Colwood Candies issued $370,000 of 12%, five-year bonds on January 1, 2020, when the market interest rate was 16%. The company pays interest annually at year-end. The issue price of the bonds was $321,540. Requirement Create a spreadsheet model to prepare a schedule to amortize the bonds. Use the effective-interest method of amortization. Round to the nearest dollar Requirement. Create a spreadsheet model to prepare a schedule to amortize the bonds. Use the effective-interest method of amortization (Round your final answer to the nearest dollar. For amounts w zero balance, enter a 0 where appropriate.) A B C Interest Payment Interest Expense (16% of (12% of Maturity Value) Preceding Bond Carrying Amount) Date 1-1-2020 12-31-2020 S 12-31-2021 12-31-2022 12-31-2023 12-31-2024 44,400 44,400 44,400 44,400 44,400 51446 52574 53882 55399 56838 D Discount Amortization Discount Balance (C-B) (Preceding E-D) 48460 41414 33240 22758 11759 E 7046 8174 9482 10999 12438 F Bond Carrying Amount ($370,000-E) 321540 328586 336760 346242 355243 367682

Colwood Candies issued $370,000 of 12%, five-year bonds on January 1, 2020, when the market interest rate was 16%. The company pays interest annually at year-end. The issue price of the bonds was $321,540. Requirement Create a spreadsheet model to prepare a schedule to amortize the bonds. Use the effective-interest method of amortization. Round to the nearest dollar Requirement. Create a spreadsheet model to prepare a schedule to amortize the bonds. Use the effective-interest method of amortization (Round your final answer to the nearest dollar. For amounts w zero balance, enter a 0 where appropriate.) A B C Interest Payment Interest Expense (16% of (12% of Maturity Value) Preceding Bond Carrying Amount) Date 1-1-2020 12-31-2020 S 12-31-2021 12-31-2022 12-31-2023 12-31-2024 44,400 44,400 44,400 44,400 44,400 51446 52574 53882 55399 56838 D Discount Amortization Discount Balance (C-B) (Preceding E-D) 48460 41414 33240 22758 11759 E 7046 8174 9482 10999 12438 F Bond Carrying Amount ($370,000-E) 321540 328586 336760 346242 355243 367682

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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Rangel Corporation issued $520,000 of 5%, 15-year bonds payable on March 31, 2022. The market interest rate at the date of issuance was 8%, and the bonds pay interest semiannually. Rangel Corporation's year-end is March 31. Read the requirements. 1. Using the PV function in Excel, calculate the issue price of the bonds. (Round your answer to the nearest whole dollar.) The issue price of the bonds is
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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. $ 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. $ d. The amount of the bond interest expense for the first…
On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $200 million. The bonds mature on September 30, 2044 (20 years). The market rate of interest for similar bonds was 10%. Interest is paid semiannually on March 31 and September 30. Required: Determine the price of the bonds on September 30, 2024. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount, not in millions. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Time values are based on: n= i= Cash Flow Interest Principal Price of bonds S S Amount 40 5% 8,000,000 200,000,000 Present Value
On January 1, 2024, Anne Teak Furniture issued $100,000 of 12% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 4 years. The annual market rate for bonds of similar risk and maturity is 14%. What was the issue price of the bonds? Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Multiple Choice $89,460 $120,942 $95,460 $94,029
5 0 V File C13 123456 7 89 Home 18 19 20 Insert Arial X ✓ fx Face amount of bonds Contract rate of interest Draw Term of bonds, years Market rate of interest Interest payment Page Layout く 10 Formulas DATA B ✓ ✓ V Data A B C Compute bond proceeds, amortizing discount by interest method, and interest expense Av $80,000,000 9% 5 11% Semiannual Review Amount ... View Ev ab ≡く D Using formulas and cell references, perform the required analysis, and input your answers into the Amount column. Transfer the numeric results for the green entry cells (C13:C16) into the appropriate fields in CNOWv2 10 for gradina. 11 12 13 a. PV of cash proceeds 14 b. Discount amortized for the 1st interest payment period 15 c. Discount amortized for the 2nd interest payment period 16 d. Interest expense for the 1st year 17 Help Formulas Editing ✓ Currency E $ 500 ✓ C →>>
please use P*R*T fomular as well. Thanks
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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Some of the questions are in the screenshots to make it easier! The following section is taken from Ohlman Corp.’s balance sheet at December 31, 2018. Current liabilities Interest payable $ 112,000 Long-term liabilities Bonds payable, 7%, due January 1, 2021 1,600,000 Bond interest is payable annually on January 1. The bonds are callable on any interest date.(a)Journalize the payment of the bond interest on January 1, 2019. (Credit account titles are automatically indented when amount is entered. Do not indent manually.
The balance sheet for Ivanhoe Consulting reports the following information on July 1, 2022. Long-term liabilities Bonds payable $4,500,000 Less: Discount on bonds payable 315,000 $4,185,000 Ivanhoe decides to redeem these bonds at 101 after paying annual interest.Prepare the journal entry to record the redemption on July 1, 2022.
Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd issued $83,000,000 of five-year, 8% bonds at a market (effective) interest rate of 10%, with interest payable semiannually. This information has been collected in the Microsoft Excel Online file. 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.