A.1 Required information[The following information applies to the questions displayed below.]Claire Corporation is planning to issue bonds with a face value of $180,000 and a coupon rate of 12 percent. The bondsmature in two years and pay interest quarterly every March 31, June 30, September 30, and December 31. All of the bondswere sold on January 1 of this year. Claire uses the effective-interest amortization method and also uses a discountaccount. Assume an annual market rate of interest of 16 percent.(FV of $1, PV of $1, FVA of $1, and PVA of $1)Note: Use appropriate factor(s) from the tables provided.3. What bonds payable amount will Claire report on this year's December 31 balance sheet?Note: Round your final answer to nearest whole dollar amount.Long-term liabilitiesBonds payableCLAIRE CORPORATIONBalance Sheet (Partial)At December 31$135,167Bond discount

Step 1:Computation of the issue price of the bonds on January 1, this year: Rate (r) = Quarterly…

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Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 4EA: On January 1, 2018, Wawatosa Inc. issued 5-year bonds with a face value of $200,000 and a stated...

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Krystian Inc. issued 10-year bonds with a face value of $100,000 and a stated rate of 4% when the market rate was 6%. Interest was paid semi-annually. Calculate and explain the timing of the cash flows the purchaser of the bonds (the investor) will receive throughout the bond term. Would an investor be willing to pay more or less than face value for this bond?
Required information. [The following information applies to the questions displayed below.] PowerTap Utilities is planning to issue bonds with a face value of $2,600,000 and a coupon rate of 9 percent. The bonds mature in 9-years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. PowerTap uses the effective-interest amortization method. Assume an annual market rate of interest of 10 percent. (EV of $1. PV of $1. EVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. What was the issue price on January 1 of this year? Note: Round your final answer to nearest whole dollar amount. Issue price
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warded Denzel Corporation is planning to issue bonds with a face value of $630,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (FV of $1, PV of $1, FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet?
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Required information Skip to question [The following information applies to the questions displayed below.] Lemond Corporation is planning to issue bonds with a face value of $200,000 and a coupon rate of 10 percent. The bonds mature in three years and pay interest semiannually every June 30 and December 31. All the bonds were sold on January 1 of this year. Lemond uses the effective-interest amortization method and also uses a premium account. Assume an annual market rate of interest of 8.5 percent. (FV of S1, PV of S1. FVA of $1. and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 3. What bonds payable amount will Lemond report on this year's December 31 balance sheet? Note: Do not round your intermediate calculations. Round your final answers to nearest whole dollar amount.
Trew Company plans to issue bonds with a face value of $904,500 and a coupon rate of 6 percent. The bonds will mature in 10 years and pay interest semiannually every June 30 and December 31. All of the bonds are sold on January 1 of this year. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar.) Determine the issuance price of the bonds assuming an annual market rate of interest of 8.5 percent. I don't know how to get the issuance price.
Denzel Corporation is planning to issue bonds with a face value of $600,000 and a coupon rate of 7.5 percent. The bonds mature in four years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Denzel uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent (FV of $1. PV of $1. FVA of $1, and PVA of $1) Note: Use appropriate factor(s) from the tables provided. Required: 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. 3. What bonds payable amount will Denzel report on its June 30 balance sheet? Complete this question by entering your answers in the tabs below. Required 1 and 2 Required 3 1. and 2. Prepare the journal entries to record the issuance of the bonds and interest payment on June 30 of this year. (If no entry is required for a transaction/event, select "No journal…

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