Terra Ccompany issued a $300,000, 7.50%, 10-year bond on June 1, 2015. Additional information onthe bond follows:Bond Date:January 1, 2015December 31, 2024Maturity Date:Yield (Market) Rate:Interest Payment Date::Terra's year end:Required: Round calculations to the nearest dollara) Calculate the present value of the bond assuming that it had been issued on January 1, 2015. Showcalculations/keystrokes.8%Interest is paid annually on December 31 of each yearSeptember 30b) Prepare a bond amortization table from January 1, 2015 until December 31, 2018. Show eachannual interest payment.c) Calculate the total amount of cash received by Terra on June 1, 2015, reflecting the fact the bondwas issued on June 1, 2015. Make the journal entry to record the bond issue on June 1, 2015.

Bond are financial instruments which are issued to raise funds. Bonds can be convertible or non…

Terra Ccompany issued a $300,000, 7.50%, 10-year bond on June 1, 2015. Additional information on the bond follows: Bond Date: Maturity Date: Yield (Market) Rate: Interest Payment Date:: Terra's year end: Required: Round calculations to the nearest dollar a) Calculate the present value of the bond assuming that it had been issued on January 1, 2015. Show calculations/keystrokes. January 1, 2015 December 31, 2024 8% Interest is paid annually on December 31 of each year September 30 b) Prepare a bond amortization table from January 1, 2015 until December 31, 2018. Show each annual interest payment. c) Calculate the total amount of cash received by Terra on June 1, 2015, reflecting the fact the bond was issued on June 1, 2015. Make the journal entry to record the bond issue on June 1, 2015.

Terra Ccompany issued a $300,000, 7.50%, 10-year bond on June 1, 2015. Additional information on the bond follows: Bond Date: Maturity Date: Yield (Market) Rate: Interest Payment Date:: Terra's year end: Required: Round calculations to the nearest dollar a) Calculate the present value of the bond assuming that it had been issued on January 1, 2015. Show calculations/keystrokes. January 1, 2015 December 31, 2024 8% Interest is paid annually on December 31 of each year September 30 b) Prepare a bond amortization table from January 1, 2015 until December 31, 2018. Show each annual interest payment. c) Calculate the total amount of cash received by Terra on June 1, 2015, reflecting the fact the bond was issued on June 1, 2015. Make the journal entry to record the bond issue on June 1, 2015.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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