Computation of Effective Interest Rate On June 30, 2019, Gaston Corporation sold $890,000 of 9% face value bonds for $843,810.43. On December 31, 2019, Gaston sold $480,000 of this same bond issue for $505,351.46. The bonds were dated January 1, 2019, pay interest semiannually on

Q: On January 2, 2016, Banno Corp. issued P1,500,000 of 10% bonds to yield 11% due December 31, 2025.…

A: The answer is stated below:

Q: On January 1, 2019, Culver and Lois Company purchased 12% bonds having a maturity value of $252,000…

A: In FV OCI Investments, the investments are revalued at their fair value at the end of the period.…

Q: On January 1, 2020, Bridgeport Company purchased 12% bonds

A: There are two methods of amortizing the premium or discount of bonds that are issued at a price…

Q: On June 1, 2023, JetCom Inventors Inc. Issued December 1, 2023. Required: a Calculate the issue…

A: The Effective Interest Method is a common approach used to amortize the discount or premium on a…

Q: Current Attempt in Progress On January 1, 2025, Flounder Company purchased 8% bonds having a…

A: The bond purchase is recorded as an asset in the books. The bonds can be purchased at a premium or…

Q: A company issues P5,000,000, 7.8%, 20-year bonds to yield 8% on January 1, 2022. Interest is paid on…

A: Formula: Semiannual interest payment = Face value of bonds x rate of interest x no. of months / 12…

Q: When Patey Pontoons issued 10% bonds on January 1, 2024, with a face amount of $560,000, the market…

A: Net present value:Calculation used to evaluate the investment and financing decisions that involve…

Q: Compute the issue price of the bonds of Pluto corp issues P560,000 of 9% bonds, due in 9 years, with…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: On January 1, 2019, stated rate on the bonds is 7% and interest is payable annually each December…

A: Carrying value at end of year = Carrying value at beginning of year + discount amortization discount…

Q: Joseph Moore Company sells 10% bonds having a maturity value of $2,025,000 for $1,879,014.00. The…

A: The bonds can be issued at a discount when the coupon rate offered by the bond is lower than the…

Q: On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $340…

A: Interest is paid if the coupon payment bond is purchased. The interest or the coupon rate will be…

Q: On January 1, 2024, Mania Enterprises issued 12% bonds dated January 1, 2024, with a face amount of…

A: Issue price of bonds would be present value of interest annuity & maturity amount at market rate…

Q: A. On January 1, 2021, Bradley Company issued $100,000, 9%, 4-year bonds. Interest is paid…

A:

Q: company issues $25,000,000, 7.8%, 20-year bonds to yield (market) 8% on January 1, 2020. Interest is…

A: Here the bonds having coupon rate 7.8% are issued to yield at 8%  Thus represents that bonds are…

Q: On June 30, 2019, Gaston Corporation sold $690,000 of 9% face value bonds for $654,190.11. On…

A: YTM can be calculated using the function Rate in the MS-excel.

Q: On January 1, 2021, Bishop Company issued 10% bonds dated January 1, 2021, with a face amount of $20…

A: Coupon rate = 10%Face amount = $20,000,000Yield = 12%Maturity = 20 yearsTo find: The amounts…

Q: Kendrick Corporation issued $660,000 of 7%, 10-year bonds payable on March 31, 2019. The market…

A: Issue price of the bond:Par value of the bond = $660,000Market interest rate   = 9% per annum (or)…

Q: On January 1, 2024, Rare Bird Limited purchased 15% bonds dated January 1, 2024, with a face amount…

A: The bonds a debt securities issued by corporations and government entities to raise funds. Bonds are…

Q: Claremont Inc. issued a $400,000 bond on January 1, 2020. The bond had a five-year life and an 8%…

A: A bond is an instrument of an indebtedness to the holders of bond issuer in finance. The most…

Q: Determining the Proceeds from Bond Issues Madison Corporation is authorized to issue $760,000 of…

A: The bonds are issued at premium if market interest is lower than the stated interest of bonds and…

Q: Bonds Issued at a Premium (Effective Interest) Cookie Dough Corporation issued $1,500,000 in 7%,…

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: Nash's Trading Post, LLC issued $4,800,000 of 8% bonds on October 1, 2020, due on October 1, 2025.…

A: The bonds are issued at discount when market rate is higher than the coupon rate of bonds payable.

Q: Assuming the market interest rate on the issue date is 7%, the bonds will issue at $410,000. Record…

A: Date Particulars Debit Credit Jan 1, 2021 Cash Account                           Dr. $410000…

Q: On June 30, 2019, Gaston Corporation sold $890,000 of 11% face value bonds for $846,780.44. On…

A: Bonds refer to instruments issued by companies that are intended to raise debt capital from…

Q: Present Value for the question listed below, while the issue price is correct, I need help…

A: Bond is borrowing security that is issued by the company to raise funds from the market by making an…

Q: Problem #3: Assume that on January 1, 2019, Sand World issues $200,000 of 9% bonds, due in 10 years…

A: A bond is an instrument that represents a loan taken by a borrower from an investor. Issuer of bonds…

Q: On June 30, 2024, Gunderson Electronics issued 8% stated rate bonds with a face amount of $300…

A: A bond is a fixed income security which offers the investor a fixed set of periodic coupon payments…

Q: On December 31, 2020, Whitfield Corp. issued $ 400,000 of 10% bonds, due on December 31, 2025.…

A: Interest expense = Previous period's Carrying amount of bonds * 8% * 6/12   Premium Amortization…

Q: Prepare all the journal entries for 2019, 2020, and 2021 assuming the market value of the bond is…

A: Fair Value through Profit or Loss (FVPL): Financial assets are measured at fair value, with changes…

Q: Computation of Effective Interest Rate On June 30, 2019, Gaston Corporation sold $860,000 of 11%…

A: It has been provided: Required:  Effective yield rate for both the issuance dates ?

Q: Question 2 On April 1, 2019, Ellison Co. issued 4-year, 8%, €100,000 face value bonds. The bonds…

A: (a) Bond Amortization Schedule: (Amount in Euros) Date…

Q: A corporation issues $26,000,000 of 9% bonds to yield interest at the rate of 7% on January 1, 2020.…

A: Since you have asked to answer 1 question, we are solving 1st one for you. In case you want other…

Q: On September 30, 2024, the Techno Corporation issued 8% stated rate bonds with a face amount of $160…

A: Bonds payable is a type of instrument where by an amount is borrowed for a fixed period with fixed…

Q: Computation of Effective Interest Rate On June 30, 2019, Gaston Corporation sold $710,000 of 9% face…

A: Effective yield rate refers to the interest that is being paid on the borrowed amount after…

Q: On June 30, 2021 the market interest rate is 10% winner corporation issues $850,000 of 11% 30 year…

A: The objective of the question is to calculate the issue price of the bond issued by Winner…

Q: a company issues 25,000,000, 7.8%, 20 year bonds to yield 8% on January 1, 2020. Interest is paid on…

A: Bonds are the securities issued by the entity for the purpose of raising funds from the market. It…

Q: Agee Technology, Incorporated, issued 9% bonds, dated January 1, with a face amount of $460 million…

A: The cash flow statement refers to the statement showing the movement of cash in and out through the…

Q: Recording Bond Entries and Preparing an Amortization Schedule-Debt Issuance Costs

A: BOND Bonds are debt instruments and represent loans made to the issuer. Governments (at all levels)…

Q: Current Attempt in Progress On July 1, 2023, Ivanhoe Inc. issued $330000, 9% bonds, which mature on…

A: Cash Payment of Interest = Face Value * Stated rate of InterestInterest Expense = Carrying Value *…

Q: On January 1, 2023, Pearl Corporation purchased a newly issued $1,200,000 bond. The bond matured on…

A: Present Value can be calculated using PV function in excelPV (rate, nper, pmt, [Fv], [type])Rate The…

Q: On January 1, 2019, $40 million face amount of 5%, 20-year bonds were issued. The bonds pay interest…

A: Bond is issued by the companies in order to raise fund. The bondholders receive a fixed amount of…