On January 1, 2024, NFB Visual Aids issued $660,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. . On December 31, 2024, the fair value of the bonds was $550,000 as determined by their market value in the over-the-counter market. . General (risk-free) interest rates did not change during 2024. Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b to 4. Prepare the necessary journal entries. 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) Complete this
On January 1, 2024, NFB Visual Aids issued $660,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. . On December 31, 2024, the fair value of the bonds was $550,000 as determined by their market value in the over-the-counter market. . General (risk-free) interest rates did not change during 2024. Required: 1-a. Determine the price of the bonds at January 1, 2024. 1-b to 4. Prepare the necessary journal entries. 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) Complete this
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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On January 1, 2024, NFB Visual Aids issued $660,000 of its 20-year, 8% bonds.
The bonds were priced to yield 10%.
Interest is payable semiannually on June 30 and December 31.
NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value.
On December 31, 2024, the fair value of the bonds was $550,000 as determined by their market value in the over-the-counter
market.
General (risk-free) interest rates did not change during 2024.
.
.
■
1
.
Required:
1-a. Determine the price of the bonds at January 1, 2024.
1-b to 4. Prepare the necessary journal entries.
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)
Complete this question by entering your answers in the tabs below.
Req 1A
Prepare the necessary journal entries.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate
calculations and final answers to the nearest whole dollar.
View transaction list
No
Req 18 to 4
2
3
1 January 01, 2024 Cash
4
Date
View journal entry worksheet
June 30, 2024
December 31,
2024
December 31,
2024
General Journal
Discount on bonds payable
Bonds payable
Interest expense
Discount on bonds payable
Cash
Interest expense
Discount on bonds payable
Cash
Loss on bonds payable (unrealized, OCI)
Fair value adjustment
< Req 1A
Reg 13 to 1
Debit
Credit
660,000
(X)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F63640e1c-decf-4d4f-ab0c-8a1d9c73b348%2F5af627bd-bb35-4fdf-8eea-d542cb3f5b3f%2Fwi1fmoh_processed.jpeg&w=3840&q=75)
Transcribed Image Text:ces
On January 1, 2024, NFB Visual Aids issued $660,000 of its 20-year, 8% bonds.
The bonds were priced to yield 10%.
Interest is payable semiannually on June 30 and December 31.
NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value.
On December 31, 2024, the fair value of the bonds was $550,000 as determined by their market value in the over-the-counter
market.
General (risk-free) interest rates did not change during 2024.
.
.
■
1
.
Required:
1-a. Determine the price of the bonds at January 1, 2024.
1-b to 4. Prepare the necessary journal entries.
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)
Complete this question by entering your answers in the tabs below.
Req 1A
Prepare the necessary journal entries.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your intermediate
calculations and final answers to the nearest whole dollar.
View transaction list
No
Req 18 to 4
2
3
1 January 01, 2024 Cash
4
Date
View journal entry worksheet
June 30, 2024
December 31,
2024
December 31,
2024
General Journal
Discount on bonds payable
Bonds payable
Interest expense
Discount on bonds payable
Cash
Interest expense
Discount on bonds payable
Cash
Loss on bonds payable (unrealized, OCI)
Fair value adjustment
< Req 1A
Reg 13 to 1
Debit
Credit
660,000
(X)
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