on June 30 and December 31. Read the requirements. Requirement 1. If the market interest rate is 5% when PCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 7% bonds issued when the market interest rate is 5% will be priced at 7. They are in...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...
Assume today is November 1, 2019 and that all bonds pay interest annually with a face...
Assume today is November 1, 2019 and that all bonds pay interest annually with a face value of $1,000. YIM - Current yield + Capital Gains yield; CY - Annual Interest/Current Price GE is A rated; AA Treasures yield 3-year is 1.90%, 10-year 2.10% 5 Years ago GE issued 6% coupon paying bonds with a face value set to mature on November 1, 2029. Growth concems have forced monetary authorities throughout the world to lower interest rates during the past...
Diaz Company issued $122,000 face value of bonds on January 1, 2018. The bonds had a...
Diaz Company issued $122,000 face value of bonds on January 1, 2018. The bonds had a 5 percent stated rate of interest and a ten-year term. Interest is paid in cash annually, beginning December 31, 2018. The bonds were issued at 99. The straight-line method is used for authorization. Determine the carrying value (face value less discount or plus premium) of the bond liability as of December 31, 2018. Determine the amount of interest expense reported on the 2018 income...
DOn January 1, 2019, Monarch Enterprises issued 8% bonds dated January 1, 2019, witha face amount...
DOn January 1, 2019, Monarch Enterprises issued 8% bonds dated January 1, 2019, witha face amount of $10 million. The bonds mature in 2025 (10 years). For bonds of similar risk and maturity, the market yield is 10% Interest is paid annually on December 31. (Use the Time Value of Money Factor Tables and show all Calculations) (a) What is the amount of the annual interest payment? (b) What is the price of the bond on the issue date (show...
Diaz Company issued $84,000 face value of bonds on January 1, 2018. The bonds had a...
Diaz Company issued $84,000 face value of bonds on January 1, 2018. The bonds had a 8 percent stated rate of interest and a ten-year term. Interest is paid in cash annually, beginning December 31, 2018. The bonds were issued at 98. The straight-line method is used for amortization. Required Use a financial statements model like the one shown below to demonstrate how (1) the January 1, 2018, bond issue and (2) the December 31, 2018, recognition of interest expense,...
Q.1 Three year bonds are issued at face value of SR100,000 on Jan. 1, 2007, a...
Q.1 Three year bonds are issued at face value of SR100,000 on Jan. 1, 2007, a stated interest rate of 8%, and market rate of 8%. Q.2 STC Company issues at par 10 years' term bonds with a par value of SR 800,000, dated January 1, 2007, and bearing interest at an annual rate of 10% payable semi-annually on January 1 and July1. Pass necessary entries for one year in the books of STC. Q.3 Three year bonds are issued...
On January 1, 2020, Saints issued $4,825,000, 6% 5-year bonds dated January 1, 2019. The bonds...
On January 1, 2020, Saints issued $4,825,000, 6% 5-year bonds dated January 1, 2019. The bonds pay interest semiannually on June 30 and December 31. The bonds were issued to yield 4%. 2.0% 3.0% 4.0% 6.0% Present value of a single sum for 5 periods 0.90573 0.86261 0.82193 0.74726 Present value of a single sum for 10 periods 0.82035 0.74409 0.67556 0.55839 Present value of an ordinary annuity for 5 periods 4.71346 4.57971 4.45182 4.21236 Present value of an ordinary...
PART B Bill Corporation issued six-year, 7% bonds with a total face value of $1,250,000 on...
PART B Bill Corporation issued six-year, 7% bonds with a total face value of $1,250,000 on January 1, 2019. Interest is paid semi-annually on June 30 and December 31. The market rate of interest on this date was 10.0%. Bill uses the effective interest rate method. Required: 1. Determine the proceeds of the bond sale on 1/1/19. Explain your method of calculation. 2. Using the present value of a dollar table (found in Appendix E of your text), what factor...
1. Datos: On January 1, 2019, Firm X issued 7% bonds, face value $5,000,000 due at the end of 5 years with interest paid annually. Part 1: Assume yield rate is 8% Yield Rate 8% Present value of 1 at 8% .68058 Present value of annuity (5 years 8%) 3.99271 1. How much was the bond sold? 2. Amount of Premium or Discount? 3. Present the calculation of how I arrive at these quantities of question 1 and 2: 4....
On January 1, 2018, Professors Credit Union (PCU) issued 7%, 20-year bonds payable with face value of $100,000. The bonds pay interest on June 30 and December 31. Read the requirements. Requirement 1. If the market interest rate is 5% when PCU issues its bonds, will the bonds be priced at face value, at a premium, or at a discount? Explain. The 7% bonds issued when the market interest rate is 5% will be priced at 7. They are in...
EA2. LO 13.1 Beluga Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 3% when the market rate was 4%. Interest was paid annually. The bonds were sold at 87.5. What was the sales price of the bonds? Were they issued at a discount, a premium, or at par? EA3. LO 13.1 Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was...
Assume today is November 1, 2019 and that all bonds pay interest annually with a face value of $1,000. YIM - Current yield + Capital Gains yield; CY - Annual Interest/Current Price GE is A rated; AA Treasures yield 3-year is 1.90%, 10-year 2.10% 5 Years ago GE issued 6% coupon paying bonds with a face value set to mature on November 1, 2029. Growth concems have forced monetary authorities throughout the world to lower interest rates during the past...
DOn January 1, 2019, Monarch Enterprises issued 8% bonds dated January 1, 2019, witha face amount of $10 million. The bonds mature in 2025 (10 years). For bonds of similar risk and maturity, the market yield is 10% Interest is paid annually on December 31. (Use the Time Value of Money Factor Tables and show all Calculations) (a) What is the amount of the annual interest payment? (b) What is the price of the bond on the issue date (show...
On January 1, 2020, Saints issued $4,825,000, 6% 5-year bonds dated January 1, 2019. The bonds pay interest semiannually on June 30 and December 31. The bonds were issued to yield 4%. 2.0% 3.0% 4.0% 6.0% Present value of a single sum for 5 periods 0.90573 0.86261 0.82193 0.74726 Present value of a single sum for 10 periods 0.82035 0.74409 0.67556 0.55839 Present value of an ordinary annuity for 5 periods 4.71346 4.57971 4.45182 4.21236 Present value of an ordinary...
Most questions answered within 3 hours.
-
Exercise 8-51 Algo
An accounting professor is notorious for being stingy in giving
out good letter...
asked 6 minutes ago -
month
total distribution cost
level of activity (unit produced)
july
230.000
3500
august
250.000
3750
september...
asked 7 minutes ago -
A smoke detector system uses two devices, A and B. If smoke is
present, the probability...
asked 55 minutes ago -
Your division head has assigned another important project to you
and your team. This project is...
asked 20 minutes ago -
Under normal use conditions, the Mean Time To Failure of a
heating coil can be modeled...
asked 1 hour ago -
Consider the probability that fewer than 34 out of 116 CDs will
be defective. Assume the...
asked 35 minutes ago -
4J Manufacturing Company uses a job order cost accounting system
and keeps perpetual inventory records. Prepare...
asked 24 minutes ago -
Please write code in C++
using recursive function
Write a program that computes the sequence of...
asked 22 minutes ago -
What is 345 as an unsigned decimal number? It is 34
with subscript of 5. Not...
asked 39 minutes ago -
I've been struggling with these homework questions. Any help
would be greatly appreciated
1. For the...
asked 36 minutes ago -
Read the In-Depth Integrative Case 1.2 (Pharmaceutical
Companies, Intellectual Property, and the Global AIDS Epidemic) in...
asked 36 minutes ago -
Consider a mass-spring system. The spring has a spring constant
of 2.27e+3 N/m. On the end...
asked 42 minutes ago