On January 1, 2022, Tony Technology, Incorporated issued $750,000 of $1,000 par value, 5%, 6-year bonds. Interest is payable semiannually each January 1 and July 1 with the firstinterest payment due at the end of the period on July 1, 2022. The market rate of interest for similar nonconvertible bonds on the date of the bond issue was 8%. However, becausethese bonds are convertible, the effective rate is 6%. Each bond is convertible into 30 shares of Tony Technology's $1 par value common stock.Future Value of $1 table Future Value of an Ordinary Annuity table Future Value of an Annuity Due tablePresent Value of $1 table Present Value of an Ordinary Annuity table Present Value of an Annuity Due tableRead the requirements.***Requirement a. Determine the issue price of the debt. (Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for yourcalculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answers to the nearestwhole dollar.)4XThe issue price of the debt =-pages Get more help -Requirementsa.Determine the issue price of the debt.b. Prepare the amortization table for the bond issue through January 1, 2025.assuming that Tony Technology uses the effective interest rate method ofamortization.c.Prepare the journal entry when Tony Technology issued the bonds.d. Prepare the journal entry to record the first interest payment.e. The bonds converted on January 1, 2025. Prepare the journal entry to recordthe bond conversion.-

Par Value of bonds issued $750,000Coupon rate p.a.5.00%Effective interest rate p.a.6.00%Period of…

Answered: Requirements 3 a. Determine the issue…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Revise your worksheet to reflect these updated assumptions and then answer the questions that follow. Loan amount Annual interest rate Number of years December 31, 2021 December 31, 2022 December 31, 2023 December 31, 2024 Required: 1. Use your spreadsheet to recalculate the amortization table amounts and enter your revised results for the years indicated. Assume the bonds were issued on January 1. Note: Round your answers to 2 decimal places. No 1 Date 2 $ 465,000 3 8% $ 4 X Answer is not complete. Cash Paid 140,393.17 140,393.17 140,393.17 $ 140,393.17 $ 2. Prepare the journal entries to record the issuance of the note and the first two annual payments. Note: If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your answers to 2 decimal places. Date January 01, 2021 Cash Notes Payable Carrying Value December 31, 201 Notes Payable Interest Expense Cash 361,806.83 250,358.21 X 129.993.70 x > Answer is complete…
Part I(1) What does it mean to amortize a bond premium or discount? Why is it necessary? (2) What are the two bond amortization methods mentioned in the book and how are they different? Part IIPlease select ONE of the problems below and record the proper journal entry for recording the issuance of the bond. Hint: You will need to refer to the Present Value Tables.pdf Download Present Value Tables.pdf. Please indicate which scenario you are answering. (a) On January 1, a corporation issued a $1 million, five-year, 10 percent bond that pays interest semiannually. The market interest rate on January 1 was 12 percent. (b) On January 1, a corporation issued a $1 million, five-year, 11 percent bond that pays interest semiannually. The market interest rate on January 1 was 10 percent. Part IIIPlease describe what is meant by “Times Interest Earned.” How is it calculated? Suppose you calculated this ratio for a company for two consecutive years and the results were the following: Year…
Campbell, Inc. produces and sells outdoor equipment. On July 1, 20Y1, Campbell issued $40,000,000 of 10-year, 10% bonds at a market (effective) interest rate of 9%, receiving cash of $42,601,480. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year. Required: 1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds. 2. Journalize the entries to record the following: a. The first semiannual interest payment on December 31, 20Y1, and the amortization of the bond premium, using the interest method. b. The interest payment on June 30, 20Y2, and the amortization of the bond premium, using the interest method. 3. Determine the total interest expense for 20Y1.
A4
please help solve and explain equation
Need question with questions 18.19,20
Record bond issue record the first semiannual interest payment record the second semiannual interest payment
Question 5. On 1 January 2021 Corgi Ltd issued a £5m convertible bond at nominal value. There were no issue costs. The bond is redeemable at par on 1 January 2024 or bond holders can convert their bond into ordinary shares, with a nominal value of £1. The terms of the conversion are 2 shares for every £100 of bond. The coupon rate on the bond is 10%, payable annually in arrears. Bonds issued by similar entities without the conversion rights bear interest at 15%.
Ch Required information The following information applies to the questions displayed below.] Legacy issues $325,000 of 5%, four-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. They are issued at $292,181 when the market rate is 8%. 4. Prepare the journal entries to record the first two interest payments. View transaction list View journal entry worksheet No Date General Journal Debit Credit June 30 Bond interest expense Discount on bonds payable Cash 8,125 December 31 Bond interest expense Discount on bonds payable 8,125 Cash
3
Blossom Company sold $3,300,000, 6%, 10-year bonds on January 1, 2022. The bonds were dated January 1, 2022 and pay interest annually on January 1. Blossom Company uses the straight-line method to amortize bond premium or discount. (a)

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