ZuoTi.Pro
Question

On January 1 of this year, Victor Corporation sold bonds with a face value of $1,510,000 and a coupon rate of 9 percent. The2. Prepare the journal entry to record the interest payment on June 30 of this year. (If no entry 5 required for a transactio3. What bonds payable amount will Victor report on its June 30 balance sheet? VICTOR CORPORATION Balance Sheet (Partial) At J

business   accounting   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1
Table values are based on:
n= 8
i= 3.0%
Cash Flow Amount Present Value
Interest $1,510,000*4.5% =$67,950 $4,76,988 PVAF(i,n) PVIF(i,n)
Principal $1,510,000 $11,92,009 7.01969 0.78941
Price of Bonds $16,68,997
Premium on Bonds issued =$1,668,997 - $1,510,000 =$158,997
Date Accounts and explanation Debit(in $) Credit(in $)
Jan-01 Cash                           16,68,997
Bonds Payable                    15,10,000
Premium on Bonds payable                      1,58,997
Jun-30 Interest expenses                                48,075
Premium on Bonds payable                                19,875
Cash                         67,950
VICTOR CORPORATION
Balance Sheet(Partial)
At June 30
Long-Term Liabilities
Bonds Payable $15,10,000
Unamortized Premium $1,39,122
Net Bonds payable as on June 30 $16,49,122
0 0
Add a comment
Know the answer?
Add Answer to:
On January 1 of this year, Victor Corporation sold bonds with a face value of $1,510,000...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000...

    On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the...

  • Please post step-by-step computations, thank you! On January 1 of this year, Victor Corporation sold bonds...

    Please post step-by-step computations, thank you! On January 1 of this year, Victor Corporation sold bonds with a face value of $1,580,000 and a coupon rate of 8 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1)...

  • On January 1 of this year, Victor Corporation sold bonds with a face value of $1,450,000 and a coupon rate of/ percent....

    On January 1 of this year, Victor Corporation sold bonds with a face value of $1,450,000 and a coupon rate of/ percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. Victor uses the straight-line amortization method and also uses a premium account. Assume an annual market rate of interest of 6 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables...

  • Park Corporation is planning to issue bonds with a face value of $2,001,000 and a coupon...

    Park Corporation is planning to issue bonds with a face value of $2,001,000 and a coupon rate of 10 percent. The bonds mature in 15 years and pay interest semiannually every June 30 and December 31. All of the Donds were sold onJnuary 1 of this year. Park uses the effective-interest amortization method and does not use a premium aCcount. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1. EVA of $1, and...

  • Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value...

    Wookie Company issues 10%, five-year bonds, on January 1 of this year, with a par value of $105,000 and semiannual interest payments. (0) (1) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Un amortized Premium $8,211 7,390 6,569 Carrying Value $113,211 112,390 111,569 (2) Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c)...

  • On January 1, 2013, Loop de Loop Raceway issued 550 bonds, each with a face value...

    On January 1, 2013, Loop de Loop Raceway issued 550 bonds, each with a face value of $1,000, a stated interest rate of 5 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 6 percent, so the total proceeds from the bond issue were $535,288. Loop de Loop uses the straight-line bond amortization method Required: 1. Prepare a bond amortization schedule. Changes During the Period Period...

  • On January 1, 2013, Loop de Loop Raceway issued 700 bonds, each with a face value...

    On January 1, 2013, Loop de Loop Raceway issued 700 bonds, each with a face value of $1,000, a stated interest rate of 6 percent paid annually on December 31, and a maturity date of December 31, 2015. On the issue date, the market interest rate was 7 percent, so the total proceeds from the bond issue were $681,631. Loop de Loop uses the straight-line bond amortization method. Required: 1. Prepare a bond amortization schedule. Changes During the Period Period...

  • On January 1, 2021, Fowl Products issued $77 million of 7%, 10-year convertible bonds at a...

    On January 1, 2021, Fowl Products issued $77 million of 7%, 10-year convertible bonds at a net price of $78.3 million. Fowl recently issued similar, but nonconvertible, bonds at 97 (that is, 97% of face amount). The bonds pay interest on June 30 and December 31 Each $1,000 bond is convertible into 25 shares of Fowl's no par common stock. Fowl records interest by the straight-line method. On June 1, 2023, Fowl notified bondholders of its intent to call the...

  • Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value...

    Wookie Company issues 8%, five-year bonds, on January 1 of this year, with a par value of $92,000 and semiannual interest payments. (0) (1) (2) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $7,951 7,156 6,361 Carrying Value $99,951 99, 156 98,361 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c)...

  • Wookie Company issues 6%, five-year bonds, on January 1 of this year, with a par value...

    Wookie Company issues 6%, five-year bonds, on January 1 of this year, with a par value of $102,000 and semiannual interest payments. (0) (1) (2) Semiannual Period-End January 1, issuance June 30, first payment December 31, second payment Unamortized Premium $8,151 7,336 6,521 Carrying Value $110,151 109,336 108,521 Use the above straight-line bond amortization table and prepare journal entries for the following. (a) The issuance of bonds on January 1. (b) The first interest payment on June 30. (c) The...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT