Homework Answers
Solution:
| Computation of Present value of note | |||
| Table values are based on: | |||
| n= | 3 | ||
| i= | 12.00% | ||
| Cash flow | Table Value | Amount | Present Value |
| Par (Maturity) Value | 0.71178 | $655,000.00 | $466,216 |
| Interest (Annuity) | 2.40183 | $39,300.00 | $94,392 |
| Present value of Note | $560,608 | ||
| Date | Cash interest | Effective interest | Discount amortized | Unamortized discount balance | Present value of note |
| 31-Dec-19 | $94,392 | $560,608 | |||
| 31-Dec-20 | $39,300 | $67,273 | $27,973 | $66,419 | $588,581 |
| 31-Dec-21 | $39,300 | $70,630 | $31,330 | $35,089 | $619,911 |
| 31-Dec-22 | $39,300 | $74,389 | $35,089 | $0 | $655,000 |
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On January 1, 2020, Tiffany and Company issues 3 year bonds payable with a face value...
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Please help with explanation and steps.
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Stacy Company issued five-year, 10% bonds with a face value of
$10,000 on January 1, 2017. Interest is paid annually on December
31. The market rate of interest on this date is 12%, and Stacy
Company receives proceeds of $9,279 on the bond issuance.
Required:
Refer to the tables above for present value factors.
1. Prepare a five-year table to amortize the
discount using the effective interest method.
Note: Round the 12/31/18 interest expense and discount amortized...
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On January 1, 2020, Tiffany and Company issues 3 year bonds
payable with a face value $100,000, stated interest 10% payable at
12/31 each year. Market interest rate is 8%. What should be the
issuance price at 1/1/2020?
Please help with explanation and steps.
6% 1.06000 1.12360 1.19102 1.26248 1.33823 Table 1: Future Value of 1 8% 9% 1.08000 1.09000 1.16640 1.18810 1.25971 1.29503 1.36049 1.41158 1.46933 1.53862 10% 1.10000 1.21000 1.33100 1.46410 1.61051 12% 1.12000 1.25440 1.40493 1.57352 1.76234...
Periods 6% 1.06000 1.12360 1.19102 1.26248 1.33823 Table 1 : Future Value of 1 8% 9% 1.08000 1.09000 1.16640 1.18810 1.25971 1.29503 1.36049 1.41158 1.46933 1.53862 10% 1.10000 1.21000 1.33100 1.46410 1.61051 12% 1.12000 1.25440 1.40493 1.57352 1.76234 Periods an 6% 0.94340 0.89000 0.83962 0.79209 0.74726 Table 2 : Present Value of 1 8% 9% 0.92593 0.91743 0.85734 0.84168 0.79383 0.77218 0.73503 0.70843 0.68058 0.64993 10% 0.90909 0.82645 0.75132 0.68301 0.62092 12% 0.89286 0.79719 0.71178 0.63552 0.56743 Periods いないか Table...
just want to see if I got this right
REQUIRED: Answer each of the following. Be sure to show all calculations in good form. On December 31, 2019, Green Company finished consultation services and accepted in exchange a promissory ote with a face value of $850,000, a due date of December 31, 2022, and a stated rate of 5%, with interest receivable at the end of each vear. The fair value of the services is not readily determinable and the...
also it asked for journal entries for December 31,2019, December
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$50,000 zero-interest bear PROBLES The Problem C. On January 1, 2019, Western sold equipment to Jones Company, accepting a $50,000 zero-interese note to be paid in full at the end of the third year (December 31, 2021). The implicit interest rate is 10%. The presa value factor for a single amount (n=3,1 = 1096) -0.75132 a. At what amount will Western record the sale? Carrying amount of note b. Complete the amortization table below. Schedule of Note discount Amortization Effective...
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Stacy Company issued five-year, 10% bonds with a face value of
$10,000 on January 1, 2017. Interest is paid annually on December
31. The market rate of interest on this date is 12%, and Stacy
Company receives proceeds of $9,279 on the bond issuance.
Required:
Refer to the tables above for present value factors.
1. Prepare a five-year table to amortize the
discount using the effective interest method.
Note: Round the 12/31/18 interest expense and discount amortized...
9) Under the effective-interest method of amortization, the cash payment on each interest pas date will: A) remain the same for each interest period B) decrease if bonds are issued at a premium C) increase if bonds are issued at par D) increase if bonds are issued at a discount 10) Current liabilities fall into two categories, which are referred to as: A) contra liabilities and contingent liabilities B) contingent liabilities and non contingent liabilities C) liabilities of a known...
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