Shaw Company issued P5,000,000, 12% bonds on January 1, 2012. The principal of the bonds were paid in series of P1,000,000 annually, together with any accrued interest on the outstanding bonds each December 31, starting December 31, 2012. The prevailing market rate at the time of issuance was 10%. How much is the issuance price of the bonds? Round off present value factors to FIVE DECIMAL PLACES and interest computations to WHOLE NUMBERS.

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Q: On January 1, 2013, JetNew Corp. issued $300,000 of 8%, 5-year bonds, with annual interest payments…

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Q: Which of the following statements is true when 10-year, 6% bonds with a par value of $20,000,000 are…

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A: Carrying  value  is present value of future  cash flows discount @5%(10/2)

Q: Zhang Company, an IFRS company, sold $8,000,000 of 6%, 3-year bonds on Jan 1, 2016. The bonds pay…

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Q: On January 1, 2016, Colt Co. issued ten-year bonds with a face amount of $1,000,000 and a stated…

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Q: 2. On October 1, 2011, Sammy Company issued 8,000,000 of its 10-year 8% term bonds dated October 1,…

A: Solution Given Face value 8000000 Life 10 year Coupon rate 8% Market rate…

Q: On January 1, 2017, Luyang company issued 3-year bonds payable with face value of P5,000,000 at 98.…

A: solution given Face value 5000000 Issue price 98 Bond issue cost 140000 Coupon…

Q: On January 1, 2017, Babb Trailers, Inc. issued $6,500,000 of par value bonds for $6,200,000. The…

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Q: Oriole Corporation issues $530,000 of 9% bonds, due in 10 years, with interest payable semiannually.…

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Q: On January 1, 2018, Wauwatosa Inc. issued 5- year bonds with a fave value of $200,000 and a stated…

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Q: The Bradford Company issued 10% bonds, dated January 1, with a face amount of $80 million on January…

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A: Present Value of Interest = Interest Amount * The present value of an annuity for 16 periods at 6%

Q: On January 1, 2016, Broker Corporation issued $3,000,000 par value 12%, 10-year bonds which pay…

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Q: On January 1, 2016, Knorr Corporation issued $800,000 of 6%, 5-year bonds dated January 1, 2016. The…

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Q: On January 1, 2016, Knorr Corporation issued $1,100,000 of 9%, 5-year bonds dated January 1, 2016.…

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Q: On January 1, 2015, ABC Co. issued 5-year bonds in the amount of $50, 000.  Interest of 4% is…

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Q: PTD Co. issued USD4,000,000 maturity value, 12% bonds for USD4,000,000 cash on January 1, 2014.  The…

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Q: Brooke Company issued P6,000,000, 11%, 10 year bonds on May 31, 2016 when the market interest was…

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Q: On January 1, 2006, Naruto Company issued 9% bonds in the amount of P5,000,000, which mature on…

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A: Determine present value of annuity amount (interest).

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Q: Shaw Company issued P5,000,000, 12% bonds on January 1, 2012. The principal of the bonds were paid…

A:

Q: The 10% bonds payable of Klein Company had a net carrying amount of P570,000 on December 31, 2016.…

A: The question is based on the concept of Financial Accounting.

Q: that mature at an annual installment of P500,000 every December 31. The bonds were issued to yield…

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A: When a bond is issued over and above its face value it means the bond is issued at a premium, Also…

Q: On January 1, 2012, Instaform Company issued 10% bonds with a principal amount of $50 million, dated…

A: Bonds are the debt instruments that are used by an entity for the purpose of raising finance.

Q: Problem Tower Inc. issues $40,000, 10%, 10-year bonds at January 1, 2020. Interest is paid semi-…

A: Working notes:   Issues = $40,000 Bonds sold for 113.5 Market rate was 8%