Ordinarily, the proceeds from the sale of a bond issue will be equal to:
Ordinarily, the proceeds from the sale of a bond issue will be equal to:
Homework Answers
Proceeds from the sale of a bond issue = Present value of face value of the bond + Present value of the future interest payment.
Formula for proceeds from the sale of a bond = Face value * PVF (n,i) + Interest * PVAF (n,i)
n = Time period
i = Bond yield
With the help of discounting factor, we can find out the present value of the bond.
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Ordinarily, the proceeds from the sale of a bond issue will be
equal to:
Bond sale. Straight Line Amortization #2 Bonds Bonds issue 12/31/2xx1 $ 600,000 Face rate of Bond...
Bond sale.
Straight Line Amortization #2 Bonds Bonds issue 12/31/2xx1 $ 600,000 Face rate of Bond 6.00% Sold at Market rate of 8.00% Term in years 4 Interest paid annually at 12/31 Interest expense recorded quarterly A. Show computaions to get net proceeds from Bond sale B. Show JE to record sale @ 12/31/2xx1 C. Show 3 JE's to record interest expense for 3/31, 6/30,9/30 of 2xx2; was not paid D. knowing 3 quarters of expense had been recorded in...
Determining the proceeds from Bond Issues Madison Corporation is authorized to issue $420,000 of 6-year bonds...
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"Proceeds" from the sale of bonds represent a.the amount compared to the book (cost) value of...
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Keynes Corp. had the following cash transactions during 2020. Proceeds from sale of land: $312,000 Proceeds...
Keynes Corp. had the following cash transactions during 2020. Proceeds from sale of land: $312,000 Proceeds from long-term borrowings: $260,000 Purchases of plant assets: $215,000 Purchases of inventories: $458,000 Proceeds from sale of Keynes common stock: $1,200,000 The land that was sold had an original cost to Keynes of $189,000. Determine net cash provided (used) by investing activities for Keynes for 2020.
Net income Cash dividends paid to stockholders Cash proceeds from sale of land Cash proceeds from...
Net income Cash dividends paid to stockholders Cash proceeds from sale of land Cash proceeds from bank loan Cash payment (principal) on bank loan Cash paid to purchase equipment $ 8,500 2,200 3,100 5,600 1,300 4,400 The company would report net cash provided by (used in) financing activities of: Multiple Choice $(3,000). $2,100. oooo $5,600. $6,900.
Island Cove Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000...
Island Cove Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000 Sale price of bonds: 104 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on October 31 and April 30 Required: Prepare the following general journal entries. a. The issuance of the bonds on May 1, 20-A. The first interest payment Redeem the bonds at maturity
Net income Cash dividends paid to stockholders Cash proceeds from sale of land Cash proceeds from...
Net income Cash dividends paid to stockholders Cash proceeds from sale of land Cash proceeds from bank loan Cash payment (principal) on bank loan Cash paid to purchase equipment $9,500 2,400 3,200 6,200 1,500 4,800 The company would report net cash provided by (used in) investing activities of: Multiple Choice Ο $(1,600). Ο $(1,700). Ο 56.200. $6,200. Ο 59,500.
Roof Top Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $400,000...
Roof Top Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $400,000 Sale price of bonds: 98 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on October 31 and April 30 Required: Prepare the following general journal entries. a. The issuance of the bonds on May 1, 20-A. The first interest payment. Redeem bonds at maturity D C D C - Format VBI U - Date Description P.R. Debit Credit
Concord Corporation has $2930000 of short-term debt it expects to retire with proceeds from the sale...
Concord Corporation has $2930000 of short-term debt it expects to retire with proceeds from the sale of 82000 shares of common stock. There is no contractual agreement to retire the debt with the stock sale proceeds. If the stock is sold for $25 per share subsequent to the balance sheet date, but before the balance sheet is issued, what amount of short-term debt could be excluded from current liabilities? A) $880000. B) $2930000. C) $2050000. D) $0, No contractual agreement...
Bond sale.
Straight Line Amortization #2 Bonds Bonds issue 12/31/2xx1 $ 600,000 Face rate of Bond 6.00% Sold at Market rate of 8.00% Term in years 4 Interest paid annually at 12/31 Interest expense recorded quarterly A. Show computaions to get net proceeds from Bond sale B. Show JE to record sale @ 12/31/2xx1 C. Show 3 JE's to record interest expense for 3/31, 6/30,9/30 of 2xx2; was not paid D. knowing 3 quarters of expense had been recorded in...
Determining the proceeds from Bond Issues Madison Corporation is authorized to issue $420,000 of 6-year bonds dated June 30, 2019, with a stated rate of interest of 11%. Interest on the bonds is payable semiannually, and the bonds are sold on June 30, 2019. Required: Determine the proceeds that the company will receive if it sells the following: (Click here to access the tables to use with this exercise and round your answers to two decimal places, if necessary.) 1....
Net income Cash dividends paid to stockholders Cash proceeds from sale of land Cash proceeds from bank loan Cash payment (principal) on bank loan Cash paid to purchase equipment $ 8,500 2,200 3,100 5,600 1,300 4,400 The company would report net cash provided by (used in) financing activities of: Multiple Choice $(3,000). $2,100. oooo $5,600. $6,900.
Island Cove Corporation had the following bond issue: Date of issue/sale: May 1, 20-A Principal: $500,000 Sale price of bonds: 104 Life of bonds: 10 years Stated rate: 6% a year payable semiannually on October 31 and April 30 Required: Prepare the following general journal entries. a. The issuance of the bonds on May 1, 20-A. The first interest payment Redeem the bonds at maturity
Net income Cash dividends paid to stockholders Cash proceeds from sale of land Cash proceeds from bank loan Cash payment (principal) on bank loan Cash paid to purchase equipment $9,500 2,400 3,200 6,200 1,500 4,800 The company would report net cash provided by (used in) investing activities of: Multiple Choice Ο $(1,600). Ο $(1,700). Ο 56.200. $6,200. Ο 59,500.
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