13. Scaffolding Co. is contemplating on investing on 3-year, P1,000,000, 12% bonds to be classified as investment measured at amortized cost. Principal is due at maturity but interest is due semi-annually every July 1 and December 31. The current market rate on January 1, 20x1 is 14%. How much is the estimated purchase price of the bonds on January 1, 20x1? b. 952,334 a. 960,964 c. 949,812 d. 936,431 ost at maturity date should be The amorti

13. Scaffolding Co. is contemplating on investing on 3-year, P1,000,000, 12% bonds to be classified as investment measured at amortized cost. Principal is due at maturity but interest is due semi-annually every July 1 and December 31. The current market rate on January 1, 20x1 is 14%. How much is the estimated purchase price of the bonds on January 1, 20x1? b. 952,334 a. 960,964 c. 949,812 d. 936,431 ost at maturity date should be The amorti

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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BlueLtd. Issued a $1,164,000, 10-year bond dated January 1, 2020. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Blue followed IFRS. Using 1 factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond. Click here to view the tactor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITYOF 1 (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answers to 0 decimal places, e.g. 5,275.) Proceeds from sale of bond : on bond Prepare the journal entries for above transactions. (Round answers to 0 decimal places, e.g. 5,275. Credit account titles are automatically indented when the amount is entered. Do not Indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the…
9. Sean Corp. issued a $40,000, 10-year bond, with a stated rate of 8%, paid semiannually. How much cash will the bond investors receive at the end of the first interest period? a.$1,600 b.$4,000 c.$3,200 d.$800
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40) Scottie Adams Bird Supplies issued 15% bonds, dated January 1, with a face amount of $250,000 on January 1, 2024. The bonds mature in 2033 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest is paid semiannually on June 30 and December 31. What is the price of the bonds on January 1, 20247 Some relevant and irrelevant present value factors: A) $236,141 B) $291,210 C) $263,243 D) $461,881
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