e company issues 7.4%, 5-year bonds with a total face amount of $100,000. The market interest rate for bonds c milar risk and maturity is 7.6%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU ULLY COMPLETE THE PROBLEM SET (input your answers after you've completed the entire problem). will (rounded to nearest dollar). What is the issue price of the bond? (rounded to nearest dollar). When the company records the first interest payment, how much company record for interest the
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- Use the following to answer questions 4-7 (Round answers to the nearest dollar) The company issues 8%, 5-year bonds with a total face amount of $100,000. The market interest rate for bo:ds cf similar risk and maturity is 7.8%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you've completed the entire problem). 4. $ (rounded to nearest dollar). What is the issue price of the bond?= 1/Y= FV= PMT= 5. $ (rounded to nearest dollar). When the company records the first interest payment, how much will the company record for interest expense? 6. $ payment? (rounded to nearest dollar). What is the bond liability (carrying amount) after the first interest 7. $ (rounded to nearest dollar). When the company records the second interest payment, how much will the company record for interest expense? FE Use the following to answer questions 8-10 (Round answers to the nearest dollar) The company issues 10%, 10-year bonds with…Use the following to answer questions 4 – 7 (Round answers to the nearest dollar) TR issues 6.0%, 10-year bonds with a total face amount of $1,500,000. The market interest rate for bonds of similar risk and maturity is 5.9%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET (input your answers after you've completed the entire problem). $ the issue price of the bond? 4. (rounded to nearest dollar). What is 5. $ (rounded to nearest dollar). When the company records the first interest payment, how much record will the company for interest expense? 6. $ (rounded to nearest dollar). What is the bond liability (carrying amount) after the first interest payment? $ company records the second interest payment, how much 7. (rounded to nearest dollar). When the will the company record for interest expense?Use the following to answer questions 8-10 (Round answers to the nearest dollar) The company issues 9%, 10-year bonds with a total face amount of $100,000. The market interest rate for bonds of similar risk and maturity is 9%. Interest is paid semiannually. What is the issue price of the bond? When the company records the 2nd interest payment, how much will the company record for 8. $ 9. $ interest expense? 10. $ . What is the bond liability (carrying amount) after the 2nd interest payment?
- Hey, can I please be helped with the following task and please show calculations on how you got the answers On April 1, 2018 client federline corp. Issued 20-year, 6% bonds with a face value of $8,000,000 at 96 as the market rate at the time was 7%. Interest is to be paid semi-annually. -make the journal entries for: April 1, 2018(the bond issue date) september 30, 2018(first interest payment date assume the straight line Amortization method has been used) September 30, 2018( assume the effective interest method has been used) dec 31, 2018 (the adjusting entry assuming the straight-line method has been used) dec 31, 2018 (the closing entry assuming straight line has been used) Assume the details expect that the bond was issued at 105 to yield an effective interest rate of 5%. Cowell company issued a $6000,000, 10%, 20-year bond at 94 on january 1, 2005. On January 1, 2018 Cowell recalled the entire bond issue at 103. -Make the journal entry for jan 1, 2018 assuming the straight-line…The company issues 10.0%, 10-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 9.8%. Interest is paid semi-annually. DO NOT ROUND YOUR ANSWERS UNTIL YOU FULLY COMPLETE THE PROBLEM SET. 1. $ 2. $ 3. $ How much will be paid in interest each interest payment? (rounded to nearest dollar). What is the present value of the interest payments? (rounded to nearest dollar). What is the issue price of the bond?tELLiy, you must enter your ID number on the first sheet! On January 1, 2020 Omsk Corporation issued Bonds pay interest each July 1 and January 1. 150,000 of 5 % bonds, due in 17 years 12 % market rate of interest. Assume Requirements (Round to 0 decimals, Rounding errors do not matter): 1. Compute market price of bonds. Provide detailed computation. Use functions in Excel 2. What is an amount of discount /premium? Indicate, what it is (discount or premium). Computation. 3. Prepare amortization schedule for first 5 years. Use formulas in Excel. 4. Prepare journal entry to record bond issue. 5. Prepare journal entry on July 1, 2020. 6. Prepare journal entry on December 31, 2020. 7. Prepare journal entry on January 1, 2021
- Part 2: Solve the following problems in the space provided or an attached extra page. You may use a calculator or computer, but no cell phones. On May 1, 20xl Ben Corp. issue $110,000 of 8-year term bonds which were dated May 1, 20xl. The bonds pay interest semi-annually. The stated interest rate was 7% annually, and the bonds were issued to yield 6% annually. Required: 1.) Show that the semi-annual payment is $3,850. 2.) Show that the issue price of the bonds is $116,890. Use the present value tables distributed in class. 3.) Using the $116,890 value prepare an amortization schedule for the bonds through November 1, 20x3. 4.) Prepare journal entries for the bonds for May 1, 20xl, November 1, 20xl, December 31, 20xl, and Маy 1, 20х2. 5.) Prepare entries to retire the bonds on July 1, 20x3 at 103 plus accrued interest.Use the following to answer questions 1 – 3 (Round answers to the nearest dollar) O Corp issues 5%, 20-year bonds with a total face amount of $1,000,000. The market interest rate for bonds of similar risk and maturity is 5%. Interest is paid annually. 1. $ How much will be paid in interest each interest payment? 2. $ (rounded to nearest dollar). What is the present value of the interest payments? 3. $4 What is the issue price of the bond?Fold in the Cheese, Inc. is issuing $850000 of 8% 10-year bonds. These bonds will pay semi-annual interest payments. The market interest rate is currently 6%. Required: Compute what your bonds are worth. Round all calculations to 2 decimals. Record the sale of the bond with a journal entry. Record the journal entry for your first interest payment.
- Your company issues $3,500,000 bonds at 7% interest with annual interest payments. Bonds have a maturity date in 30 years. At the time of issue, the market rate is 5%. а. Calculate the issue price of the bond. b. Record the journal entry for the issue of the bond С. Record the journal entry for the first interest payment d. How much interest is recorded on the income statement in Year 1? е. Record the journal entry for the final entry at the bond maturity date.Related to Checkpoint 9.2) (Yield to maturity) The Saleemi Corporation's $1,000 bonds pay 8 percent interest annually and have 15 years until maturity. You can purchase the bond for $1,075. a. What is the yield to maturity on this bond? b. Should you purchase the bond if the yield to maturity on a comparable-risk bond is 6 percent? Question content area bottom Part 1 a. The yield to maturity on the Saleemi bonds is enter your response here%. (Round to two decimal places.) Part 2 b. You ▼ should should not purchase the bonds because your yield to maturity on the Saleemi bonds is ▼ greater less than the one on a comparable risk bond. (Select from the drop-down menus.)Karson Company. issues 10-year bonds maturity, face value of $200,000 and16% interest rate. If the bonds are issued at 180,000 how much do you expect the market interest rate: Select one: a. % 6 b. % 4 C. %10 d. The answer does not exist e. % 8 Previous page Next page