Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%. The bonds pay interest semi-annually. Assume that the bonds were issued for $565,710. Prepare an amortization table for the first three payments.SemiannualSemiannualSemiannualAmortization of Ending CarryingInterestInterest Expense Interest PaymentDiscountValuePeriod123PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345).[HINT - You definitely will want to use this EXCEL spreadsheet Chapter13 HW-02 #1 #2 Worksheets.xlsx a to assist in yourcalculations.]

Loan amortization is the process of reimbursement of loan periodically by the borrower of the loan…

Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%. The bonds pay interest se annually. Assume that the bonds were issued for $565,710. Prepare an amortization table for the first three payments. Semiannual Semiannual Amortization of Ending Carrying Semiannual Interest Interest Expense Interest Payment Discount Value Period 2 3 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345).

Haiku Inc. issued $600,000 of 10-year bonds with a stated rate of 11% when the market rate was 12%. The bonds pay interest se annually. Assume that the bonds were issued for $565,710. Prepare an amortization table for the first three payments. Semiannual Semiannual Amortization of Ending Carrying Semiannual Interest Interest Expense Interest Payment Discount Value Period 2 3 PLEASE NOTE: All whole dollar amounts will be with "$" and commas as needed (i.e. $12,345).

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Diana Inc. issued $300,000 of its 5%, 5-year bonds for $287,215 when the market rate was 6%. The bonds pay interest semi-annually. Prepare an amortization table for the first three payments. Round intermediate and final answers to whole dollar amount. Cash Interest Interest on Amortization of Payment Carrying Value Discount Carrying Value Jan. 1. Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2
On the first day of the fiscal year, a company issues a $8,500,000, 6%, 5-year bond that pays semiannual interest of $255,000 ($8,500,000 \times 6% \times (1)/(2)), receiving cash of $7,491, 128. Using straight - line amortization, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
"Ace Company issued P100,000 face of 6%, 10 year-bonds, with interest payable semi-annually. Ace uses straight-line method of amortization. The assumed price is P104,000. Ace Company's journal entry on the first semi-annual interest payment would include:" O DEBIT of: Premium on Bonds Payable of P200. O DEBIT of: Premium on Bonds Payable of P200.
On January 1, a company issues bonds dated January 1 with a par value of $350,000. The bonds mature in 5 years. The contract rate is 7%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $335,819. The journal entry to record the first interest payment using straight-line amortization is: Multiple Choice Debit Interest Expense $10,831.90; debit Discount on Bonds Payable $1,418.10; credit Cash $12,250,00 Debit Interest Expense $13,668.10, credit Discount on Bonds Payable $1,418.10, credit Cash $12,250.00 Debit Interest Expense $12,250.00, credit Cash $12.250.00 Debit interest Expense $13,668.10; credit Premium on Bonds Payable $1,418.10; credit Cash $12,250,00 Debit interest Payable $12.250.00; credit Cash $12.250.00
Oak Branch Inc. issued $900,000 of 5%, 10-year bonds when the market rate was 4%. They received $973,595. Interest was paid semi-annually. Prepare an amortization table for the first three years of the bonds. Round intermediate and final answers to whole dollar amount. Jan. 1, Year 1 June 30, Year 1 Dec. 31, Year 1 June 30, Year 2 Dec. 31, Year 2 June 30, Year 3 Dec. 31, Year 3 Cash Interest Payment ✔ 22,500 22,500 ✓ 22,500 ✔ 22,500 ✔ 22,500 ✓ 22,500 ✓ Interest on Carrying Value 19,472 19,411 V ✓ 19,350 ✔ 19,287 ✔ 19,222 ✔ 19,157 ✔ Amortization of Premium 3,028 3,089 3,150 ✔ ✓ 3,213 3,278 ✓ 3,343 ✔ Carrying Value 973,595 970,567 967,478 ✔ 964,328 ✔ 961,114 X 957,837 ✔ 954,493 X
Subject: acounting
issued $ 480,000 of 4%, 10-year bonds payable at a price of 94. The market interest rate at the date of issuance was 5%, and the bonds pay interest semiannually. The journal entry to record the first semiannual interest payment using the effective interest amortization method is?
Idaho Inc. issued $600,000 bonds with a stated rate of 9% when the market rate was 7%. They are 3-year bonds with interest to be paid annually. Assume that the bonds were issued for $630,750. Prepare an amortization table for all three payments. Annual Interest Period Annual Interest Expense Annual Interest Payment Amortization of Premium Ending Carrying Value 1 2 3
An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
Legacy issues $620,000 of 9.5%, four-year bonds dated January 1, 2021, that pay interest semiannually on June 30 and December 31. They are issued at $571,867 when the market rate is 12%. 3. Prepare a straight-line amortization table for the bonds' first two years. Note: Round your intermediate and final answers to the nearest whole dollar.
On March 1, 2002, ABC Co. issued P700,000 of 10% bonds to yield 8%. Interest is payable semiannually on February 28 and August 31. The bonds mature in 10 years. ◦Requirements: ◦A. Determine the issue price of the bonds. ◦B. Prepare an amortization table through the first 2 interest periods using the effective interest method.
Aggies Inc. issued bonds with a $450,000 face value, 8% interest rate, and a 4-year term on July 1, 2018, and received $510,000. Interest is payable semi-annually. The premium is amortized using the straight-line method. A. July 1, 2018: entry to record issuing the bonds B. Dec. 31, 2018: entry to record payment of interest to bondholders C. Dec. 31, 2018: entry to record amortization of premium Prepare journal entries for the above transactions. If an amount box does not require an entry, leave it blank. A. fill in the blank 2 fill in the blank 3 fill in the blank 5 fill in the blank 6 fill in the blank 8 fill in the blank 9 B. fill in the blank 11 fill in the blank 12 fill in the blank 14 fill in the blank 15 C.

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