Homework Answers
Year 2 income statement will show interest expense of 6% *1000 = 60$ so answer is option 1
Option 2 is wrong since this is a financing activity not operational activity
option 3 in balance sheet total liabilities will be net of interest expense paid. so its not 1000
option 3 it is cash outflow of 60$ from financing activities
Add Answer to:
On October 1, Year 1 Coker Company issued a $1,000 face value discount note that carried...
Madison Company issued an interest-bearing note payable with a face value of $25,200 and a stated...
Madison Company issued an interest-bearing note payable with a face value of $25,200 and a stated interest rate of 8% to Metropolitan Bank on August 1, Year 1. The note carried a one-year term. Based on this information alone, what is the amount of cash flow from operating activities reported on Madison’s Year 1 statement of cash flows?
On January 1, Year 1, Parker Company issued bonds with a face value of $77,000, a stated rate of interest of 8 p...
On January 1, Year 1, Parker Company issued bonds with a face value of $77,000, a stated rate of interest of 8 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 10 percent at the time the bonds were issued. The bonds sold for $71,162. Parker used the effective interest rate method to amortize the bond discount. (Round your intermediate calculations and final answers to...
Most Solutions, Inc., issued 11% bonds, dated January 1, with a face amount of $800 million on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market...
Most Solutions, Inc., issued 11% bonds, dated January 1, with a face amount of $800 million on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market yield is 13%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2018 Cash (price) Discount on bonds (difference) 708,236, 800 91,763,200 Bonds payable (face amount)...
Madison Company issued an interest-bearing note payable with a face value of $11,400 and a stated...
Madison Company issued an interest-bearing note payable with a face value of $11,400 and a stated interest rate of 8% to Metropolitan Bank on August 1, Year 1. The note carried a one-year term. Based on this information alone, what is the amount of cash flow from operating activities reported on Madison’s Year 1 statement of cash flows? $0 $912 $11,400 $380
Line Tonowiny Mornalon appies lo me quesnonis displayed bew.) On January 1, Year 1, Jones Company...
Line Tonowiny Mornalon appies lo me quesnonis displayed bew.) On January 1, Year 1, Jones Company issued bonds with a $170,000 face value, a stated rate of interest of 7.0%, and a 5-year term to maturity. The bonds were issued at 98. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method. What is the amount of cash outflow from operating activities shown on Jones' statement of cash...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,840 million...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,840 million on July 1, 2021, at a price of $1,810 million. For bonds of similar risk and maturity, the market yleld is 10%. Interest is paid semi-annually on June 30 and December 31. Required: What would be the amount(s) related to the bonds that Agee would report In its statement of cash flows for the year ended December 31, 2021, If It uses the Indirect...
Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $520 million...
Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $520 million on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2021 Cash (price) Discount on bonds (difference) Bonds payable (face amount) 464,911,512 55,088,488 520,000,000...
Victor Company issued bonds with a $725,000 face value and a 6% stated rate of interest...
Victor Company issued bonds with a $725,000 face value and a 6% stated rate of interest on January 1 Year 1. The bonds carried a 5-year! term and sold for 95. 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: Multiple Choice Ο Ο Ο Ο Riley Company borrowed $34,000 on April 1. Year 1 from the...
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:
Blackburn Inc. has issued 30-year $1,000 face value, 10% annual coupon bonds, with a yield to...
Blackburn Inc. has issued 30-year $1,000 face value, 10% annual coupon bonds, with a yield to maturity of 9.0%. The annual interest payment for the bond is. Select one: a. $100 b. $90 c. $50 d. $45 Clear my choice
On January 1, Year 1, Parker Company issued bonds with a face value of $77,000, a stated rate of interest of 8 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 10 percent at the time the bonds were issued. The bonds sold for $71,162. Parker used the effective interest rate method to amortize the bond discount. (Round your intermediate calculations and final answers to...
Most Solutions, Inc., issued 11% bonds, dated January 1, with a face amount of $800 million on January 1, 2018. The bonds mature in 2028 (10 years). For bonds of similar risk and maturity the market yield is 13%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2018 Cash (price) Discount on bonds (difference) 708,236, 800 91,763,200 Bonds payable (face amount)...
Line Tonowiny Mornalon appies lo me quesnonis displayed bew.) On January 1, Year 1, Jones Company issued bonds with a $170,000 face value, a stated rate of interest of 7.0%, and a 5-year term to maturity. The bonds were issued at 98. Interest is payable in cash on December 31st of each year. The company amortizes bond discounts and premiums using the straight-line method. What is the amount of cash outflow from operating activities shown on Jones' statement of cash...
Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $1,840 million on July 1, 2021, at a price of $1,810 million. For bonds of similar risk and maturity, the market yleld is 10%. Interest is paid semi-annually on June 30 and December 31. Required: What would be the amount(s) related to the bonds that Agee would report In its statement of cash flows for the year ended December 31, 2021, If It uses the Indirect...
Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $520 million on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows: January 1, 2021 Cash (price) Discount on bonds (difference) Bonds payable (face amount) 464,911,512 55,088,488 520,000,000...
Victor Company issued bonds with a $725,000 face value and a 6% stated rate of interest on January 1 Year 1. The bonds carried a 5-year! term and sold for 95. 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: Multiple Choice Ο Ο Ο Ο Riley Company borrowed $34,000 on April 1. Year 1 from the...
Blackburn Inc. has issued 30-year $1,000 face value, 10% annual coupon bonds, with a yield to maturity of 9.0%. The annual interest payment for the bond is. Select one: a. $100 b. $90 c. $50 d. $45 Clear my choice
Most questions answered within 3 hours.
-
1.
A hemophiliac male mates with a healthy female. what are the
possible genotypes for the...
asked 12 minutes ago -
You could argue that even though Rockefeller clearly had
enormous market power (90% of the market)...
asked 27 minutes ago -
At the beginning of the year, Palermo Brothers, Inc., purchased
a new plastic water bottle making...
asked 26 minutes ago -
Calculate the change in the Gibbs energy of the system for the
following processes: a) 6.0...
asked 15 minutes ago -
After reading the Primary Care scenario in the Allied Health
Community, what could have been implemented...
asked 20 minutes ago -
A solution is prepared by dissolving 11.60 g of a mixture of
sodium carbonate and sodium...
asked 25 minutes ago -
1. Mini Case Study: Suppose that, in the future, most jobs will
be bid upon by...
asked 27 minutes ago -
Plantinga argues for the view that there is no solution to the
problem of moral evil....
asked 22 minutes ago -
For this Discussion, you examine a case study of
hearing-impaired children who developed their own language...
asked 27 minutes ago -
The moment of inertia of a disk rotating about its axis of
symmetry is Icm=1/2MR^2
The...
asked 34 minutes ago -
When using a relational database what makes data
formatting so important and critical to the functions...
asked 45 minutes ago -
The following temperatures show the (fictional) daily low
measured at O'Hare airport every January 1st from...
asked 1 hour ago