Crane Company issues $5040000, 7%, 5-year bonds dated January 1, 2020 on January 1, 2020. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 6%. What are the proceeds from the bond issue? ff 3.0% 3.5% 6% 7% Present value of a single sum for 5 periods 0.86261 0.84197 0.74726 0.71299 Present value of a single sum for 10 periods 0.74409 0.70892 0.55839 0.50835 Present value of an annuity for 5 periods 4.57971 4.51505 4.21236 4.10020 Present value of an annuity for 10 periods 8.53020 8.31661 7.36009 7.02358     $5253441 $5252626 $5254941 $5040000

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A: Carrying value of bonds = Beginning carrying value + Increase in carrying value

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A: Correct option is (c) 12%

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A: Market rate is the on going interest rate of the bond in a free market.

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A: Each transactions needs to be recorded in the books of accounts. Journal entries are basic…

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A: Date (A) Interest payment (B) 2.9% * face value  interest expenses (C) 3% *previous book value…

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A: Carrying value of the bonds payable is the value of the bonds on the books inculing the face value…

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A: Cost which is incurred for funds borrowed by entity is referred to as interest expense. To put it…

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A: The question is based on the concept of Financial Management.

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A: Since the interest is paid semi-annually, therefore the total payments, in this case, the number of…

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A: The bonds are the long-term liabilities that are issued to raise the money from the market orThe…

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A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

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A: Bonds: A bond is a fixed-income security that symbolises a lender's loan to a borrower (typically…

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A: Working notes :-…

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A: One of the source used by the business organizations to meet their financial requirements is issue…

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A: Time Value of Money :— According to this concept, value of money in present day is greater than the…

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

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A: It is a fixed income instrument that represents a loan made by an investor to a borrower (corporate…

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A: Bonds are instrument issued by company acknowledging the debt raised by company . It is a liability…

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A: Introduction: The current rate of return on deposit accounts is known as the market rate of…

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A: Bonds payable refers to a type of long-term debt that a company or organization issues to borrow…

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A: Issue price of the bond means the true/intrinsic value of the bond. In other words, it means the…

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A: The bonds are the financial instruments that are issued to raise money from the market or investors.…

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A:

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A: Introduction: Journal: Recording of a business transactions in a chronological order. First step in…

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A:

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A: Answer with all calculation are as follows

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