I. On April 1, 2024 Cowell Company issued $ 3,000,000, 20-year, 5% bonds at 95 so that investors would receive a 6% return on their investments. Interest is payable semi- annually. III. Go back to Part I's facts. a) Make the journal entry if the bond were to be retired on April 1, 2026 at 101. b) Same as a) but what if it were to be retired on April 1, 2028.

I. On April 1, 2024 Cowell Company issued $ 3,000,000, 20-year, 5% bonds at 95 so that investors would receive a 6% return on their investments. Interest is payable semi- annually. III. Go back to Part I's facts. a) Make the journal entry if the bond were to be retired on April 1, 2026 at 101. b) Same as a) but what if it were to be retired on April 1, 2028.

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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On January 1, 2024, Anne Teak Furniture issued $100,000 of 12% bonds, dated January 1. Interest is payable semiannually on June 30 and December 31. The bonds mature in 4 years. The annual market rate for bonds of similar risk and maturity is 14%. What was the issue price of the bonds? 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) Multiple Choice $89,460 $120,942 $95,460 $94,029
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Take me to the text On January 1, 2023, Bootic Inc. issued $3,182,000 worth of 4% redeemable bonds due in 9 years. At the time of issue, the market interest rate was 3% (interest is due annually). Calculate the discount or premium at which the bonds were issued. The company's year end is December 31. Do not enter dollar signs or commas in the input boxes. Round your answer to the nearest whole number. For bond calculations, use the PV tables at the end of Chapter 7 textbook or use a financial calculator. The bond is issued at a: Premium + Premium/Discount: $ Check