Exercise 14-13 (Algo) Issuance of bonds; effective interest; financial statement effects [LO14-2] Federal Semiconductors issued 9% bonds, dated January 1, with a face amount of $810 million on January 1, 2024. • The bonds sold for $740,509,331 and mature on December 31, 2043 (20 years). • For bonds of similar risk and maturity the market yield was 10%. • Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2024, interest on June 30, 2024 (at the effective rate) and interest on December 31, 2024 (at the effective rate). 4. At what amount will Federal report the bonds among its liabilities in the December 31, 2024, balance sheet? Answer is complete but not entirely correct.

Exercise 14-13 (Algo) Issuance of bonds; effective interest; financial statement effects [LO14-2] Federal Semiconductors issued 9% bonds, dated January 1, with a face amount of $810 million on January 1, 2024. • The bonds sold for $740,509,331 and mature on December 31, 2043 (20 years). • For bonds of similar risk and maturity the market yield was 10%. • Interest is paid semiannually on June 30 and December 31. Required: 1. to 3. Prepare the journal entries to record their issuance by Federal on January 1, 2024, interest on June 30, 2024 (at the effective rate) and interest on December 31, 2024 (at the effective rate). 4. At what amount will Federal report the bonds among its liabilities in the December 31, 2024, balance sheet? Answer is complete but not entirely correct.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Required information Exercise 9-18 (Algo) Record bonds issued at a premium and related annual interest (LO9-5) Skip to question [The following information applies to the questions displayed below.] On January 1, 2024, White Water issues $530,000 of 6% bonds, due in 20 years, with interest payable annually on December 31 each year.Assuming the market interest rate on the issue date is 5%, the bonds will issue at $596,050. Exercise 9-18 (Algo) Part 1 Required: 1. Complete the first three rows of an amortization schedule. (Hint: Use Illustration 9–7, except the dates for the first three rows will be 1/1/2024, 12/31/2024, and 12/31/2025 since interest is payable annually rather than semiannually. Interest expense for the period ended December 31, 2024, is calculated as the carrying value of $596,050 times the market rate of 5%.) (Round your final answers to the nearest whole dollar.)
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Exercise 14-9 (Algo) Issuance of bonds; effective interest; amortization schedule; financial statement effects [LO14-2] When Patey Pontoons issued 6% bonds on January 1, 2024, with a face amount of $680,000, the market yield for bonds of similar risk and maturity was 11%. The bonds mature December 31, 2027 (4 years). Interest is paid semiannually on June 30 and December 31. Required: Determine the price of the bonds at January 1, 2024. (fill out table provided in image) Prepare the appropriate journal entries at maturity on December 31, 2027. Note: Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)
sh2 Universal Foods issued 8% bonds, dated January 1, with a face amount of $160 million on January 1, 2024. The bonds mature on December 31, 2038 (15 years). The market rate of interest for similar issues was 10%. Interest is paid semiannually on June 30 and December 31. Universal uses the straight-line method. Required: 1. Determine the price of the bonds at January 1, 2024. 2. to 4. Prepare the journal entries to record their issuance by Universal Foods on January 1, 2024, interest on June 30, 2024 and interest on December 31, 2031.
22.1 ABC Company issues P5,000,000, 6%, 5-year bonds dated January 1, 2025, on January 1, 2025. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. ABC uses an effective interest method of amortization and 4-decimal PVF. The initial amount of the bond liability is (Round off your answer to the nearest peso.)
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Subject: accounting
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