Brin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in semiannualpayments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) fromthe tables provided.)1. Compute the price of the bonds as of their issue date.2. Prepare the journal entry to record the bonds' issuance.Complete this question by entering your answers in the tabs below.Required 1Required 2Prepare the journal entry to record the bonds' issuance. (Round intermediate calculations to the nearest dollar amount.)View transaction listJournal entry worksheet1Record the issuance of the bonds for cash.Note: Enter debits before credits.TransactionGeneral JournalDebitCredit1Record entryClear entryView general journal Brin Company issues bonds with a par value of $590,000. The bonds mature in 5 years and pay 9% annual interest in semiannualpayments. The annual market rate for the bonds is 12%. (Table B.1, Table B.2, Table B.3, and Table B.4) (Use appropriate factor(s) fromthe tables provided.)1. Compute the price of the bonds as of their issue date.2. Prepare the journal entry to record the bonds' issuance.Complete this question by entering your answers in the tabs below.Required 1Required 2Compute the price of the bonds as of their issue date. (Round all table values to 4 decimal places, and use the rounded tablevalues in calculations. Round intermediate calculations to the nearest dollar amount.)Table Values are Based on:n =i =Cash FlowTable ValueAmountPresent ValuePar (maturity) valueInterest (annuity)Price of bonds< Required 1Required 2 >

Semiannual interest = Face value of bonds x rate of interest x no. of months/12 = $590,000 x 9% x…

Answered: Brin Company issues bonds with a par…

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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Buchanan Corporation issues $500,000 of 11% bonds that are due in 10 years and pay interest semi-annually. At the time of issue, the market rate for such bonds is 10%. Calculate the bonds' issue price by using the excel Present Value (PV) function/ financial calculator / PV tables. Round to the nearest dollar.
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Enviro Company issues 8%, 10-year bonds with a par value of $340,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 10%, which implies a selling price of 87 1/2. The straight-line method is used to allocate interest expense. 1. What are the issuer's cash proceeds from issuance of these bonds? 2. What total amount of bond interest expense will be recognized over the life of these bonds? 3. What is the amount of bond interest expense recorded on the first interest payment date? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What total amount of bond interest expense will be recognized over the life of these bonds? Note: Round final answers to the nearest whole dollar amount. Total Bond Interest Expense Over Life of Bonds: Amount repaid: 20 payments of Par value at maturity $ 13,600 $ Total repayments Less amount borrowed (cash proceeds from part 1) Total bond interest expense < $ Required…
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Compute bond proceeds, amortizing discount by interest method, and interest expense Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $80,000,000 of five-year, 9% bonds at a market (effective) interest rate of 11%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet Compute the following: a. The amount of cash proceeds from the sale of the bonds. Round your answer to the nearest dollar. $ b. The amount of discount to be amortized for the first semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. $ 73,969,806 X $ c. The amount of discount to be amortized for the second semiannual interest payment period, using the interest method. Round your answer to the nearest dollar. 468,339 X $ 442,581 X d. The amount of the bond…
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Your answer is partially correct. Swifty Ltd. issued a $1,184,000, 10-year bond dated January 1, 2023. The bond was sold to yield 12% effective interest. The bond paid 10% interest on January 1 and July 1 each year. The company's year-end was December 31, and Swifty followed IFRS. Using 1. factor Tables 2. a financial calculator, or 3. Excel function PV, calculate the amount received for the bond, and any discount or premium on the bond.
Marigold Inc. issues $4,100,000 of 7% bonds due in 10 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 10%. Click here to view factor tables. What amount will Marigold receive when it issues the bonds? (For calculation purposes, use 5 decimal places as displayed in the factor table provided and final answer to O decimal places, e.g. 458,581.) Amount received by Marigold when bonds were issued $ 10822
Marigold Hills Ltd. issued five-year bonds with a face value of $160,000 on January 1. The bonds have a coupon interest rate of 7% and interest is paid semi-annually on June 30 and December 31. The market interest rate was 5% when the bonds were issued at a price of 109. Using above information, determine the proceeds received by the company when the bonds were issued. Proceeds from issue of the bonds eTextbook and Media $ Determine the interest expense recorded for the six months ending June 30 when the first interest payment is made. Interest expense $ eTextbook and Media Determine the balance in the Bonds Payable account immediately following the first interest payment. Balance in bonds payable account eTextbook and Media

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