Required informationExercise 9-21 (Algo) Calculate the issue price of bonds (LO9-7)[The following information applies to the questions displayed below.]On January 1, 2024, Ocean World issues $39.4 million of 96 bonds, due in 20 years, with interest payable semiannuallyon June 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, awater ride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.Exercise 9-21 (Algo) Part 1Required:1-a. If the market rate is 8%, calculate the issue price. (FV of $1. PV of $1. FVA of $1, and PVA of $1)1-b. Will the bonds issue at face amount, a discount, or a premium?

Par value = $39,400,000Coupon rate = 9%Market rate = 8%Years to maturity = 20 yearsCompounding…

Answered: Required information Exercise 9-21…

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 Problem 9-5B (Algo) Record bond issue and related interest (LO9-5) [The following information applies to the questions displayed below.] Viking Voyager specializes in the design and production of replica Viking boats. On January 1, 2024, the company issues $2,200,000 of 8% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year. Problem 9-5B (Algo) Part 3 3. If the market interest rate is 7%, the bonds will issue at $2,434,906. Record the bond issue on January 1, 2024, and the first two semiannual interest payments on June 30, 2024, and December 31, 2024. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to the nearest dollar amount.) View transaction list View journal entry worksheet No 1 2 3 Date January 01, 2024 Cash June 30, 2024 December 31, 2024 General Journal Bonds Payable Premium on Bonds Payable Interest Expense Premium on…
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! Required information Exercise 9-21 (Algo) Calculate the issue price of bonds (LO9-7) [The following information applies to the questions displayed below.] On January 1, 2024, Ocean World issues $39.1 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. Exercise 9-21 (Algo) Part 2 2-8. If the market rate is 9%, calculate the issue price. (EV of $1. PV of $1. FVA of $1, and PVA of $1) 2-b. Will the bonds issue at face amount, a discount, or a premium? Complete this question by entering your answers in the tabs below. Reg 2a Reg 2b If the market rate is 9%, 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 (i.e., $5.5 million should be entered as…
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Required information [The following information applies to the questions displayed below] On January 1, 2021, Wild Rapids Water Park issues $40.0 million of 8% bonds to finance expansion. The bonds are due in 15 years, with interest payable semiannually on June 30 and December 31 each year. 2-a. 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. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1 decimal place. Round your final answers to the nearest whole dollar.) Bond Characteristics Amount Face amount 40.000 000 Interest payment Periods to maturity Market interest rate Issue price 2-b. The bonds will issue at OA Discount OA Premium O Face amount

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