TB PR Qu. 9-224 (Algo) On January 1, 2024, Lakeside Amusement...On January 1, 2024, Lakeside Amusement Park issues $690,000 of 5% bonds, due in 20 years, with interest payable semiannually onJune 30 and December 31 each year.Assume that the market interest rate is 5% and the bonds issue at face amount.Required:1a. Calculate the issue price of a bond.1b. Complete the first three rows of an amortization schedule. (FV of $1. PV of $1. FVA of $1, and PVA of $1)Assume that the market interest rate is 6% and the bonds issue at a discount.2a. Calculate the issue price of a bond.2b. Complete the first three rows of an amortization schedule. (FV of $1. PV of $1. FVA of $1, and PVA of $1)Assume that the market interest rate is 4% and the bonds issue at a premium.3a. Calculate the issue price of a bond.3b. Complete the first three rows of an amortization schedule. (FV of $1. PV of $1. FVA of $1, and PVA of $1)Complete this question by entering your answers in the tabs below.Required 1A Required 18 Required 2ACalculate the issue price of a bond.Required 2B Required 3ARequired 3B

Par value = $690,000Coupon rate = 5%Years to maturity = 20 years

Answered: TB PR Qu. 9-224 (Algo) On January 1,…

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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Discount-Mart issues $19 million in bonds on January 1, 2021. The bonds have a ten-year term and pay interest semiannually on June 30 and December 31 each year. Below is a partial bond amortization schedule for the bonds: Date 01/01/2021 06/30/2021 $950,000 12/31/2021 950,000 06/30/2022 950,000 12/31/2022 950,000 Cash Paid Multiple Choice 5% 12%. Interest Expense $1,009,243 1,012,797 1,016,565 1,020,559 What is the market annual rate of interest on the bonds? (Hint: Be sure to provide the annual rate rather than the six-month rate.) (Do not round your intermediate calculations.) 10%. Increase in Carrying Value $59,243 62,797 66,565 70,559 Carrying Value $16,820,715 16,879,958 16,942,755 17,009,320 17,079,879
What would be the required journal entry on the date of issuance if a company issues $100,000 five-year, 10% bond for $103,769 and the interest is to be paid semiannually? debit cash, $100,000, and credit bond payable $100,000 debit cash $103,769, and credit bond payable $100,000 and credit premium on bonds payable $3,769 debit bonds payable $103,769 and debit discount on bonds payable $3,769, and credit cash $100,000 debit cash $103,769 and debit discount on bonds payable $3,769, and credit bonds payable $100,000
On January 1, 2021, Splash City issues $400,000 of 8% bonds, due in 15 years, with interest payable semiannually on June 30 and December 31 each year.Assuming the market interest rate on the issue date is 9%, the bonds will issue at $367,422. Exercise 9-8A Part 2 2. Record the bond issue on January 1, 2021, and the first two semiannual interest payments on June 30, 2021, and December 31, 2021. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Round your intermediate and final answers to the nearest whole dollar.)
Problem #2 Assume that the Valenzuela Corporation issues P1,000,000, 5-year, 12% bonds on March 2020. bonds, dated January 2, 2020, pay interest semiannually on January 2 and July 1. Requirement(s) Compute the amount of interest accrued on March 1 and its corresponding journal entry. Compute the amount of interest accrued on July 1 and its corresponding journal entry.
Kingbird corporation issued $460,000 8% 20 year bond on January 1,2022 for $418,008.this price resulted in an effective interest rate of 9% on the bonds. Interest is payable annually on January 1. Kingbird uses the effective interest method to amortize bond premium or discount. Prepare the journal entry to record the payment of interest on January 1 2023
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answer in text form please (without image)
On the first day of the fiscal year, a company issues a $8,500,000, 6%, 5-year bond that pays semiannual interest of $255,000 ($8,500,000 \times 6% \times (1)/(2)), receiving cash of $7,491, 128. Using straight - line amortization, journalize the first interest payment and the amortization of the related bond discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank.
1->> O O O Baxter's Hamburgers issued 6%, 10-year bonds payable at 95 on December 31, 2024. At December 31, 2026, Baxder reported the bonds payable as follows: (Click the icon to view the bonds payable.) Requirement 1. Answer the following questions about Baxter's bonds payable: a. What is the maturity value of the bonds? b. What is the carrying amount of the bonds at December 31, 2026? c. What is the semiannual cash interest payment on the bonds? d. How much interest expense should the company record each year? Requirement 2. Record the June 30, 2026, semiannual interest payment and amortization of discount. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date 2026 Jun. 30 Accounts and Explanation Debit Baxter's pays semiannual interest each June 30 and December 31. (Assume bonds payable are amortized using the straight-line amortization method.) Read the requirements. Credit D
K Optical Dispensary borrowed $960.000 on January 2, 2024, by issuing a 12% serial bond payable that must be paid in three equal annual installments plus interest for the year. The first payment of principal and interest comes due January 2, 2025 Complete the missing information. Assume bonds are issued at face value. (For accounts with a 50 balance, make sure to enter to in the appropriate cell) Current Liabilities Bonds Payable Interest Payable Long-Term Liabilities: Bonds Payable 2024 December 31 2025 2026
Please help me to answer with clear computation the Required 1 and 2 of this Problem. Thank you so much!

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