Ayayai Company issues $17300000, 9.80%, 20-yearbonds to yield 10% on January1,2025. Interest is paid onJune 30 and December Theproceeds from the bonds are $17003148. Ayayai useseffective interest amortization.What amount of interestexpense will Ayayai record forthe June 30, 2025 payment? $1700314 $847700 $850157 $865000

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Answered: Ayayai Company issues $ 17300000,…

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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Crane Company issues $26400000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 7.0%. Given the following present value factors, what are the proceeds from the bond issue? Present value of a single sum for 5 periods Present value of a single sum for 10 periods Present value of an annuity for 5 periods Present value of an annuity for 10 periods $27487261 $26400000 $27446108 O $27497828 3.5% 0.84197 4.0% 4.51505 0.82193 0.70892 0.67556 4.45182 8.31661 8.11090 7.0% 0.71299 0.50835 4.10020 7.02358 8.0% 0.68058 0.46319 3.99271 6.71008
On January 1, 2021, Lambda, Inc. issued ten-year bonds with a face value of $1,000,000 and an annual stated interest rate of 8%. Interest payments are made semi-annually on June 30th and December 31st. The bonds were issued for $875,378, when the market rate of interest was 10%. What amount of interest expense will Lambda record for 2021? Multiple Choice $43,957 $92,462 $80,000 $87,726
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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On June 30, 2024, LN Bean issued $25 million of its 8% bonds for $23 million. The bonds were priced to yield 10%. Interest is payable semiannually on December 31 and July 1. If the effective interest method is used, how much bond interest expense should the company report for the 6 months ended December 31, 2024? Multiple Choice $1,150.000 $1.207500 $1.293.750
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?
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 interest expense will be recognized in 2024? $833000 $1670756 $1670951 $1666000
Sheffield Corp. issues $6000000 face value of bonds at 96 on January 1, 2019. The bonds are dated January 1, 2019, pay interest semiannually at 8% on June 30 and December 31, and mature in 10 years. Straight-line amortization is used for discounts and premiums. On September 1, 2022, $3600000 of the bonds are called at 102 plus accrued interest. What gain or loss would be recognized on the called bonds on September 1, 2022? OO $216000 loss. $360000 loss. $271500 loss. $163200 loss.
On September 30, 2023, when the market interest rate is 9 percent, Score Ltd. issues $8,000,000 of 11-percent, 20-year bonds for $9,472,126. The bonds pay 30. Score Ltd, amortizes bond premium by the effective-interest method. Required 1. Prepare an amortization table for the first four semi-annual interest periods. Score amortizes a bond premium by the effective-interest method. 2. Record the issuance of the bonds on September 30, 2023, the accrual of interest on December 31, 2023, and the semi-annual interest payment on March 3 Requirement 1. Prepare an amortization table for the first four semi-annual interest periods. (Round your answers to the nearest whole dollar.) B: Interest Expense (4.5% of Preceding Bond Carrying Amount) A: Interest Payment Semi-annual Interest (5.5% of Maturity Period Values) Issue date. March 31, 2024 September 30, 2024 March 31, 2025 September 30, 2025 440,000 440,000 440,000 440,000 426,245 C: Premium Amortization (A-B) 13,755 D: Unamortized Premium…
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.

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