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?

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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on January 1, 2021. Friendly corporation issued $600,000, 4% 5-years bonds at 13 at 103. Interest is payable semiannually on July 1 and January 1. The entry to record the issuance of the bonds would include a debit to premiun on bonds payable for $18,000 discount on bonds payable for $18,000 cash for $618,000 bonds payable for $600,000
Required information Skip to question [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%. 2. Determine the total bond interest expense to be recognized over the bonds' life. Total bond interest expense over life of bonds: Amount repaid: payments of Par value at maturity Total repaid Less amount borrowed Total bond interest expense
Hi there, Can you help with attached questions, thanks kindly.
4
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 6,627,273 1 320,000 331,364 11,364 6,638,637 2 320,000 331,932 11,932 6,650,569 3 320,000 332,528 12,528 6,663,097 4 320,000 333,155 13,155 6,676,252 5 320,000 333,813 13,813 6,690,065 6 320,000 334,503 14,503 6,704,568 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 320,000 389,107 69,107 7,851,247 39 320,000 392,562 72,562 7,923,809 40 320,000 396,191 76,191 8,000,000 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?…
How do you solve portion B and C. I don't understand the calcuations.
Question 7: Messi issues $3,400,000 of 10%, 10-year bonds dated January 1, 2019, that pay interest semiannually on June 30 and December 31. The bonds are issued at a price of $3,010,000. a. Prepare the January 1 journal entry to record the bonds' issuance. For each semiannual period, compute (a) the cash payment, (6) the straight-line discount amortization, and (c) the bond interest expense. b. Determine the total bond interest expense to be recognized over the bonds' life. C. Prepare the first two years of a straight-line amortization table. d. Prepare the journal entries to record the first two interest payments.
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An accounting example: Otter Products inc issued bonds on January 1, 2019. Interest to be paid semi-annually. Term in years is 2; Face value of bonds issued is $200,000; Issue Price $206,000; Specified Interest Rate each payment period is 6% Question. Calculate a. the amount of interest paid in cash every payment period. b. The amount of amortization to be recorded at each interest payment date (use straight-line method) c. complete amoritzation table by calculating interest expense and beginning and ending bond carrying amounts at the each period over 2 years. The term is for 2 years however 3 years is showing on the workbook. How do I calcuate the 3rd year if the problem only says the term is 2 years?
If the bonds are retired on January 1, 2021, at 103, what will SIGE NA report as a loss on redemption? *see attached a. P 250,000b. P 365,000c. P 400,000d. P 425,000
Lopez Plastics Company (LPC) issued callable bonds on January 1, 2024. LPC's accountant has projected the following amortization schedule from issuance until maturity: Date Cash interest Effective interest Decrease in balance Outstanding balance 1/1/2024 $207,020 6/30/2024 $7,000 $6,211 $789 206,230 12/31/2024 7,000 6,187 813 205,417 6/30/2025 7,000 6,163 837 204,580 12/31/2025 7,000 6,137 863 203,717 6/30/2026 7,000 6,112 888 202,829 12/31/2026 7,000 6,085 915 201,913 6/30/2027 7,000 6,057 943 200,971 12/31/2027 7,000 6,029 971 200,000 What is the annual effective interest rate on the bonds?

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