Homework Answers
Answer :
1) is a Schedule that reflected the changes in the carrying value of the bond over its term to maturity
2) Bond Holders must hold their bonds until maturity to receive cash for their investment
Amortization Schedule Contains the Cash interest and the interest Expenses and Carrying Value of the bond in each period
Bond issues with discount will be issues at blew the face value. A bond May be issued as face , at premium or discount. Bond holders will receive the maturity value only at the maturity.
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Help Save & Exit An amortization schedule for a bond issued at a premium: Multiple Choice...
Presented below is a partial amortization schedule for Premium Foods: Help Save & Exit Submit Period...
Presented below is a partial amortization schedule for Premium Foods: Help Save & Exit Submit Period Issue Date Cash Paid Interest Expense Increase in Carrying Value Carrying $4,109 4,100 $3,436 3,409 $664 691 Value $85,980 85,236 84,545 Required: 1. & 2. Record the bond issue assuming the face value of bonds payable is $75,000 and first interest payment. (if no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transaction list...
9 Quiz o Help Save & Exit Subm 17 X2 issued calable bonds on January 1...
9 Quiz o Help Save & Exit Subm 17 X2 issued calable bonds on January 1 2021 The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance un maturity Interest Expense Decrease in Carrying Value Cash Paid $ Date 01/01/2021 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 $11,900 11.900 11.900 11.900 11.900 $11,127 11,057 10.981 72) 843 carrying Value $ 123,629 122,855 122,013 121,094 120.092 119,000 919 10.800 1,002 1.092 X2 buys...
Saved Help Save &Exit Submit Consider a new y issued TPS bond with a 3 year...
Saved Help Save &Exit Submit Consider a new y issued TPS bond with a 3 year maturity, par value of $1,000, and coupon rate of 4.40%. Assume annual coupon payments. Inflation in Coupon Principal Total paymentrepayment payment year just ended Time Par value $1,000.0 $1,024.ee $1,038.34 $1,073.64 1 2.4% 1.4% 3.4% $45.06 $45.69 $47.24 0 45.06 0 45.69 $1,073.64 $ 1,120.88 What is the nominal rate of return on the TIPS bond in the first year? Multiple Choice 6 91%...
4th multiple choice) 106,000 Eco 215, 00-01.. Manage your team... Saved Help Save & Exit On...
4th multiple choice) 106,000
Eco 215, 00-01.. Manage your team... Saved Help Save & Exit On June 1, Cline paid $911,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn's assets and liabilities on Jun 1 follow: Cash Accounts receivable Capitalized software costs Goodwill Liabilities Net assets $ 161,000 194,000 345,000 168,000 (159,000) $ 709,000 On June 1, Renn's accounts receivable had a fair value of $143,000. Additionally, Renn's in-process research...
1. Assuming that a bond is originally issued at a premium, the carrying value of the bond liability will decrease over t...
1. Assuming that a bond is originally issued at a premium, the carrying value of the bond liability will decrease over the life of the bond. This statement is True or False 2.On January 1, Year 1 Residence Company issued bonds with a $50,000 face value. The bonds were issued at 96 resulting in a 4% discount. They had a 20 year term and a stated rate of interest of 7%. Based on this information, the carrying value of the...
Help Save & Exit Submit On January 1, 2021, Anne Teak Furniture issued $100,000 of 10%...
Help Save & Exit Submit On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 11 years. The annual market rate for bonds of similar risk and maturity is 12%. What was the issue price of the bonds? (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from...
Osbom's Help Save & Exit Submit On June 30, 2021, L. N. Bean issued $15 million...
Osbom's Help Save & Exit Submit On June 30, 2021, L. N. Bean issued $15 million of its 8% bonds for $14 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2021? Saved Help Save & EX Multiple Choice O $600,000 O $700,000 0 $750,000 o $620,000
Exam Help Save & Exit Submit Discount Mart issues $12 million in bonds on January 1,...
Exam Help Save & Exit Submit Discount Mart issues $12 million in bonds on January 1, 2021. The bonds have a seven year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds Interest Expense Increase in Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $720,000 7 20. 720,000 720,000 $766,538 269.796 773,281 777,011 $46,538 49,796 53,281 57,011 Carrying Value $19,950,544 10,997,082 11,846,878 11, 109,...
Saved Help Save & Exit #1 Auerbach Inc. issued 4% bonds on October 1, 2021. The...
Saved Help Save & Exit #1 Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $490 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $417,103,000, what would the company report for its net bond liability balance after its first interest payment...
please help Submit #4 Ch.9 810 (90 min.) Help Save & Exit On January 1, Parson...
please help
Submit #4 Ch.9 810 (90 min.) Help Save & Exit On January 1, Parson Freight Company issues 70%, 10-year bonds with a par value of $4,000,000. The bonds pay interest semiannually. The market rate of interest is 8.0% and the bond selling price was $3,728.197. The bond issuance should be recorded as: Multiple Choice O Debit Cash $3,728.197. debit interest Expense $271.803, credit Bonds Payable $4.000.000 O Debit Cash $3,728,197, credit Bonds Payable $3728,197 o o Debit Cash...
Presented below is a partial amortization schedule for Premium Foods: Help Save & Exit Submit Period Issue Date Cash Paid Interest Expense Increase in Carrying Value Carrying $4,109 4,100 $3,436 3,409 $664 691 Value $85,980 85,236 84,545 Required: 1. & 2. Record the bond issue assuming the face value of bonds payable is $75,000 and first interest payment. (if no entry is required for a particular transaction/event, select "No Journal Entry Required in the first account field.) View transaction list...
9 Quiz o Help Save & Exit Subm 17 X2 issued calable bonds on January 1 2021 The bonds pay interest annually on December 31 each year. X2's accountant has projected the following amortization schedule from issuance un maturity Interest Expense Decrease in Carrying Value Cash Paid $ Date 01/01/2021 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 $11,900 11.900 11.900 11.900 11.900 $11,127 11,057 10.981 72) 843 carrying Value $ 123,629 122,855 122,013 121,094 120.092 119,000 919 10.800 1,002 1.092 X2 buys...
Saved Help Save &Exit Submit Consider a new y issued TPS bond with a 3 year maturity, par value of $1,000, and coupon rate of 4.40%. Assume annual coupon payments. Inflation in Coupon Principal Total paymentrepayment payment year just ended Time Par value $1,000.0 $1,024.ee $1,038.34 $1,073.64 1 2.4% 1.4% 3.4% $45.06 $45.69 $47.24 0 45.06 0 45.69 $1,073.64 $ 1,120.88 What is the nominal rate of return on the TIPS bond in the first year? Multiple Choice 6 91%...
4th multiple choice) 106,000
Eco 215, 00-01.. Manage your team... Saved Help Save & Exit On June 1, Cline paid $911,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn's assets and liabilities on Jun 1 follow: Cash Accounts receivable Capitalized software costs Goodwill Liabilities Net assets $ 161,000 194,000 345,000 168,000 (159,000) $ 709,000 On June 1, Renn's accounts receivable had a fair value of $143,000. Additionally, Renn's in-process research...
Help Save & Exit Submit On January 1, 2021, Anne Teak Furniture issued $100,000 of 10% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 11 years. The annual market rate for bonds of similar risk and maturity is 12%. What was the issue price of the bonds? (FV of $1. PV of $1. EVA of $1. PVA of $1. FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from...
Osbom's Help Save & Exit Submit On June 30, 2021, L. N. Bean issued $15 million of its 8% bonds for $14 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2021? Saved Help Save & EX Multiple Choice O $600,000 O $700,000 0 $750,000 o $620,000
Exam Help Save & Exit Submit Discount Mart issues $12 million in bonds on January 1, 2021. The bonds have a seven year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds Interest Expense Increase in Carrying Value Cash Paid Date 01/01/2021 06/30/2021 12/31/2021 06/30/2022 12/31/2022 $720,000 7 20. 720,000 720,000 $766,538 269.796 773,281 777,011 $46,538 49,796 53,281 57,011 Carrying Value $19,950,544 10,997,082 11,846,878 11, 109,...
Saved Help Save & Exit #1 Auerbach Inc. issued 4% bonds on October 1, 2021. The bonds have a maturity date of September 30, 2031 and a face value of $490 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2022. The effective interest rate established by the market was 6%. Assuming that Auerbach issued the bonds for $417,103,000, what would the company report for its net bond liability balance after its first interest payment...
please help
Submit #4 Ch.9 810 (90 min.) Help Save & Exit On January 1, Parson Freight Company issues 70%, 10-year bonds with a par value of $4,000,000. The bonds pay interest semiannually. The market rate of interest is 8.0% and the bond selling price was $3,728.197. The bond issuance should be recorded as: Multiple Choice O Debit Cash $3,728.197. debit interest Expense $271.803, credit Bonds Payable $4.000.000 O Debit Cash $3,728,197, credit Bonds Payable $3728,197 o o Debit Cash...
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