On 3-1-2015, Montgomery Corporation issued $400,000 (face value) of 4% bonds payable (i.e., the stated rate is 4%) for $340,492.
Each bond has a face value of $1,000. The bonds are dated 3-1-2015 and mature 2-28-2025. Interest is paid semiannually on 8-31 and 2-28.
The market rate of interest on similar bonds was 6% at the time of issue (i.e., 3-1-2015).
You may want to prepare an amortization schedule, as of the time of issue, for the first couple periods.
Related to the bonds, what will be the amount of interest expense reported by Montgomery Corporation on its 2015 income statement ?
On 3-1-2015, Montgomery Corporation issued $400,000 (face value) of 4% bonds payable (i.e., the stated rate...
Victor Company issued bonds with a $400,000 face value and a 3% stated rate of interest on January 1, Year 1. The bonds carried a 5-year term and sold for 93. Victor uses the straight-line method of amortization. Interest is payable on December 31 of each year. The amount of interest expense appearing on the December 31, Year 3 income statement would be:
On May 1, 2014 Peter Tools issued bonds payable with a face value of $1,400,000 at 104 plus accrued interest. They are registered bonds dated Jan 1, 2014, bear interest at 9% payable semiannually on Jan 1 and July 1, and mature Jan 1, 2024. The company uses straight-line amortization. Write the entries for 2014 and 2015
On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $480 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. Determine the price of the bonds on September 30, 2018. Table values are based on: n = i = Cash Flow Amount Present Value Interest Principal Price of bonds
Problem 8 Rockne, Inc. issued $500,000 face value of convertible 10-year, 11% stated rate bonds on July 1, 2014. The interest is payable semiannually on December 31 and June 30. The discount in connection with the issue was $4,750, which is amortized monthly using the straight-line basis. The bonds are convertible after one year into five shares of Rockne's common stock (no par value) for each $1,000 of bonds. On October 1, 2015, $150,000 face value of the bonds were...
On January 1, 2017, Concord Corporation issued eight-year bonds with a face value of $6,300,000 and a stated interest rate of 6%, payable semiannually on starting in July on July 1 and January 1. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6% 0.627 Present value of 1 for 8 periods at 8% 0.540 Present value of 1 for 16 periods at 3% 0.623 Present value of 1 for 16...
On September 30, 2018, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $280 million. The bonds mature on September 30, 2038 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of...
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $280 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. ((EV of $1. PV of $1. FVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds...
On January 1, 2017, Sheffield Corp. issued ten-year bonds with a face amount of $5800000 and a stated interest rate of 8% payable annually on January 1 . The bonds were priced to yield 10%. Present value factors are as follows: At 8% At 10% Present value of 1 for 10 periods 0.463 0.386 Present value of an ordinary annuity of 1 for 10 periods 6.710 6.145. The total issue price of the bonds was... 1. A company issues $...
The Wildcat Company issued 8% bonds(stated rate), dated January 1, with a face amount of $20 million. The bonds mature on December 31, year 10. For bonds of similar risk at maturity, the market yield is 10%. Interest is paid semiannually on June 30 and December 31. 1. Calculate the Bond Price and Enter in the Yellow Highlighted Cell: Coupon Payment PV Face Value PV Total Bond Price: 2. Record the journal entry to record the issuance of the bond...
On September 30, 2021, the San Fillipo Corporation issued 8% stated rate bonds with a face amount of $120 million. The bonds mature on September 30, 2041 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. (CEV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of S1 and PVAD 5.1) (Use appropriate factor(s) from the tables provided.) Required: Determine the price of the bonds on...