C. COMPUTATION TIME #08-03On January 1, 2015, Mac Inc, issued Php3,000,000 bonds with a coupon rate of B%maturing in 4 years. The interest is paid annually, and the market interest rate at the dateof issue was 11%Required:1. Is the bond issued at discountor at premium?2. Compute for the issue price of the bond by preparing the 4-year amortization schedulefor the bond. Please copy the amortization table below and write down your answer.3,000.000.Principal=1,976,192.92InterestIssue PriceInterest Expense(carrying amountx11%)CaryingBalancePeriodInterest to be PaidPhp3,000,000 x8%Amortization afDiscount(Interest Exp.-Int. Paid)240,000240,000240,000240,0002.34.

The bonds are issued at discount or premium depending on the market rate of bonds payable.

Answered: C. COMPUTATION TIME #08-03 On January…

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, 2017, Ellison Co. issued eight-year bonds with a fase value of S6,000,000 and a stated interest rate of6%, payable semlannually 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% Use the following to answer question 12: .627 .540 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% .623 .534 6.210 5.747 12.561 11.652 honds issued 12. The present value of the interest is A) $2,068,920. B) $2,097,360. C) $2,235,600. D) $2,260,980.
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Take me to the text On January 1, 2023, Bootic Inc. issued $3,182,000 worth of 4% redeemable bonds due in 9 years. At the time of issue, the market interest rate was 3% (interest is due annually). Calculate the discount or premium at which the bonds were issued. The company's year end is December 31. Do not enter dollar signs or commas in the input boxes. Round your answer to the nearest whole number. For bond calculations, use the PV tables at the end of Chapter 7 textbook or use a financial calculator. The bond is issued at a: Premium + Premium/Discount: $ Check
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Kk.95. Palmer Corp. issued callable bonds with a face value of $200,000 and a coupon rate of 6%. The bond matures in 4 years and pays interest semi-annually. The market rate at time of issuance is 7%. Provide the journal entry to record the issuance of the bonds on January 1st, 2020. -Record the journal entry for the interest expense on 6/30/2021? -What is the net book value of the bonds payable at 12/31/2022? -Palmer Corp. decides to exercise the right to retire its bonds early on 12/31/2022. It calls its bond at a call premium of 3 percent over par. Record the retirement of the bonds.
Auerbach Incorporated issued 4% bonds on October 1, 2024. The bonds have a maturity date of September 30, 2034 and a face value of $300 million. The bonds pay interest each March 31 and September 30, beginning March 31, 2025. The effective interest rate established by the market was 6%. How much cash interest does Auerbach pay on March 31, 2025? Multiple Choice O $12.0 million $9.0 million $6.0 million $18.0 million
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A business is planning to issue 10%, 6-year bonds with a par value of $525,000 on January 1 of the current year. The bonds pay semiannual interest on June 30 and December 31. Assuming the market rate for the bonds on the issue date is 8%, compute the total cash proceeds from the bond issue. Note: Use factor(s) from tables provided. Round "Table value" to 4 decimals and final answer to the nearest whole dollar. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Table Values are Based on: Cash Flow Present (maturity) value Interest (annuity) Total cash proceeds n = Table Value Amount Present Value
Compu tech Ltd issued OMR 100,000, 6% 5 years term bonds on 1 January2020, it is due for redemption on 1 January 2025, with interest payable once in six months on 1 July and 1 January. The effective interest Rate (Market Rate)was 4%.The issue price of the Bond is?
- Your answer is partially correct. Nicholas Ram Corporation have a $2,100,000 "bond issue" dated March 1, 2016 due in 15 years with an annual interest rate of 7%. Interest is payable March 1 and September 1. On August 1, 2016, the bond was sold for $2,205,000 plus accrued interest. Using the straight-line method, prepare the general journal entries for each of the following a) The issuance of the bond on August 1, 2016 b) Payment of the semi-annual interest and the amortization of the premium on September 1, 2016. c) Accrual of the interest and the amortization of the premium on December 31, 2016. d) Payment of the semi-annual interest and the amortization of the premium on March 1, 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas. Round answers to 2 decimal places, e.g.…
3 General motors issued 10-year bonds in August of 2017. The bonds make semiannual payments occurring on April 1 and October 1 each year, with the first payment on April 1 2018, and the last on October 1, 2027. The coupon rate is 4.2%. (a) Assuming a principal of 100, what would the cash flow be starting from September 30, 2017? (b) The bond is currently selling for $93.03 (per 100 of face value). If you buy the bond today, what would its cash flow be? Is it the same as part a plus the addition of 6.97 (100 - 93.03)?

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