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Q: 1. A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Boyd Co. produces and sells aviation equipment. On the first day of its fiscal year, Boyd Co. issued…
A: Solution: A bond is a financial debt instrument so it requires its issuing company to pay periodic…
Q: Renfro Company issued $300,000 of 8%, 10-year bonds at 102. Interest is paid annually, and the…
A: We have the following information: Renfro Company issued $300,000 of 8%, 10-year bonds at 102%…
Q: On January 1, 2020, Kansas, Inc. issued ₱100,000, 10%, 10-year bonds when the market rate of…
A: A bond is issued by an entity in order to raise funds for the business. The issuer pays fixed…
Q: Sandhill Co, issued $1,080,000, 9-year bonds. It agreed to make annual deposits of $86,000 to a fund…
A: Sinking fund refers to an amount of fund that should be kept aside for the purpose of paying off the…
Q: PANGILINAN Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable…
A: solution : given: face vale =4000000 interest payable = semiannually interest…
Q: ld Corp. uses the amortized cost method (effective interest method) when accounting for debt…
A: Bond is that debt instrument which is used by the organization to finance its long term fund needs,…
Q: rporation sold an issue of 20 year bonds, having a total face value of P10 Million pesos for P9.5…
A: Bond carry the annual interest payments and redemption value on the maturity of bond. There are…
Q: Unleaded Inc. issued a ₱300,000 face value bonds. It carries 10% annual interest rate to be repaid…
A: Formulas: Premium on Bonds Payable = Issue value of the bonds - face value of the bonds Interest…
Q: Cullumber Company issued $1,600,000, 12-year bonds. It agreed to make annual deposits of $82,000 to…
A: A sinking fund is fund in which a particular amount is kept aside that earns compound interest and…
Q: Blossom Company issued $1,340,000, 14-year bonds. It agreed to make annual deposits of $ which will…
A: A sinking fund is an account that is created by an organization, usually the government or a…
Q: Williams Company issued $600,000 of 10%, 5-year bonds. Interest is paid semiannually, and the…
A: Issue price of bonds = (face value of bonds x present value of $ 1 at market interest rate for the…
Q: On January 2, Year 1, Kampai Sushi Bar sold $800,000 of bonds for $785,000. The bonds will mature in…
A: Since the bond is sold for lesser amount and the bond will mature in 10 years, each year the amount…
Q: Sheridan Industries, Inc. issued $17,400,000 of 8% debertures on May 1, 2024 and received cash…
A: The objective of the question is to calculate the total dollar amount of discount or premium…
Q: At the beginning of the current year, QUATRO Company purchased 5-year bonds with a face amount of ₱…
A: Purchase price of the bonds = Present value of principal + Present value of interest payments where,…
Q: Lewis Co. produces and sells aviation equipment. On the first day of its fiscal year, Lewis Co.…
A:
Q: A Corporation sold an issue of 15-year bonds, having a total face value of ₱12,000,000 for…
A: A sinking fund is a means of repayment of funds raised through a bond issue by periodic payment to a…
Q: A total of 50 bonds is issued by a corporation at ₱ 1,000 face value each. The bonds are to be…
A: Since coupon rate is not given,We are assuming, that the bond is zero coupon. This question is based…
Q: City Slicker Corporation pays $55,000 into a bond sinking fund each year for the future redemption…
A: Sinking Fund- It refers to the separate fund which company uses to create to reduce the outstanding…
Q: A corporation floats ₱1,200,000 worth of bonds of ₱500 denomination. The bond rate is 9% and the…
A: Amortization of Bond: If you have a bond that amortizes the principle (face value) and interest…
Q: On January 1, 2021, MACADAMIA Company issued 5 year bonds with face value of ₱5,000,000 at 110. The…
A: Amount received from the bond issuance = (Face value of bonds x issue price/100) - bond issue cost…
Q: A Corporation sold an issue of 15-year bonds, having a total face value of P12,000,000 for…
A: Sinking Fund - A Sinking fund is a type of fund that is created and set up purposely for repaying…
Q: Thompson Distributors sold $50,000 worth of bonds to raise money for a new warehouse.…
A: Introduction: A bond is a fixed payment obligation issued by corporations or government entities to…
Q: A Corporation sold an issue of 20-year bonds, having a total face value of 22M for 9,500,000. The…
A: A bond is a type of debt instrument issued by companies in order to raise funds. The issuer pays…
Q: PANGILINAN Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable…
A: Interest expense on October 1, 2021 = issue value of bonds x effective rate of interest x no. of…
Q: corporation issues $3,000,000 of 8%, 10-year bonds, interest payable semiannually. At the time the…
A: Formula: Present value of Annuity = Present value of Annuity factor x semi annual coupon payment.…
Q: a corporation sold an issue of 15 years bonds having a total face value of 12,000,000 for…
A: Face Value = 12,000,000 Coupon Rate = 15% Interest Rate = 12% Semi-annual coupon rate = Coupon…
Q: A company sold a $1,000,000 issue of bonds with a 15-year life, paying 4% interest per year. The…
A: Bond is a fixed income-based instrument, which contains low amount of risk. Organization issues…
Q: Sepia Inc. issued bonds for $450,000 that were redeemable in 6 years. They established a sinki that…
A: Sinking funds are established to provide and collect money for future liabilities and periodic…
Q: Oriole Company issued $1,000,000, 9-year bonds. It agreed to make annual deposits of $77,500 to a…
A: The problem requires the determination of the future value of an ordinary annuity since payments are…
A corporation sold an issue of 20-year bonds, having a total face value of Php 10,000,000, for Php 9,500,000, The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposits that will earn 12% compounded semiannually. Compute the annual cost for interest and redemption of these bonds.
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- Whirlie Inc. issued $300,000 face value, 10% paid annually, 10-year bonds for $319,251 when the market of interest was 9%. The company uses the effective-interest method of amortization. At the end of the year, the company will record ________. A. a credit to cash for $28,733 B. a debit to interest expense for $31,267 C. a debit to Discount on Bonds Payable for $1,267 D. a debit to Premium on Bonds Payable for $1.267A Corporation sold an issue of 15-year bonds, having a total face value of ₱12,000,000for ₱11,000,000. The bonds bear interest at 15%, payable semiannually. The companywishes to establish a sinking fund for retiring the bond issue and will make semiannualdeposit that will earn 12%, compounded semiannually. Show the cash flow diagram, andcompute the annual cost for interest and redemption of these bondsA Corporation sold an issue of 20-year bonds, having a total face value of 22M for 9,500,000. The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond issue and will make semiannual deposit that will earn 12%, compounded semiannually. Compute the annual cost for interest and redemption of these bonds.
- A corporation sold an issue of 20 year bonds, having a total face value of P10 Million pesos forP9.5 Million pesos. The bonds bear interest at 16%, payable semiannually. The company wishesto establish a sinking fund for retiring the bond issue and will make semiannual deposits thatwill earn12%, compounded semi annually. Compute the annual cost for interest and redemptionof these bonds.A corporation sold an issue of 20-year bonds, having a total face value of P10,000,000 for P9,500,000. The bonds bear interest at 16%, payable semiannually. The company wishes to establish a sinking fund for retiring the bond 1. issue and will make semiannual deposits that will earn 12%, compounded semiannually. Compute the annual cost for interest and redemption of these bonds. 2. A company has issued 10-year bonds, with a face value of P1,000,000 in P1,000 units. Interest at 16% is paid quarterly. If an investor desires to earn 20% nominal interest on P100,0000 worth of these bonds, what would the selling price have to be? 3. A P1,500-bond which will mature in 10 years and with a bond rate of 15% payable annually is to be redeemed ata corporation sold an issue of 15 years bonds having a total face value of 12,000,000 for 11,000,000. the bond bear interest 15% payable semiannually . the company wishes to established a sinking fund for retiring the bond issue and will make semiannual deposit that will earn 12% compunded seminuannually. show the cash flow diagram and compute the annual costfor interest and redemption of these bond.
- 4. Compute the annual cost for interest and redemption of these bondsA corporation floats ₱1,200,000 worth of bonds of ₱500 denomination. The bond rate is 9% and the bonds are to be retired in 10 years, the annual payment being nearly as equal as possible. Prepare an amortization schedule. Solve and show the solution.Unleaded Inc. issued a ₱300,000 face value bonds. It carries 10% annual interest rate to be repaid after 10 years. The corporation issued the bonds at ₱319,251 when the market rate was at 9%. Using the effective interest method of amortization, the journal entry at the end of the year will include a) A credit to Discount on Bonds Payable for ₱1,267. b) A credit to Premium on Bonds Payable for ₱1,267 c) A debit to Discount on Bonds Payable for ₱1,267. d)
- PANGILINAN Company issued 3-year, 12% bonds with face amount of ₱4,000,000. Interest is payable semi-annually on April 1 and October 1. The bonds were issued on April 1, 2021 for ₱4,203,028 which represents an effective interest cost of 10% per year. REQUIREMENTS: A. Prepare an amortization table using the effective interest method.B. Prepare journal entries for 2021.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 $ 803100.94Thompson Distributors sold $50,000 worth of bonds to raise money for a new warehouse. The bonds pay interest annually at 4% for 10 years. The market rate of interest for a similar instrument was 3%; therefore, the bonds sold for a premium at $54,265. a. Record the sale of the bonds. b. Record the first interest payment and the amortization of the bond premium. Round the interest to the nearest dollar. c. Determine the carrying value (book value) of the bonds after the first year. General Journal Date Account Debit Credit a. b.