Homework Answers
Calculate present value of periodic interest :
Present value of periodic interesst = 100000*6%*7.36009 = $44161
So answer is d) $44161
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?ltem 3-Score: 0% (0 of 1) Assume that Northern Petroleum Inc. issued the following bond on...
Refer to the bond details in Problem 10-3A. Required: 1. Compute the total bond interest expense...
Refer to the bond details in Problem 10-3A.
Required:
1. Compute the total bond interest expense over the bonds'
life.
2. Prepare an effective interest amortization table like the one
in Exhibit 10B.2 for the bonds' life.
3. Prepare the journal entries to record the first two interest
payments.
We were unable to transcribe this imagePimcipal. These arouns are STIUWIII LOU value after deducting the amortized premium in column C from the prope shows the premium's reduction by periodic amortization....
Exercise 9-90 (Appendix 9A) Calculating Bond Issue Price On January 1, 2020, University Theatres issued $500,000...
Exercise 9-90 (Appendix 9A) Calculating Bond Issue Price On January 1, 2020, University Theatres issued $500,000 face value of bonds. The stated rate is 8%, and interest is paid semiannually on June 30 and December 31. The bonds mature in 15 years. If required, round your answers to the nearest whole dollar. Follow the format shown in present value tables as you complete the requirements below. Required: a. Assuming the market rate of interest is 6%, calculate at what price...
Present Value of Bonds Payable; Premium Moss Co. issued $610,000 of five-year, 13% bonds, with interest...
Present Value of Bonds Payable; Premium Moss Co. issued $610,000 of five-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate of 12%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. $ 632,442 X Feedback Check My Work Remember, the selling price of a bond is the sum of the present values of: the face amount of the bonds due at...
Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Danzer Industries Inc. issued...
Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Danzer Industries Inc. issued $1,300,000 of 7-year, 10% bonds at a market effective interest rate of 11%, receiving cash of $1,237,668. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. If...
Instructons Campbell Inc. produces and sets outdoor equipment. On July 1, 2041, Campbell issued $73,900,000 of...
Instructons Campbell Inc. produces and sets outdoor equipment. On July 1, 2041, Campbell issued $73,900,000 of 10 year, 11% bonds at a market (effective Interest rate of 9% receiving cash of 583,512,668. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2011 2. Journalize the...
Ex. 2-Calculate market price of a bond. On January 1, 2014 Lance Co. issued five-vear bonds with a face value of $700.0...
Ex. 2-Calculate market price of a bond. On January 1, 2014 Lance Co. issued five-vear bonds with a face value of $700.000 and a stated Interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value table factors are: Present value of 1 for 5 periods at 10% .62092 Present value of 1 for 5 periods at 12% .56743 Present value of 1 for 10 periods at 5% .61391 Present...
A bond has the following terms: January 1, 2000, settlement date January 1, 2020, maturity date...
A bond has the following terms: January 1, 2000, settlement date January 1, 2020, maturity date 10 percent semiannual coupon 12 percent yield $100 redemption value Frequency is semiannual 30/360 basis =PRICE("1/1/2000","1/1/2020",10%,12%,100,2,0)=84.954 Bond Problems 1. Calculate the price of a 20-year 10% coupon bond with a par value of $1,000. The bond should be price to provide a yield to maturity of 11%. Interest payments are paid semiannually. 2. Calculate the price of a 20-year 10% coupon bond with a...
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1....
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January (b) Prepare the general journal entry to record the first interest payment on June 30. 2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date...
2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid...
2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date was 10%, and the issuer received $95,016 cash for the bonds. Prepare a journal entry to record the issuance of the bond On the first semiannual interest date, what amount of cash should be paid to the holders of these bonds for interest? On January 1, ABC company issued a 12%, 10-year bond with a...
Refer to the bond details in Problem 10-4A (attached photo). Required: 1. Prepare the January 1...
Refer to the bond details in Problem 10-4A (attached photo).
Required:
1. Prepare the January 1 journal entry to record the bonds'
issuance.
2. Determine the total bond interest expense to be recognized
over the bonds life.
3. Prepare an effective interest amortization table like the one
in Exhibit 10B.1 for the bonds' first two years.
4. Prepare journal entries to record the first two interest
payments.
J UHUU UU ILIU te nisl two interest payments. Curryy vuIC PLODU Legacy...
Refer to the bond details in Problem 10-3A.
Required:
1. Compute the total bond interest expense over the bonds'
life.
2. Prepare an effective interest amortization table like the one
in Exhibit 10B.2 for the bonds' life.
3. Prepare the journal entries to record the first two interest
payments.
We were unable to transcribe this imagePimcipal. These arouns are STIUWIII LOU value after deducting the amortized premium in column C from the prope shows the premium's reduction by periodic amortization....
Present Value of Bonds Payable; Premium Moss Co. issued $610,000 of five-year, 13% bonds, with interest payable semiannually, at a market (effective) interest rate of 12%. Determine the present value of the bonds payable, using the present value tables in Exhibit 5 and Exhibit 7. Round to the nearest dollar. $ 632,442 X Feedback Check My Work Remember, the selling price of a bond is the sum of the present values of: the face amount of the bonds due at...
Bond Discount, Entries for Bonds Payable Transactions On July 1, Year 1, Danzer Industries Inc. issued $1,300,000 of 7-year, 10% bonds at a market effective interest rate of 11%, receiving cash of $1,237,668. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. If...
Instructons Campbell Inc. produces and sets outdoor equipment. On July 1, 2041, Campbell issued $73,900,000 of 10 year, 11% bonds at a market (effective Interest rate of 9% receiving cash of 583,512,668. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, 2011 2. Journalize the...
Ex. 2-Calculate market price of a bond. On January 1, 2014 Lance Co. issued five-vear bonds with a face value of $700.000 and a stated Interest rate of 12% payable semiannually on July 1 and January 1. The bonds were sold to yield 10%. Present value table factors are: Present value of 1 for 5 periods at 10% .62092 Present value of 1 for 5 periods at 12% .56743 Present value of 1 for 10 periods at 5% .61391 Present...
1) Johanna Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January (b) Prepare the general journal entry to record the first interest payment on June 30. 2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date...
2) A company issued 9%, 10-year bonds with a par value of $100,000. Interest is paid semiannually. The market interest rate on the issue date was 10%, and the issuer received $95,016 cash for the bonds. Prepare a journal entry to record the issuance of the bond On the first semiannual interest date, what amount of cash should be paid to the holders of these bonds for interest? On January 1, ABC company issued a 12%, 10-year bond with a...
Refer to the bond details in Problem 10-4A (attached photo).
Required:
1. Prepare the January 1 journal entry to record the bonds'
issuance.
2. Determine the total bond interest expense to be recognized
over the bonds life.
3. Prepare an effective interest amortization table like the one
in Exhibit 10B.1 for the bonds' first two years.
4. Prepare journal entries to record the first two interest
payments.
J UHUU UU ILIU te nisl two interest payments. Curryy vuIC PLODU Legacy...
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