Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of...

Question

Question

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $4

business accounting

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Correct answer-----------$385,544,590

Working

Amortization table
	Period	Cash payment	Interest expense	Discount on Bonds payable	Carrying Value of Bond
	Issued			$ 66,947,000	$ 383,053,000
	1st Interest payment	$ 9,000,000	$ 11,491,590*	$ 2,491,590	$ 385,544,590

*383053000 x 3%

Add a comment

Answer 2

Similar Homework Help Questions

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of...

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $255,366,000, what would the company report for its net bond liability balance at December 31, 2021, rounded up to the nearest thousand? (Do...
29- Auerbach Inc. issued 6% bonds on October 1, 2021. The bonds have a maturity date...

29- Auerbach Inc. issued 6% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $440 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $380,204,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022? Multiple...
28- Auerbach Inc. issued 10% bonds on October 1, 2021. The bonds have a maturity date...

28- Auerbach Inc. issued 10% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 12%. Assuming that Auerbach issued the bonds for $265,590,000, what would the company report for its net bond liability balance at December 31, 2021, rounded up to the nearest thousand?...

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of...

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $490 million The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6% Assuming that Auerbach issued the bonds for $417103,000, what would the company report for its net bond ability balance after its first interest payment on March 31, 2022? Saved Не...
Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of...

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $370 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $314,955,000, what would the company report for its net bond liability balance after its first interest payment on March 31, 2022? On June...
Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of...

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $350 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.) Multiple Choice 0 $10.50 million. 0 $7.00 million. 0 $21.00 million. 0...

26- Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date...

26- Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $325 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.) Multiple Choice $19.50 million. $6.50 million. $13.00 million. $9.75 million.
25- Auerbach Inc. issued 5% bonds on October 1, 2021. The bonds have a maturity date...

25- Auerbach Inc. issued 5% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $375 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 7%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.) Multiple Choice $18.75 million. $26.25 million. $9.38 million. $13.13 million.
25 Auerbach Inc. issued 8% bonds on October 1, 2021. The bonds have a maturity date...

25 Auerbach Inc. issued 8% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $325 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 10%. How much cash interest does Auerbach pay on March 31, 2022? (Round your answer to 2 decimal places.) Multiple Choice $26.00 million. $13.00 million. $32.50 million. $16.25 million.

Auerbach Inc. issued 6% bonds on October 1, 2021. The bonds have a maturity date of...

Auerbach Inc. issued 6% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $250 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 8%. Assuming that Auerbach issued the bonds for $216,024,975, what interest expense would it recognize in its 2021 Income statement? (Do not round intermediate calculations. Round your final answer to nearest...

Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of...

Homework Answers