Question 27

15. Serenity Company issued $100,000 of 6%, 10-year bonds when the market rate of interest was 5%. The proceeds from this bond issue were $107,722. Using the effective interest rate method of amortization, which of the following statements is true? Assume that interest is paid annually. a.Interest payments to bondholders each period will be $6,464. b.Amortization of the premium for the first interest period will be $1,464. c.Amortization of the premium for the first interest period will be $614. d.Interest payments to bondholders each period will be $5,000.

a. On January 1, 20X1, your firm issues a $15,000, 4-year, 5% bond with interest payable annually for $13,056. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond. DATE Debit Credit XIX b. Journalize the first annual interest payment on December 31, 20X1. DATE Debit Credit XIX c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.) DATE Debit Credit XIX d. On January 1, 20X2, the bonds are called at 99. Journalize this transaction. DATE Debit Credit XIX

Pharoah Inc. issues $4,500,000, 5-year, 14% bonds at 104, with interest payable annually on January 1. The straight-line method is used to amortize bond premium. what is the account title or explanation? what is debit or credited ?

. On 1/1/21, Ehrlich Co. issued 4 year bonds with a face value of $700,000. The stated (bond) rate is 8%, payable semiannually on 1/1 and 7/1. The market rate at the time of issuance was 10%.   a. Calculate the issue price of the bonds. b. Prepare the journal entry for the issuance of the bonds. c. Complete the amortization table below. Date cash paid interest expense amortization carrying value 1/1/21 7/1/21 1/1/22 7/1/22 d. Prepare the journal entries for the 7/1/21 interest payment and amortization, 12/31/21 interest accrual and amortization, and 1/1/22 interest payment.   e. Prepare the journal entry for retirement of the bonds at maturity f. Assume instead that the bonds were redeemed on 7/1/22 at 102. Prepare the journal entry.

On January 1 of Year 1, Congo Express Airways issued $5,100,000 of 7%, bonds that pay interest semiannually on January 1 and July 1. The bond issue price is $4,775,000 and the market rate of interest for similar bonds is 8%. The bond premium or discount is being amortized using the straight-line method at a rate of $12,500 every 6 months. The life of these bonds is: Multiple Choice 9 years. 13 years. 26 years. 41 years. 38 years

1.  Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%. The bonds pay interest semi-annually. Assume that the bonds were issued for $565,710. Prepare an amortization table for the first three payments. Semiannual Interest Period Semiannual Interest Expense Semiannual Interest Payment Amortization of Discount Ending Carrying Value 1         2         3         PLEASE NOTE: All dollar amounts will be rounded to whole dollars with "$" and commas as needed (i.e. $12,345).

On January 1, the Ryan Company issued $400,000 of 6%, 6-year bonds when the market rate of interest was 8%. The bonds pay interest semiannually on June 30 and December 31.  How much are the proceeds that Ryan will receive from the bond issue date? Select one: A. $399,800 B. $280,400 C. $362,460 D. $360,032

a. On January 1, 20X1, your firm issues a $15,000, 4-year, 5% bond with interest payable annually for $13,056. At the time of the issuance, market rates are 9%. Journalize the issuance of the bond.  b. Journalize the first annual interest payment on December 31, 20X1. c. Journalize the amortization of the premium/discount on December 31, 20X1. (If necessary, round to the nearest dollar.)  d. On January 1, 20X2, the bonds are called at 99. Journalize this transaction.

On January 1, a company issues bonds: Par Value: $2,000,000 Bond Term, in years: 10 Interest Payments: 2x/year Stated Interest Rate: 8% Market Interest Rate: 6% How much will the bond sell for? What dollar amount will be booked to Bonds Payable on the date of sale? How much is Interest Expense on the FIRST interest payment? How much is the amortization of the Bond Premium on the FIRST interest payment? How much is the Interest Expense on the SECOND interest payment? How much is the Amortization of the Premium on the SECOND interest payment?

On January 1, Year 1, Denver Company issued bonds with a face value of $87,000, a stated rate of interest of 8%, and a 5-year term to maturity. The bonds were sold at 102.5. Denver uses the straight-line method to amortize bond discounts and premiums. What is the amount of interest expense during Year 1? Multiple Choice O O O O $7,134 $6,960 $7,395 $6,525

57 On January 1, 2024, Reyes Recreational Products issued $100,000, 11%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $96,895 to yield an annual return of 12%. Required: 1. Prepare an amortization schedule that determines interest at the effective interest rate. 2. Prepare an amortization schedule by the straight-line method. 3. Prepare the journal entries to record interest expense on June 30, 2026, by each of the two approaches. 5. Assuming the market rate is still 12%, what price would a second investor pay the first investor on June 30, 2026, for $12,000 of the bonds? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1. FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 5 Prepare an amortization schedule that determines interest at the effective interest rate. Note: Enter your answers in whole dollars.…

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Mm.33. Subject  :- account

For the given corporate bond, whose annual simple interest rate is provided, find the semiannual simple interest payment and the total interest earned over the life of the bond. Assume 365 days in a year. $11,900 Company A, 10-year bond, 3.294% The semiannual interest on the corporate bond is $. (Round to the nearest cent as needed.)

21. On January 1, 2018, when the market rate of interest was 6% (APR), Habs Company issued two-year bonds with a maturity value of $1,000. The bonds have a 4% stated rate (APR) and pay interest semiannually on June 30 and December 31. sdr 11467 M = 4 a) Calculate the bond's issue price and its discount as of the date of issue. b) How much of the bond's discount is amortized after the first coupon is paid?

On January 1, the Ryan Company issued $400,000 of 6%, 6-year bonds when the market rate of interest was 8%. The bonds pay interest semiannually on June 30 and December 31.  How much are the proceeds that Ryan will receive from the bond issue date? Select one: A. $360,032 B. $399,800 C. $362,460 D. $280,400   *if there is excel function/shortcut show it