A company issues $17000000, 9.8%, 20-year bonds to yield 10% on January 1, 2024. Interest is paid on June 30 and December 31.The proceeds from the bonds are $16708295.53. If the effective-interest method of amortization is used, what amount of interestexpense will be recognized in 2024?$833000$1670756$1670951$1666000

A bond's premium or discount gets amortized over its life and it moves closer to maturity. The…

Answered: A company issues $17000000, 9.8%,…

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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On January 1, 2023, Anthony Corporation issued $500,000 of 6%, 5 - year bonds at 99, with interest paid annually. Using the straightline amortization method, what is the carrying value of the bonds one year later on January 1, 2024? (Round any intermediary calculations to two decimal places and your final answer to the nearest dollar.) A.$ $496,000 B. $501,000 C. $504,051 D.$ 495,000
Kingbird corporation issued $460,000 ,8% 20 year bonds on January 1 2022 for $418,008. This price resulted in effective interest rate of 9 % on the bonds. Interest is payable annually on January 1 Kingbird uses the effective interest method to amortize bond premium or discount prepare the journal entry to record the accrual interest and the discount amortization on december 31,2022
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Starfish Corp. issued $200,000 bonds due in 5 years on January 1, 2020 for $210,000. On January 1, 2022, when the carrying value of the bond was $205,000, Starfish redeemed the bonds at 102. What amount of gain or loss should Starfish record related to the redemption? Loss 6000 Gain 1000 Gain 6000 O Loss 1000
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a company issues 25,000,000, 7.8%, 20 year bonds to yield 8% on January 1, 2020. Interest is paid on June 30 and December 31. The proceeds from the bonds are 24,505,180. Using straight line amortization, what is the carrying value of the bonds on December 31, 2022
On January 1, 2018, Paradiso Company issued 1,000 of its 8%, $1,000 bonds at 93. Interest is payable semiannually on June 30 and December 31. The bonds will mature on December 31, 2027. If the company uses straight-line amortization, determine the amount of interest expense for 2018. answer is 87,000 how do you get there?
Question-based on, "find the amount". I have tried it but confused.
Dahlia Company purchased a P2,000,000 12% face value bonds, 10 years, on April 1, 2019 for P1,964,600. The bonds are dated April 1, 2019 with interest payable April 1 and October 1. Bond discount is amortized following the effective interest method. The effective interest rate is 12.40%. What is the total amortization for the year 2019? (Answer should be in two decimal places, no comma or peso sign) *
Roarie LLC issued 10,000, $1,000 bonds on January 1, 2020. The bonds have a 10-year term and pay interest semiannually. This is a partial bond amortization schedule for the bonds: Cash Payment Interest A. $4,261,329 B. $7,738,658 C. $4,000,000 D. $3,738,658 Effective Decrease in Interest Balance Disct Cash 1 200,000 313,067 113,067 2 200,000 318,720 118,720 3 200,000 324,657 124,657 4 200,000 330,889 130,889 What would be the total interest cost of the bonds over their full term? Outstanding Balance 10,000,000 (6,261,343) 3,738,658 4,000,000 7,738,658 6,261,343 6,374,410 6,493,130 6,617,787 6,748,676
Current Attempt in Progress On July 1, 2023, Ivanhoe Inc. issued $330000, 9% bonds, which mature on July 1, 2030. The bonds were issued for $313934 to yield 10%. Ivanhoe uses the effective interest method of amortizing bond discount. Interest is payable annually on June 30. At June 30, 2025, the adjusted balance in the Bonds Payable account should be O $315627. O $330000. $330427. $317490.
how to calculate this? thank you

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