Homework Answers
| 4% | ||||
| effective | Decrease in | oustanding | ||
| payment | Cash | interest | balance | balance |
| 8,640,967 | ||||
| 1 | 300,000 | 345,639 | 45,639 | 8,686,606 |
| 2 | 300,000 | 347,464 | 47,464 | 8,734,070 |
| 3 | 300,000 | 349,363 | 49,363 | 8,783,433 |
| 4 | 300,000 | 351,337 | 51,337 | 8,834,770 |
| answer) | 8,834,770 | |||
answer 2) This approach has the appeal of reflecting the effect that debt issue costs have on the effective interest rate because deducting debt issue costs lowers the carrying amount of the debt, which effectively increases the interest rate on that debt
Add Answer to:
1 question 2 parts
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds...
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term...
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Payment Cash Interest Balance Balance 8,640,967 1 300,000 345,639 45,639 8,686,606 2 300,000 347,464 47,464 8,734,070 3 300,000 349,363 49,363 8,783,433 4 300,000 What is the effective annual rate of interest on the bonds? 6%. 8%. 3%. 4%.
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term...
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Payment Effective Decrease in Interest Balance Cash 300,000 300,000 300,000 300,000 Outstanding Balance 8,640, 967 8,686,606 8,734,070 8,783,433 345,639 347,464 349, 363 45,639 47,464 49,363 What is the book value of the bonds as of December 31, 2022? Multiple Choice 0 $8,783,433. 0 $8,686,606. 0 $8,834,770. 0 $8,734,070.
11) Discount-Mart issues $10 million in bonds on January 1, 2018. The bonds have a ten-year...
11) Discount-Mart issues $10 million in bonds on January 1, 2018. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Increase in Carrying Value Cash Paid Date Interest Expense Carrying Value $8,640,967 8,686,606 8,734,070 8,783,433 8,834,770 1/1/2018 6/30/2018 12/31/2018 6/30/2019 12/31/2019 $300,000$345,639 300,000 300,000 300,000 $45,639 47,464 49,363 51,337 347,464 349,363 351,337 What is the interest expense on the bonds in...
What is the stated annual rate of interest on the bonds? What is the interest expense...
What is the stated annual rate of interest on
the bonds?
What is the interest expense on the bonds for
the year ended December 31, 2022?
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Payment Effective Interest Decrease in Balance Cash HM 300,000 300,000 300,000 300,000 345,639 347,464 349,363 45,639 47,464 49,363 Outstanding Balance 8,640,967 8,686,606 8,734,070 8,783,433
Help Save & Exit Discount-Mart issues $10 million in bonds on January 1, 2021. The bonds...
Help Save & Exit Discount-Mart issues $10 million in bonds on January 1, 2021. The bonds have a ten-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 Increase in Carrying Value $8,640,967 8,686,606 8,734,070 Cash Paid Expense Carrying Value Date 01/01/2021 06/30/2021 $30ee, eea $345,639 347,464 349,363 351,337 $45,639 47,464 49,363 51,337 12/31/2021 308,000 06/38/2822 . 300,e00 300,e00 8,783,433 8,834,770 12/31/2022 What is the...
When issuing bonds or notes, Papaya Company incurs costs, such as legal and accounting fees, printing...
When issuing bonds or notes, Papaya Company incurs costs, such as legal and accounting fees, printing costs, and registration and underwriting fees. Papaya records these costs by combining them with any discount (or subtracting them from any premium) on the debt. Which of the following is an accurate statement regarding the company's policy? Multiple Choice This approach has the appeal of reflecting the effect that debt issue costs have on the effective interest rate because deducting debt issue costs lowers...
When issuing bonds or notes, Papaya Company incurs costs, such as legal and accounting fees, printing...
When issuing bonds or notes, Papaya Company incurs costs, such as legal and accounting fees, printing costs, and registration and underwriting fees. Papaya records these costs by combining them with any discount (or subtracting them from any premium) on the debt. Which of the following is an accurate statement regarding the company’s policy? Multiple Choice The policy is inappropriate because these costs should be expensed in the period the debt is issued. The policy is inappropriate because these costs should...
1 question 2 parts When bonds and other debt are issued, costs such as legal costs,...
1 question 2 parts
When bonds and other debt are issued, costs such as legal costs, printing costs, and underwriting fees are referred to as debt issue costs. When debt issue costs are incurred: The recorded amount of the debt is increased by the debt issue costs. The decrease in the effective interest rate caused by the debt issue costs is reflected in the interest expense The increase in the effective interest rate caused by the debt issue costs is...
Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year...
Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Interest Balance Payment Cash Outstanding Balance 11,487,747 11,432,379 11,375,350 11,316,611 400,000 400,000 400,000 400,000 344,632 342,971 341,261 55,368 57,029 58,739 What is the stated annual rate of interest on the bonds? Multiple Choice o o
35)_ 35) Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2018. The bonds have...
35)_ 35) Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Payment Cash Decrease in Balance 400,000 400,000 400,000 400,000 344,632 342,971 341,261 55,368 57,029 58,739 Outstanding Balance 11,487,747 11,432,379 11,375,350 11,316,611 What would be the total interest expense recognized for the bond issue over its full term? A) $9,487,747. B) $8,000,000. C) $11,487,747. D) $6,512,253.
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Outstanding Payment Cash Interest Balance Balance 8,640,967 1 300,000 345,639 45,639 8,686,606 2 300,000 347,464 47,464 8,734,070 3 300,000 349,363 49,363 8,783,433 4 300,000 What is the effective annual rate of interest on the bonds? 6%. 8%. 3%. 4%.
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Payment Effective Decrease in Interest Balance Cash 300,000 300,000 300,000 300,000 Outstanding Balance 8,640, 967 8,686,606 8,734,070 8,783,433 345,639 347,464 349, 363 45,639 47,464 49,363 What is the book value of the bonds as of December 31, 2022? Multiple Choice 0 $8,783,433. 0 $8,686,606. 0 $8,834,770. 0 $8,734,070.
11) Discount-Mart issues $10 million in bonds on January 1, 2018. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Increase in Carrying Value Cash Paid Date Interest Expense Carrying Value $8,640,967 8,686,606 8,734,070 8,783,433 8,834,770 1/1/2018 6/30/2018 12/31/2018 6/30/2019 12/31/2019 $300,000$345,639 300,000 300,000 300,000 $45,639 47,464 49,363 51,337 347,464 349,363 351,337 What is the interest expense on the bonds in...
What is the stated annual rate of interest on
the bonds?
What is the interest expense on the bonds for
the year ended December 31, 2022?
Discount-Mart issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Payment Effective Interest Decrease in Balance Cash HM 300,000 300,000 300,000 300,000 345,639 347,464 349,363 45,639 47,464 49,363 Outstanding Balance 8,640,967 8,686,606 8,734,070 8,783,433
Help Save & Exit Discount-Mart issues $10 million in bonds on January 1, 2021. The bonds have a ten-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 Increase in Carrying Value $8,640,967 8,686,606 8,734,070 Cash Paid Expense Carrying Value Date 01/01/2021 06/30/2021 $30ee, eea $345,639 347,464 349,363 351,337 $45,639 47,464 49,363 51,337 12/31/2021 308,000 06/38/2822 . 300,e00 300,e00 8,783,433 8,834,770 12/31/2022 What is the...
When issuing bonds or notes, Papaya Company incurs costs, such as legal and accounting fees, printing costs, and registration and underwriting fees. Papaya records these costs by combining them with any discount (or subtracting them from any premium) on the debt. Which of the following is an accurate statement regarding the company's policy? Multiple Choice This approach has the appeal of reflecting the effect that debt issue costs have on the effective interest rate because deducting debt issue costs lowers...
1 question 2 parts
When bonds and other debt are issued, costs such as legal costs, printing costs, and underwriting fees are referred to as debt issue costs. When debt issue costs are incurred: The recorded amount of the debt is increased by the debt issue costs. The decrease in the effective interest rate caused by the debt issue costs is reflected in the interest expense The increase in the effective interest rate caused by the debt issue costs is...
Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2021. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Decrease in Interest Balance Payment Cash Outstanding Balance 11,487,747 11,432,379 11,375,350 11,316,611 400,000 400,000 400,000 400,000 344,632 342,971 341,261 55,368 57,029 58,739 What is the stated annual rate of interest on the bonds? Multiple Choice o o
35)_ 35) Prescott Corporation issued ten thousand $1,000 bonds on January 1, 2018. The bonds have a 10-year term and pay interest semiannually. This is the partial bond amortization schedule for the bonds. Effective Interest Payment Cash Decrease in Balance 400,000 400,000 400,000 400,000 344,632 342,971 341,261 55,368 57,029 58,739 Outstanding Balance 11,487,747 11,432,379 11,375,350 11,316,611 What would be the total interest expense recognized for the bond issue over its full term? A) $9,487,747. B) $8,000,000. C) $11,487,747. D) $6,512,253.
Most questions answered within 3 hours.
-
How can we identify what the horizontal force is when looking at
a merry go round?...
asked 16 minutes ago -
While Dime Community Bank is based in Brooklyn; management has
decided to focus its lending activity...
asked 41 minutes ago -
1) Earnings functions, whereby the log of earnings is regressed
on years of education, years of...
asked 15 minutes ago -
Bruno Corporation is involved in the business of injection
molding of plastics. It is considering the...
asked 20 minutes ago -
What would be the vapor pressure of water at 96°C above a
solution made by dissolving...
asked 35 minutes ago -
Hydration of norbornene
Write the reaction. Discuss the intermediate. Explain how the
equilibrium in the reaction...
asked 42 minutes ago -
Suppose that a party wanted to enter an FRA that expires in 42
days and is...
asked 43 minutes ago -
ABC Ltd. estimated that a new store requires an initial
investment of $800,000. This new store...
asked 44 minutes ago -
1. Review the Nike’s marketing strategy. You must include the
company’s target market, possible market segmentation,...
asked 56 minutes ago -
One of the major advantages of ______________ is to enhance
security for private networks by keeping...
asked 1 hour ago -
Book:
Title: Framework for
Marketing Management, 15th edition
Author/s: Philip T.
Kotler, Kevin Lane Keller
1....
asked 1 hour ago -
Given Uber’s recent corporate turbulence and ongoing
initiatives, provide a holistic situational analysis of the
environment...
asked 1 hour ago