B. On January 1, 2016, Gibson Co. issued eight-year bonds with a face value of $20 0,000,000 and a stated interest rate of 6%. payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6%. Present value of 1 for 8 periods at 8%. Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% Present value of annuity for 8 periods at 6%. Present value of annuity for 8 periods at 8%. Present value of annuity for 16 periods at 3%. Present value of annuity for 16 periods at 4%. 627 540 623 534 6.210 5.747 12.561 11.652 The issue price of the bonds is b. Prepare the journal entries for the interest payments on June 30, 2016 and December 31, 2016. a.

B. On January 1, 2016, Gibson Co. issued eight-year bonds with a face value of $20 0,000,000 and a stated interest rate of 6%. payable semiannually on June 30 and December 31. The bonds were sold to yield 8%. Table values are: Present value of 1 for 8 periods at 6%. Present value of 1 for 8 periods at 8%. Present value of 1 for 16 periods at 3% Present value of 1 for 16 periods at 4% Present value of annuity for 8 periods at 6%. Present value of annuity for 8 periods at 8%. Present value of annuity for 16 periods at 3%. Present value of annuity for 16 periods at 4%. 627 540 623 534 6.210 5.747 12.561 11.652 The issue price of the bonds is b. Prepare the journal entries for the interest payments on June 30, 2016 and December 31, 2016. a.

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.
1)
On January 1, 2024, Cullumber Co. issued eight-year bonds with a face value of $5920000 and a stated interest rate of 4%, payable semiannually on June 30 and December 31. The bonds were sold to yield 6%. Table values are: Present value of 1 for 8 periods at 4% Present value of 1 for 8 periods at 6% Present value of 1 for 16 periods at 2% Present value of 1 for 16 periods at 3% Present value of annuity for 8 periods at 4% Present value of annuity for 8 periods at 6% Present value of annuity for 16 periods at 2% Present value of annuity for 16 periods at 3% The present value of the principal is O $4312424. O $4325685. O $3714267. O $3689166. 0.73069 0.62741 0.72845 0.62317 6.73274 6.20979 13.57771 12.56110
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