15. On January 1, 20x1, Washing Co. contemplates on acquiringP3.000,000, 10% bonds to be classified as investment measuredat amortized cost. Principal orn the bonds will mature in foursemi-annual installments as follows:July 1, 20x1December 31, 20x11,200,000800,000600,000July 1, 20x2December 31, 20x2400,000Total3,000,000Interest on the outstanding principal balance is also due semi-annually. The effective rate on January 1, 20x1 is 12%. How muchIs the estimated purchase price of the bonds on January 1, 20xl?a. 2,449,112b. 2,494,112c. 2,782,667d. 2,944,112

Bond is a fixed income-based instrument, which contains low amount of risk. Organization issues…

15. On January 1, 20x1, P3.000,000, 10% bonds to be classified as investment measured at amortized cost. Principal on the bonds will mature in four shing Có. côntemplates on acquiring semi-annual installments as follows: July 1, 20x1 December 31, 20x1 1,200,000 800,000 July 1, 20x2 December 31, 20x2 600,000 400,000 3,000,000 Total

15. On January 1, 20x1, P3.000,000, 10% bonds to be classified as investment measured at amortized cost. Principal on the bonds will mature in four shing Có. côntemplates on acquiring semi-annual installments as follows: July 1, 20x1 December 31, 20x1 1,200,000 800,000 July 1, 20x2 December 31, 20x2 600,000 400,000 3,000,000 Total

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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K ..e Baxter Company issued $669,000, 8%, 4-year bonds for 101 with interest paid annually. Assuming straight-line amortization, what is the carrying value of the bonds after two years? OA. $675,690 B. $669,000 O C. $670,673 OD. $672,345
18 A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on June 30 and December 31. The proceeds from the bonds are P4,901,036. Using effective-interest amortization, what will the carrying value of the bonds be on the December 31, 2022 statement of financial position? 4,903,160.00 4903160 4,903,160 4903160
3
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
Presented below is an amortization schedule related to Flint Company's 5-year, $150,000 bond with a 7% interest rate and a 4% yield, purchased on December 31, 2023, for $170,034. Date Cash Received Interest Revenue Bond Premium Carrying Amount Amortization of Bonds 12/31/23 $170,034 12/31/24 $10,500 $6,801 $3,699 166,335 12/31/25 10,500 6,653 3,847 162,488 12/31/26 10,500 6,500 4,000 158,488 12/31/27 10,500 6,340 4,160 154,328 12/31/28 10,500 6,172 4,328 150,000 The following schedule presents a comparison of the amortized cost and fair value of the bonds at year-end. 12/31/24 12/31/25 12/31/26 12/31/27 12/31/28 Amortized cost $166,335 $162,488 $158,488 $154,328 $150,000 Fair value 165,800 164,700 160,400 155,400 150,000 (a) Prepare the journal entry to record the purchase of these bonds on December 31, 2023, assuming the bonds are classified as held-to-maturity securities. (b) Prepare the journal entry related to the held-to-maturity bonds for 2024. (c) Prepare the journal entry…
Do not give answer in image formate
Requirement 1. Determine the present value of 10-year bonds payable with face value of $93,000 and stated interest rate of 12%, paid semiannually. The market rate of interest is 12% at issuance. (Round intermediary calculations and final answer to the nearest whole dollar.) 1. Determine the present value of 10-year bonds payable with face value of $93,000 and stated interest rate of 12%,paid semiannually. The market rate of interest is 12%at issuance. 2. Same bonds payable as in Requirement 1, but the market interest rate is 16%. 3. Same bonds payable as in Requirement 1, but the market interest rate is 8%.
INVESTMENT AT AMORTIZED COST CASE III: On January 1, 2026, ABC purchased 9% bonds with a face amount of P4M to yield 10%. The bonds are dated January 1, 2026, 2024, mature on December 31, 2035 and pay interest annually on December 31. The entity used the interest method. What should be reported as interest revenue for 2026?
Subject: acounting
8.Use the following information to answer item 38 and 39: On Jan 1, 2021, ABC Company purchased 5-year bonds with face value of P8,000,000 and stated interest of 10% per year payable semi-annually Jan 1 and July 1. The bonds were acquired to yield 8%. Present value factors are A.8,652,400 B.8,000,000 C.8,662,400 D.8,642,400
5
14.On July 1, 2020, Chikadora Company issued P4M of 16% bonds to yield 14%. Interest is payable semi-annually on January 1 and July 1. The bonds mature in five years. The company uses the calendar year and the effective interest method of amortization.PV of 1 at 7% for 10 periods is P0.50835PV of 1 at 14% for 5 periods is P0.51937PV of an ordinary annuity of 1 at 7% for 10 periods is 7.02359PV of an ordinary annuity of 1 at 14% for 5 periods is 3.43308What is the issue price of the bond? a.)n P3,719,051 b.) P4,000,000 c.) P4,280,949 d.) P4,274,651

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