1American Precision Industries Inc. issued a corporate bond with a face value of $10,000 at 96....
1American Precision Industries Inc. issued a corporate bond with a face value of $10,000 at 96. Which of the following statements is true?
| a. |
The stated rate of interest was higher than the market rate of interest and the bond sold for $10,200. |
|
| b. |
The stated rate of interest was higher than the market rate of interest and the bond sold for $10,960. |
|
| c. |
The stated rate of interest was lower than the market rate of interest and the bond sold for $9,600. |
|
| d. |
The stated rate of interest was lower than the market rate of interest and the bond sold for $9,040. |
True
False
3 Tracie's Trike Inc. prepares its Statement of Cash Flows using the indirect method. Which accounts does the company need to analyze in calculating net cash flows from financing activities?
| a. |
Notes Payable (long-term) |
|
| b. |
Inventory. |
|
| c. |
Prepaid Insurance. |
|
| d. |
Equipment. |
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
1American Precision Industries Inc. issued a corporate bond with a
face value of $10,000 at 96....
1. Assume a bond with a face value of $600,000 was issued to yield (sold for)...
1. Assume a bond with a face value of $600,000 was issued to
yield (sold for) $588,000 in the market. Which of the following is
true on the issue date?
2. Which of the following is a true statement?
3. Which of the following is not considered one of the four most
common financial statements?
Assume a bond with a face value of $600,000 was issued to yield (sold for) $588,000 in the market. Which of the following is true...
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...
1. The price of a bond is equal to a. The present value of the face...
1. The price of a bond is equal to a. The present value of the face amount plus the present value of the stated interest payments. b. The future value of the face amount plus the future value of the stated interest payments. c. The present value of the face amount only. d. The present value of the interest only. 2. Which of the following is true for bonds issued at a discount? a. The stated interest rate is greater...
A company issued a 5 year, 7% B/P with a face value of $300,000 at 103...
A company issued a 5 year, 7% B/P with a face value of $300,000 at 103 when the market rate if 6%. Interest payments are made semiannually. Using the effective interest method, what would be the journal entry for the first payment? a. debit interest expense $10,500, debit bond premium $1,230; credit cash $11,730 b. debit interest expense $10,500; credit bond discount $1,230, credit cash $9,270 c. debit interest expense $9,270, debit bond premium $1,230; credit cash $10,500 d. debit...
Victor Company issued bonds with a $600,000 face value and a 6% stated rate of interest...
Victor Company issued bonds with a $600,000 face value and a 6% stated rate of interest on January 1, Year 1. The bonds carried a 5-year term and sold for 96. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year. The amount of cash flow from operating activities on the December 31, Year 3 statement of cash flows would be:
On January 1, your company issues a 5-year bond with a face value of $10,000 and...
On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 9% The market interest rate is 7%. The issue price of the bond was $11,046. Using the effective-interest method of amortization, the interest expense for the first year ended December 31 would be: Multiple Choice $700.00. $900.00. $994.14 $773.22
A U.S. corporate issued bond is currently trading for $932. Which of the following statements are...
A U.S. corporate issued bond is currently trading for $932. Which of the following statements are either likely or certainly true? (choose all that apply): 1) The bond's coupon rate is higher than its YTM. 2) The bond's coupon rate is lower than its YTM. 3) The bond's face value is $1000. 4) The bond pays interest semiannually. 5) This bond would be considered a discount bond at this time. 6) This bond would be considered a junk bond at...
1. Assuming that a bond is originally issued at a premium, the carrying value of the bond liability will decrease over t...
1. Assuming that a bond is originally issued at a premium, the carrying value of the bond liability will decrease over the life of the bond. This statement is True or False 2.On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 resulting in a 4% discount. They had a 20 year term and a stated rate of interest of 7%. Based on this information, the carrying value of the...
On January 1, 2018, Parker Company issued bonds with a face value of $53,000, a stated...
On January 1, 2018, Parker Company issued bonds with a face value of $53,000, a stated rate of interest of 11 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 13 percent at the time the bonds were issued. The bonds sold for $49,272. Parker used the effective interest rate method to amortize the bond discount. Required: a. Prepare an amortization table. b. At what...
A bond issued at a discount typically has a market price that decreases toward maturity value....
A bond issued at a discount typically has a market price that decreases toward maturity value. O 0 True False Which type of lease will not increase a company's assets or liabilities? O A. a lease in which title is transferred to the lessee at the end of the lease term OB. a finance lease O c. an operating lease OD. the present value of lease payments is 90% or more of the market value of the leased asset Under...
1. Assume a bond with a face value of $600,000 was issued to
yield (sold for) $588,000 in the market. Which of the following is
true on the issue date?
2. Which of the following is a true statement?
3. Which of the following is not considered one of the four most
common financial statements?
Assume a bond with a face value of $600,000 was issued to yield (sold for) $588,000 in the market. Which of the following is true...
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...
1. The price of a bond is equal to a. The present value of the face amount plus the present value of the stated interest payments. b. The future value of the face amount plus the future value of the stated interest payments. c. The present value of the face amount only. d. The present value of the interest only. 2. Which of the following is true for bonds issued at a discount? a. The stated interest rate is greater...
On January 1, your company issues a 5-year bond with a face value of $10,000 and a stated interest rate of 9% The market interest rate is 7%. The issue price of the bond was $11,046. Using the effective-interest method of amortization, the interest expense for the first year ended December 31 would be: Multiple Choice $700.00. $900.00. $994.14 $773.22
On January 1, 2018, Parker Company issued bonds with a face value of $53,000, a stated rate of interest of 11 percent, and a five-year term to maturity. Interest is payable in cash on December 31 of each year. The effective rate of interest was 13 percent at the time the bonds were issued. The bonds sold for $49,272. Parker used the effective interest rate method to amortize the bond discount. Required: a. Prepare an amortization table. b. At what...
A bond issued at a discount typically has a market price that decreases toward maturity value. O 0 True False Which type of lease will not increase a company's assets or liabilities? O A. a lease in which title is transferred to the lessee at the end of the lease term OB. a finance lease O c. an operating lease OD. the present value of lease payments is 90% or more of the market value of the leased asset Under...
Most questions answered within 3 hours.
-
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 1 hour ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 2 hours ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 4 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 5 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 6 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 8 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 7 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 8 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 8 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 8 hours ago -
Pattern Corporation acquired all of Science
Company's outstanding stock on January 1, 2016 for $600,000 cash....
asked 8 hours ago -
Here are all accounts Tyler Co. maintains.
Tax expenses $4,750
Common stocks $48,840
SG&A expenses $2,500...
asked 8 hours ago