1SavedHelpSave & ExOn January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 andDecember 31. Portions of the bond amortization schedule appear below:CashEffectiveIncrease inOutstandingPaymentPaymentInterestBalanceBalance6,544,4326,555,6546,567,4376,579,8096,592,7996,606,4396,620,7611316, 0ее316,000316,000316,000316, е0е316,000327,222327,783328,372328,990329,640330,32211,22211,78312,37212,99013,64014,3223.4638316,000316,000316,000384,243387,655391,24368,24371,65575,2437,753,1027,824,7577,900,0003940Required:1. What is the face amount of the bonds?2. What is the initial selling price of the bonds?3. What is the term to maturity in years?4. Interest is determined by what approach?5. What is the stated annual interest rate?6. What is the effective annual interest rate?7. What is the total cash interest paid over the term to maturity?8. What is the total effective interest expense recorded over the term to maturity?

Bonds are the liability of the issuer of such bond. The issue of the bond raises funds through bind…

Saved Help Save & E: On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Effective Increase in Balance Outstanding Balance Payment Payment Interest 6,544,432 6,555,654 6,567,437 6,579,809 6,592,799 6,606,439 6,620,761 1 316, 000 316, еее 327,222 327,783 328,372 328,990 329,640 330,322 11,222 11,783 12,372 12,990 13,640 14,322 2 316,000 316,000 316,000 316,000 4 6 38 316,000 316,000 316,000 384,243 387,655 391,243 68,243 7,753,102 7,824,757 7,900,000 39 71,655 75,243 40 Required: 1. What is the face amount of the bonds? 2. What is the initial selling price of the bonds? 3. What is the term to maturity in years?

Saved Help Save & E: On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Effective Increase in Balance Outstanding Balance Payment Payment Interest 6,544,432 6,555,654 6,567,437 6,579,809 6,592,799 6,606,439 6,620,761 1 316, 000 316, еее 327,222 327,783 328,372 328,990 329,640 330,322 11,222 11,783 12,372 12,990 13,640 14,322 2 316,000 316,000 316,000 316,000 4 6 38 316,000 316,000 316,000 384,243 387,655 391,243 68,243 7,753,102 7,824,757 7,900,000 39 71,655 75,243 40 Required: 1. What is the face amount of the bonds? 2. What is the initial selling price of the bonds? 3. What is the term to maturity in years?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter9: Long-term Liabilities

Section: Chapter Questions

Problem 68E: Exercise Bonds with Annual Interest Payments Kiwi Corporation issued at par $350,000, 9% bonds on...

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On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Payment CashPayment EffectiveInterest Increase inBalance OutstandingBalance 6,047,387 1 292,000 302,369 10,369 6,057,756 2 292,000 302,888 10,888 6,068,644 3 292,000 303,432 11,432 6,080,076 4 292,000 304,004 12,004 6,092,080 5 292,000 304,604 12,604 6,104,684 6 292,000 305,234 13,234 6,117,918 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 292,000 355,060 63,060 7,164,267 39 292,000 358,213 66,213 7,230,480 40 292,000 361,520 69,520 7,300,000 Required:1. What is the face amount of the bonds?2. What is the initial selling price of the bonds?3. What is the term to maturity in years?4. Interest is determined by what approach?5.…
On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay Interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below. Payment ANAS!! 1 2 1. 2. 3. 38 39 48 Cash Payment 216,000 216,000 230,997 231,597 216,000 232, 221 216,000 232,869 216,000 233,544 216,000 234, 246 216,000 216,000 216,000 Effective Increase in Interest Balance 280,008 282,568 285,230 Face amount Initial selling price Term to maturity 14,997 15,597 16,221 16,869 Required: 1. What is the face amount of the bonds? 2. What is the initial selling price of the bonds? 3. What is the term to maturity in years? 17,544 18,246 4. Interest is determined by what approach? 5. What is the stated annual Interest rate? 64,008 66,568 69,230 4. Interest is determined by what approach? 5. Annual interest rate 6. Effective annual interest rate 7. Total cash interest paid 8. Effective interest expense Outstanding Balance 5,774,920 5,789,917 6. What is the effective…
On January 1, 2021, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Cash Effective Increase in Outstanding Payment Payment Interest Balance Balance 5,802,315 1 332,000 348,139 16,139 5,818,454 2 332,000 349,107 17,107 5,835,561 3 332,000 350,134 18,134…
On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,286,574 1 370,000 377,194 7,194 6,293,768 2 370,000 377,626 7,626 6,301,394 3 370,000 378,084 8,084 6,309,478 4 370,000 378,569 8,569 6,318,047 5 370,000 379,083 9,083 6,327,130 6 370,000 379,628 9,628 6,336,758 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 370,000 432,132 62,132 7,264,327 39 370,000 435,860 65,860 7,330,187 40 370,000 439,813 69,813 7,400,000 Required: What is the face amount of the bonds? What is the initial selling price of the bonds? What is the term to maturity in years? Interest is determined by what approach? What is the stated annual interest rate? What is the effective annual interest rate? What is the total cash interest paid over the term to maturity? What is…
On January 1, 2024, Tennessee Harvester Corporation issued debenture bonds that pay interest semiannually on June 30 and December 31. Portions of the bond amortization schedule appear below: Payment Cash Payment Effective Interest Increase in Balance Outstanding Balance 6,286,574 1 370,000 377,194 7,194 6,293,768 2 370,000 377,626 7,626 6,301,394 3 370,000 378,084 8,084 6,309,478 4 370,000 378,569 8,569 6,318,047 5 370,000 379,083 9,083 6,327,130 6 370,000 379,628 9,628 6,336,758 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 370,000 432,132 62,132 7,264,327 39 370,000 435,860 65,860 7,330,187 40 370,000 439,813 69,813 7,400,000 Required: What is the face amount of the bonds? What is the initial selling price of the bonds? answer = $6,286,574 What is the term to maturity in years? answer = 20 years Interest is determined by what approach? answer = Effective interest rate What is the stated annual interest rate? What is the effective annual interest…