On January 1, 2024, Adventure World issues $40.4 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. Required: 1-a. If the market rate is 8%, calculate the issue price. (EV of $1. PV of $1. EVA of $1, and PVA of SD 1-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. Req 1b If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars not in millions (e. $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar) Amount Bond Characteristics Face amount Interest payment Number of periods Market interest rate sue price $ 40,400,000
On January 1, 2024, Adventure World issues $40.4 million of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride. Required: 1-a. If the market rate is 8%, calculate the issue price. (EV of $1. PV of $1. EVA of $1, and PVA of SD 1-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. Req 1b If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars not in millions (e. $5.5 million should be entered as 5,500,000). Round your final answers to the nearest whole dollar) Amount Bond Characteristics Face amount Interest payment Number of periods Market interest rate sue price $ 40,400,000
Chapter13: Long-term Liabilities
Section: Chapter Questions
Problem 9Q: What kind of account is the Discount on Bonds Payable? What kind of account is the Premium on Bonds...
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Subject : Accounting
Transcribed Image Text:Complete this question by entering your answers in the tabs below.
Req la
Req 1b
Will the bonds issue at face amount, a discount, or a premium?
Will the bonds issue at face amount, a discount, or a premium?
< Req 1a
Req 1b.
![13
M
ences
Required information.
[The following information applies to the questions displayed below]
On January 1, 2024, Adventure World issues $40.4 million of 9% bonds, due in 20 years, with interest payable
semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a
roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.
Required:
1-a. If the market rate is 8%, calculate the issue price. (EV of $1. PV of $1. EVA of $1. and PVA of $D)
1-b. Will the bonds issue at face amount, a discount, or a premium?
Complete this question by entering your answers in the tabs below.
Regla
If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate
factor(s) from the tables provided. Enter your answers in dollars not in millions (ie. $5.5 million should be entered as
5,500,000). Round your final answers to the nearest whole dollar)
Reg 1b
Bond Characteristics
Face amount
Interest payment
Number of periods
Market interest rate
Issue price
$
Amount
40,400,000
Req 1b >](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8fc66754-dc05-453a-a4c8-c79196bcb5d1%2F0d7a8a8c-9866-42c7-b19c-d83f3cf417b0%2Fr6ak6s1_processed.jpeg&w=3840&q=75)
Transcribed Image Text:13
M
ences
Required information.
[The following information applies to the questions displayed below]
On January 1, 2024, Adventure World issues $40.4 million of 9% bonds, due in 20 years, with interest payable
semiannually on June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a
roller coaster, a water ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.
Required:
1-a. If the market rate is 8%, calculate the issue price. (EV of $1. PV of $1. EVA of $1. and PVA of $D)
1-b. Will the bonds issue at face amount, a discount, or a premium?
Complete this question by entering your answers in the tabs below.
Regla
If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate
factor(s) from the tables provided. Enter your answers in dollars not in millions (ie. $5.5 million should be entered as
5,500,000). Round your final answers to the nearest whole dollar)
Reg 1b
Bond Characteristics
Face amount
Interest payment
Number of periods
Market interest rate
Issue price
$
Amount
40,400,000
Req 1b >
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