4. The following information pertains to BARU NUTS Company's issuance of bonds onJuly 1, 2021:P1,000,000 Interest payments10 years Effective yieldFace amountJuly 1 and January 1Term12%Stated interest rate8%4%6%8%12%PV of an ordinary annuity of 1 for 10 periodsPV of an ordinary annuity of 1 for 20 periodsPV of a single amount for 10 periodsPV of a single amount for 20 periods8.117.366.716.1413.5911.479.828.510.680.560.460.320.460.310.210.31What should be the issue price of the bonds?

Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Answered: 4. The following information pertains…

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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On January 1, 2024, Wildhorse Co. issued eight-year bonds with a face value of $6010000 and a stated interest rate of 10%, payable semiannually on June 30 and December 31. The bonds were sold to yield 12%. Table values are: Present value of 1 for 8 periods at 10% 0.46651 Present value of 1 for 8 periods at 12% 0.40388 Present value of 1 for 16 periods at 5% 0.45811 Present value of 1 for 16 periods at 6% 0.39365 Present value of annuity for 8 periods at 10% Present value of annuity for 8 periods at 12% Present value of annuity for 16 periods at 5% Present value of annuity for 16 periods at 6% 5.33493 4.96764 10.83777 10.10590 The present value of the principal is O $2365837. O $2427319. O $2753241. O $2803725.
26. Bonds Issued at a Premium (Effective Interest) Charger Battery issued $100,000 of 11%, seven-year bonds on December 31, 2022, for $104,868. Interest is paid annually on December 31. The market rate of interest is 10%. Required: Prepare the amortization table using the effective interest rate method. For those boxes in which no entry is required, leave the box blank. If the amount is zero, enter "0". If required, round your answers to the nearest whole dollar.
Solar Energy Inc. issued a $910,000, 10.0%, five-year bond on October 1, 2023. Interest is paid annually each October 1. Solar’s year-end is December 31. Period Ending CashInterestPaid PeriodInterestExpense DiscountAmort. UnamortizedDiscount CarryingValue Oct. 1/23 $ 33,633 $ 876,367 Oct. 1/24 $ 91,000 $ 96,400 $ 5,400 28,232 881,768 Oct. 1/25 91,000 96,994 5,994 22,238 887,762 Oct. 1/26 91,000 97,654 6,654 15,584 894,416 Oct. 1/27 91,000 98,386 7,386 8,198 901,802 Oct. 1/28 91,000 99,198 8,198 0 910,000 $ 455,000 $ 488,633 $ 33,633 Assume that interest has already been paid on October 1, 2026.Required:Using the amortization schedule provided above, record the entry to retire the bonds on…
Subject: acounting
QUESTION INFORMATION: Prior to 2022, a company issued bonds with a face value of $200,000, a stated rate of 10%, and a market rate of 12%. Interest is paid on December 31 of each year. As of December 31, 2022, the bonds had a carrying amount of $180,000. One year later, following the December 31, 2023 annual interest payment, the company called the bonds for 101% of face value. QUESTION TO ANSWER: The loss that the company records on the early extinguishment of the bonds is $_
A company issued 7% 9-year bonds with a face amount of $70,000 for $65,567 On January 1 2024. The market intrest rate for bonds of similar risk and maturity is 8% intrest is paid semianually on june 30 and december 31 Required: Record the bond issue and first intrest payment on june 30 2024
On January 1, 2022, Nuptam Corp. issued $1,300,000 par value, 8%, 3-year bonds when the market rate of interest was 10%. Interest is payable annually each December 31. Nuptam incurred bond issue costs of $22,000. What is the journal entry when Nuptam issued the bonds? Prepare the amortization table for the bonds. Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due table Present Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due table What is the journal entry when Nuptam issued the bonds? (Record debits first, then credits. Exclude explanations from any journal entries.) January 1, 2022 Account Cash Discount on Bonds Payable Bonds Payable

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