Downing Company issues $5,000,000, 6%, 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 5%. What are the proceeds from the bond issue? ​ 2.5% 3.0% 5.0% 6.0% Present value of a single sum for 5 periods .88385 .86261 .78353 .74726 Present value of a single sum for 10 periods .78120 .74409 .61391 .55839 Present value of an annuity for 5 periods 4.64583 4.57971 4.32948 4.21236 Present value of an annuity for 10 periods 8.75206 8.53020 7.72

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A: Bond is an instrument which is issued at par, discount or at premium.  When company required the…

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A: The bonds are the debt instrument. These debt instruments are generally issued by the corporation or…

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A: Under the Straight-Line Amortization Method, the premium or discount on bond is amortized equally…

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A: Journal Entries are primary record maintained by an entity for the occurrence or non-occurrence of…

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A: Bonds payable is the liability recorded when the company generates cash by issuing the bonds.…

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A: The discount on bonds arises when the market offers higher interest earnings than the bonds. The…

Q: On December 31, 2020, Plank Corporation issued $800,000, 6%, 5-year bonds for $735,100. The bonds…

A: PREPARATION OF BOND DISCOUNT SCHEDULE

Q: On January 1, 2018, Wawatosa Inc. issued 7-year bonds with a face value of $100,000 and a stated…

A: Issue price of the bonds = Present value of principal + Present value of interest payments where,…

Q: Ivanhoe Company issues $24300000, 8.0%, 5-year bonds dated January 1, 2024 on January 1, 2024. The…

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

Q: ed ten-year bonds with a face value of $5,000,000 and a stated interest rate of 6%, payable…

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: Calculate the capitalization interest rate.

A: Capitalization rate is measured by the company which is the flat over applicable on all debts of…

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

A:

Q: Metlock, Inc. issued $282,000, 7%, 15-year bonds on December 31, 2021, for $253,800. Interest is…

A: Total discount on bonds = Face value of bonds - issue value of bonds = 282000-253800 = $28,200

Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…

A: When the issue price of the bond is higher than its face value, the bonds are said to be issued at a…

Q: 6. Farhan Corporation issued $ 1,000,000 of 8%, 28-year bond on January 1, 2020, at 119.792 to yield…

A: The bonds are issued at premium and further semi-annual interest is paid. The journal entries are to…

Q: On Dec. 31, 2020, ABC Corp issued 4-year, 7% bonds with $2,000,000 as par value. ABC Corp. received…

A: Lets understand the basics. When bond is issued at more than its par value then it is known as…

Q: On January 1, 2021, Green company issued P1,000,000, 12% bonds for P1,065,000, a price that yields…

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

Q: On January 1, 2018, Technicians Credit Union (TCU) issued 5%, 20-year bonds payable with face value…

A: Premium on Bonds Payable = Face value of Bonds - Issue price = $100000 - $100000*106% = $6000

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

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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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Q: Legacy issues $740,000 of 7.5%, four-year bonds dated January 1, 2021, that pay interest…

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A: Bonds: Bond is a debt security.The amount of interest is paid on bond.  Bond amortization:…

Q: On July 1 2021, espresso industries issued $700000 of 12 % bonds, dated July 1. Interest is payable…

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Q: Hillside issues $1,900,000 of 5%, 15-year bonds dated January 1, 2019, that pay interest…

A: Face value of bond = $ 1,900,000                             Issue price of bond = $ 1,641,812…

Q: Sunland Corporation issues 5600, 10-year, 10%, $1000 bonds dated January 1, 2027, at 101. The…

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

Q: On January

A: Bonds are priced by discounting future cash flows. Future cash flows include coupons and par value…

Q: What is the entry to record the first semiannual interest payment, and the amortization of the bond…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: b) What is the bonds’ face value? c) What will the bonds’ carrying amount be at the maturity date?…

A: Bond Amortization table is a year-wise summary of bond's carrying amount, interest expenses and…

Q: On January 1, 2020, Marigold Corp. issued $5100000, 10-year, 4% bonds at 102. Interest is payable…

A: When a bond is issued at premium, the amount received excess of fair value should be recorded under…

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

Q: On June 1, 2023, Numbers Company issued a 3-year, P5,000,000 face value bonds with a stated rate of…

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Q: On January 1, 2020, Sheffield Corp. issued $4500000, 10-year, 4% bonds at 102. Interest is payable…

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Q: cel to calculate the issue price of the bonds.

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Q: Kingbird corporation  issued $460,000 ,8% 20 year bonds on January  1 2022 for $418,008. This  price…

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Q: On January 1, Year 1, Wayne Company issued bonds with a face value of $600,000, a 6% stated rate of…

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the…

Q: On July 1, 2020, Kwek-kwek Company issued 600 of its 10%, P1,000 bonds at 99 plus accrued interest.…

A: The bonds are issued at premium or discount depending on the market rate of interest of bonds.

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A: Interest expense is the amount of charge which is paid by the person who uses the funds. In this…

Q: On June 30, 2021, Allen Corporation issued $4 million of its 8% bonds for $3.5 million. The bonds…

A: The bonds are issued at a discount when the interest offered by the market is greater than the…