Carla Vista Company issued $1,700,000, 13-year bonds. It agreed to make annual deposits of $79,500 to a fund (called a sinking fund).which will be used to pay off the principal amount of the bond at the end of 13 years. The deposits are made at the end of each yearinto an account paying 8% annual interest.Click here to view the factor table.What amount will be in the sinking fund at the end of 13 years? (For calculation purposes, use 5 decimal places as displayed in the factortable provided. Round answer to 2 decimal places, e.g. 25.25.)Amount in the sinking fund$

Amount in the Sinking Fund (Future Value of an Ordinary Annuity)Here, we have the annual deposits…

Answered: Carla Vista Company issued $1,700,000,…

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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Oak Branch Inc. issued $900,000 of 5%, 10-year bonds when the market rate was 4%. They received $973,595. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds. Round intermediate and final answers to whole dollar amount. Jan. 1, Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2 Dec. 31, Year 2 June 30, Year 3 Dec. 31, Year 3 Cash Interest Payment ✔ 22,500 22,500 ✓ 22,500 ✔ 22,500 ✔ 22,500 ✓ 22,500 ✓ Interest on Carrying Value 19,472 19,411 V ✓ 19,350 ✔ 19,287 ✔ 19,222 ✔ 19,157 ✔ Amortization of Premium 3,028 3,089 3,150 ✔ ✓ 3,213 3,278 ✓ 3,343 ✔ Carrying Value 973,595 970,567 967,478 ✔ 964,328 ✔ 961,114 X 957,837 ✔ 954,493 X
on january 1 , 2024 , splash city issues $ 340000 of 9 % bonds, due in 20 years, with interest payable semianually on june 30 and december 31 each years assuming the market interest on the issue date is 8 % , the bonds will issue at $ 373 , 648 complete the three first rows of an amortization table
Sepia Inc. issued $350,000 bonds that were redeemable in 7 years. They established a sinking fund that was earning 5.50% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made into the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposits. b. Calculate the sinking fund balance at the end of the 4th payment period. c. Calculate the amount of interest earned during the 5th payment period. d. Calculate the amount by which the sinking fund increased in the 5th payment period.
Blossom Company issued $700,000, 9-year bonds. It agreed to make annual deposits of $75,500 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 9 years. The deposits are made at the end of each year into an account paying 4% annual interest. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount will be in the sinking fund at the end of 9 years? (Round answer to 2 decimal places, e.g. 25.25.) Amount in the sinking fund $ 803100.94
Ardvark plans to raise the capital by issuing $210,000 of 7.5%, six-year bonds on January 2, 2020. The bonds pay interest semiannually on June 30 and December 31. The market rate is 8%. The company receives $208,476 when the bonds are issued.The company also issues a mortgage payable for $450,000 on January 2, 2020. The proceeds from the mortgage will be used to construct the new building. The mortgage requires annual payments of $45,000 plus interest for ten years, payable on December 31. The mortgage interest rate is 8%. 1) Will the bonds issue at face value, a premium, or a discoutn? 2) Record teh following transactions. Include dates and round to the nearest dollar. Omit explainations. 2a) Cash recevied from the bond issue. 2b) Cash received from the mortgage payable. 2c) Semiannual bond interest payments for 2020. Amortize the premium or discount using the straight-line amortization method. 2d) Payment on the mortgage payable for 2020. 2e) Retirement of bond at maturity on…
A Corporation has a 6%, $500,000 bond issue that originally was issued 5 years ago. There are now eight years remaining on the bond issue, and the market interest rate is 10%. Interest is paid semiannually. Calculate the current market value of the bond issue, using present value tables. Please label all work.
Please put all of the necessary data and computations for better understanding. Thanks ?
Sepia Inc. issued bonds for $450,000 that were redeemable in 6 years. They established a sinking fund that was earning 4.87% compounded semi-annually to pay back the principal of the bonds on maturity. Deposits were being made to the fund at the end of every 6 months. a. Calculate the size of the periodic sinking fund deposit. b. Calculate the sinking fund balance at the end of the payment period 8. c. Calculate the interest earned in payment period 9. d. Calculate the amount by which the sinking fund increased in payment period 9.
On January 1, 2014 Victory Falls Company issued $2,100,000 in bonds that mature in 5 years. The bonds have a stated interest rate of 8% and pay interest quarterly each year. When the bonds were sold, the market rate of interest was 6%. These bonds, when issued and sold, contained a call feature, which allowed the company to retire the bonds early, if they elected, for a one-time payment equal to 1% of the book value at the time of retirement. Required: 1- Provide the adjusting journal entries to record interest expense on June 30, 2014, and December 31, 2014 using the straight-line method and using the effective-interest method. 2- What is the book value of the bonds on June 30, 2014 and December 31, 2014 using straight-line method and using effective-interest method?
Oriole Company issued $1,000,000, 9-year bonds. It agreed to make annual deposits of $77,500 to a fund (called a sinking fund), which will be used to pay off the principal amount of the bond at the end of 9 years. The deposits are made at the end of each year into an account paying 9% annual interest. Click here to view the factor table. What amount will be in the sinking fund at the end of 9 years? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, eg. 25.25) Amount in the sinking fund $

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