Par value | *Price | = | Selling price |
380000 | *129 3/8 | 491625 | |
Cash flow | Table value | Present value | |
380000 | *0.4120 | = | 156560 |
17100 | 19.6004 | = | 335167 |
Price of bonds | 491727 | ||
Difference for the round off | 102 | ||
Garcia Company issues 9.00%, 15-year bonds with a par value of $380000 and semiannual interest payments....
QS 14-5A Computing bond price LO C2 Garcia Company issues 12.00%, 15-year bonds with a par value of $440,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10.00%, which implies a selling price of 115 1/3. Confirm that the bonds' selling price is approximately correct. Use present value Table B.1 and Table B.3 in Appendix B. (Round all table values to 4 decimal places, and use the rounded table values in calculations....
Garcia Company issues 10.0%, 15-year bonds with a par value of $330,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.0%, which implies a selling price of 119 1/2. Prepare the journal entry for the issuance of these bonds for cash on January 1.
Garcia Company issues 10.5%, 15-year bonds with a par value of $430,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8.5%, which implies a selling price of 114 1/2. Prepare the journal entry for the issuance of these bonds for cash on January 1. View transaction list Journal entry worksheet Record the issue of bonds with a par value of $430,000 at a selling price of 114 1/2. Note: Enter debits before...
Garcia Company issues 10.50%, 15-year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 14.50%, which implies a selling price of 75 1/2. The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 75 1/2, what are the issuer's cash proceeds from issuance of these bonds. Cash proceeds 2. What total amount of bond Interest expense will be recognized...
Garcia Company issues 10%, 15-year bonds with a par value of $230,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 8%, which implies a selling price of 117 14, The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 117 14, what are the issuer's cash proceeds from issuance of these bonds. Cash proceeds 2. What total amount of bond interest expense will be recognized...
Garcia Company issues 12.50%, 15-year bonds with a par value of $470,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 16.50%, which implies a selling price of 81. The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 81, what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of...
Garcia Company issues 9.50%, 15-year bonds with a par value of $410,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 13.50%, which implies a selling price of 79 1/2. The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 79 1/2, what are the issuer's cash proceeds from issuance of these bonds. 2. What total amount of bond interest expense will be recognized over the...
Garcia Company issues 10.50% , 15- year bonds with a par value of $250,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 14.50 % , which implies a selling price of 75 1/2. The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 75 1/2, what are the issuer's cash proceeds from issuance of these bonds. Cash proceeds 2. What total amount of bond interest...
Prepare the journal entry for the issuance of these bonds. Assume the bonds are issued for cash on January 1, 2016. Garcia Company issues 9.00%, 15-year bonds with a par value of $310,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 7.00%, which implies a selling price of 118 2/5. Record the issue of bonds with a par value of $310,000. Note: Enter debits before credits. Date General Journal Debit Credit Jan...
Enviro Company Issues 12.00%, 10-year bonds with a par value of $460,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 9.00%, which implies a selling price of 128.625. The straight-line method is used to allocate interest expense. 1. Using the implied selling price of 128.625. what are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the Ilife of these...