On July 1, 2021, Rainbow issued $800,000 of 5% bonds, dated July 1. Interest is payable semiannually on June 30 and December 31
On July 1, 2021, Rainbow issued $800,000 of 5% bonds, dated July 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in ten years. The market interest rate for bonds of similar risk and maturity is 8%. The entire bond issue was purchased by Jacklin, Inc. Due to unforeseen circumstances Jacklin decided to sell its debt investment for $650,000 on January 1, 2023, at which time the bonds have an amortized cost of $654,015. The amount of gain (loss) on sale of investment would be:
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On July 1, 2021, Rainbow issued $800,000 of 5% bonds, dated July 1. Interest is payable semiannually on June 30 and December 31
On July 1, 2021, Rainbow issued $400,000 of 5% bonds, dated July 1. Interest is payable...
On July 1, 2021, Rainbow issued $400,000 of 5% bonds, dated July 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in ten years. The market interest rate for bonds of similar risk and maturity is 6%. The entire bond issue was purchased by Jacklin, Inc. Due to unforeseen circumstances Jacklin decided to sell its debt investment for $380,000 on January 1, 2023, at which time the bonds have an amortized cost of $373,670. The...
Question 1 1 points Save Answer On July 1, 2021, Rainbow issued $500,000 of 4% bonds,...
Question 1 1 points Save Answer On July 1, 2021, Rainbow issued $500,000 of 4% bonds, dated July 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in ten years. The market interest rate for bonds of similar risk and maturity is 7%. The entire bond issue was purchased by Jacklin, Inc. Due to unforeseen circumstances Jacklin decided to sell its debt investment for $400,000 on January 1, 2023, at which time the bonds have...
On July 1,2021. James issued $1000 of 5% bonds, dated July 1. Interest is payable semiannually...
On July 1,2021. James issued $1000 of 5% bonds, dated July 1. Interest is payable semiannually on June 30 and Dec. 31. The bonds mature in ten years. The market interest rate for bonds of similar risk and maturity is 7%. The entire bond issue was purchased by Tom, Inc. Due to unforeseen circumstances Tom decide to sell its debt investment for $800 on Jan. 1,2023, at which time the bonds have an amortized cost of $850. The amount of...
60 points Rainbow Company issued 6% bonds, dated January 1, with a face amount of $800,000...
60 points Rainbow Company issued 6% bonds, dated January 1, with a face amount of $800,000 on January 1, 2021. The bonds sold for $661,665 and mature in 2035 (15 years). For bonds of similar risk and maturity the market yield was 8%. Interest is paid semiannually on June 30 and December 31. Assume Rainbow determines interest at the effective rate. Fiscal year ends on December 31. Answer the following questions 1. What is the amount related to the bonds...
On July 1, 2021, Reddington Company issued bonds paying interest semiannually on June 30 and December...
On July 1, 2021, Reddington Company issued bonds paying interest semiannually on June 30 and December 31 of each year at a coupon rate of 8%. At the issuance date, the market demands a 7% rate of return for bonds from a company with Reddington's creditworthiness and similar maturity. The bonds mature in 40 years on June 30, 2061, in the amount of $100,000,000. Required: Prepare a bond amortization schedule on excel in good form for these bonds using appropriate...
On July 1, 2021, Reddington Company issued bonds paying interest semiannually on June 30 and December...
On July 1, 2021, Reddington Company issued bonds paying interest semiannually on June 30 and December 31 of each year at a coupon rate of 8%. At the issuance date, the market demands a 7% rate of return for bonds from a company with Reddington's creditworthiness and similar maturity. The bonds mature in 40 years on June 30, 2061, in the amount of $100,000,000. Required: Prepare a bond amortization schedule on excel in good form for these bonds using appropriate...
Lance Brothers Enterprises acquired $605,000 of 3% bonds, dated July 1, on July 1, 2021, as...
Lance Brothers Enterprises acquired $605,000 of 3% bonds, dated July 1, on July 1, 2021, as a long-term investment. Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 4% for bonds of similar risk and maturity. Lance Brothers paid $525,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers’ investment in the bonds on...
Lance Brothers Enterprises acquired $545,000 of 5% bonds, dated July 1, on July 1, 2021, as...
Lance Brothers Enterprises acquired $545,000 of 5% bonds, dated July 1, on July 1, 2021, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Lance Brothers paid $465,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on...
Rainbow Company wed 6% bonds, dated January 1, with a face amount of $500,000 on January...
Rainbow Company wed 6% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds sold for 5661,665 and mature in 2035 (15 years) For bonds of similar risk and maturity the market yield was 8% Interest is paid semially on June 30 and December 31. Assume Rainbow determines interest at the effective rate Fiscal year ends on December 31 Answer the following questions 1. What is the mountated to the bonds that Rainbow will...
Lance Brothers Enterprises acquired $665,000 of 3% bonds, dated July 1, on July 1, 2021, as...
Lance Brothers Enterprises acquired $665,000 of 3% bonds, dated July 1, on July 1, 2021, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate yield) was 4 for bonds of similar risk and maturity Lance Brothers paid $585.000 for the investment in bonds and will receive interest semiannually on June 30 and December Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on July...
On July 1, 2021, Rainbow issued $400,000 of 5% bonds, dated July 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in ten years. The market interest rate for bonds of similar risk and maturity is 6%. The entire bond issue was purchased by Jacklin, Inc. Due to unforeseen circumstances Jacklin decided to sell its debt investment for $380,000 on January 1, 2023, at which time the bonds have an amortized cost of $373,670. The...
Question 1 1 points Save Answer On July 1, 2021, Rainbow issued $500,000 of 4% bonds, dated July 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in ten years. The market interest rate for bonds of similar risk and maturity is 7%. The entire bond issue was purchased by Jacklin, Inc. Due to unforeseen circumstances Jacklin decided to sell its debt investment for $400,000 on January 1, 2023, at which time the bonds have...
60 points Rainbow Company issued 6% bonds, dated January 1, with a face amount of $800,000 on January 1, 2021. The bonds sold for $661,665 and mature in 2035 (15 years). For bonds of similar risk and maturity the market yield was 8%. Interest is paid semiannually on June 30 and December 31. Assume Rainbow determines interest at the effective rate. Fiscal year ends on December 31. Answer the following questions 1. What is the amount related to the bonds...
Lance Brothers Enterprises acquired $545,000 of 5% bonds, dated July 1, on July 1, 2021, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Lance Brothers paid $465,000 for the investment in bonds and will receive interest semiannually on June 30 and December 31. Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on...
Rainbow Company wed 6% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds sold for 5661,665 and mature in 2035 (15 years) For bonds of similar risk and maturity the market yield was 8% Interest is paid semially on June 30 and December 31. Assume Rainbow determines interest at the effective rate Fiscal year ends on December 31 Answer the following questions 1. What is the mountated to the bonds that Rainbow will...
Lance Brothers Enterprises acquired $665,000 of 3% bonds, dated July 1, on July 1, 2021, as a long-term investment Management has the positive intent and ability to hold the bonds until maturity. The market interest rate yield) was 4 for bonds of similar risk and maturity Lance Brothers paid $585.000 for the investment in bonds and will receive interest semiannually on June 30 and December Prepare the journal entries (a) to record Lance Brothers' investment in the bonds on July...
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