Provide answer general accounting question Calculate the cash received for accrued interest on the bond issuance date.Specifically, the problem provides these key details:•Par Value of Bonds: $120,000Coupon Rate: 9%⚫ Issued on August 1, which is 5 months after the most recent interest dateThe goal is to calculate the amount of cash received for accrued interest when thebonds are issued, with multiple choice options ranging from $2,700 to $6,300.

Step 1: Define Accrued Interest on Bond IssuanceWhen bonds are issued between interest dates, the…

Answered: Calculate the cash received for accrued…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter11: Bond Pricing And Amortization (bonds)

Section: Chapter Questions

Problem 1R: The University Club recently issued 1,500,000 of 10-year, 9% bonds at an effective interest rate of...

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Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0 and ends at Period 20. The timeline shows a cash flow of $ 20.72 each from Period 1 to Period 19. In Period 20, the cash flow is $ 20.72 plus $ 1,000. Period0121920 Cash Flows$20.72$20.72$20.72$20.72+$1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value?
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0 and ends at Period 50. The timeline shows a cash flow of $ 20.38 each from Period 1 to Period 49. In Period 50, the cash flow is $ 20.38 plus $ 1,000. Period. Cash Flows 0 1 $20.38 2 $20.38 49. $20.38 50. $20.38 + 1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value?
Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a maturity date in 30 years. At the time of issue, the market rate is 5%. а. Calculate the issue price of the bond. b. Record the journal entry for the issue of the bond С. Record the journal entry for the first interest payment d. How much interest is recorded on the income statement in Year 1? е. Record the journal entry for the final entry at the bond maturity date.
On January 1, Nic Inc. issued $100,000 of ten-year, 10% bonds that pay interest semiannually on June 30 and 31st. The bonds are sold to yield 8%. A. Using the information provided in this problem, as well as your time value of money tables to calculate the issue price of the bond. B. Was the bond issued at a premium or a discount, explain your answer.
Fold in the Cheese, Inc. is issuing $850000 of 8% 10-year bonds. These bonds will pay semi-annual interest payments. The market interest rate is currently 6%. Required: Compute what your bonds are worth. Round all calculations to 2 decimals. Record the sale of the bond with a journal entry. Record the journal entry for your first interest payment.
please explain how each section is calculated. And how to come up with the numbers
Please explain proper steps by Step and Do Not Give Solution In Image Format ? And Fast Answering Please ?
Upvote will be given. Write the complete solutions legibly. The encircled letter is the correct answer. Solve it manually.
I need help with the June 30 entry to book the interest payment and amoritization on discount for bond. The entry for January 22 is below: January 22: Issued $75,000 of 6% term bonds due on January 1, 2025 (10 periods) with interest payable each June 30 and December 31. Investors require an effective interest rate of 8%. Record the entries for issuance of the bond. 22-Jan Cash $ 68,916.83 Discount on Bond Payable $ 6,083.17 Bond Payable $ 75,000.00 June 30: Book the interest payment and amortization on discount for bond.
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
Please answer all yellow boxes, and show the formulas (work). Thank you!
please answer within the format by providing formula the detailed workingPlease provide answer in text (Without image)Please provide answer in text (Without image)Please provide answer in text (Without image)

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