The debt is amortized by equal payments made at the end of each payment interval. Compute (a) the size of the periodic payments; (b) the outstanding principal at the time indicated; (c) the interestpaid by the payment following the time indicated for finding the outstanding principal; and (d) the principal repaid by the same payment as in part c.Debt PrincipalInterest RateConversionPeriodquarterlyOutstandingPrincipal After:8th payment$14,000.00RepaymentPeriod7 yearsPaymentInterval1 month9%(a) The size of the periodic payment is $(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Debt Amortization or loan amortization is the payment of amount taken along with the interest at a…

Answered: The debt amortized by equal payments…

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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vd subject-Accounting
The debt in the table below is retired by the sinking fund method. Interest payments on the debt are made at the end of each payment interval and the payments the sinking fund are made at the same time. Determine the following (a) the size of the periodic interest expense of the debt, (b) the size of the periodic payment into the sinking fund, (c) the periodic cost of the debt, (d) the book value of the debt at the time indicated. Debt Principal $19,000 Term of debt 10 years Payment Interval Interest Rate on Debt Interest Rate on Fund Conversion Period 3 months 6.5% 7% quarterly Book Value Required After 8 years (a) The size of the periodic interest expense is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $50,000,000 of 10-year, 7% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 9%, resulting in Ebert Company receiving cash of $43,495,895. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round amounts to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.
Amortization Schedule - Long-term Note January 1, 2020 Wang Co borrows $40,000 at 5% for 7 years. Determine the blended annual December 31, year-end payments. Prepare an amortization schedule. N (period of time) | (Interest) PV (Present Value FV (Future Value) PMT (Annuity) Required 1 Prepare the loan amortization schedule using the effective interest method. Beginning Balance Interest Principal Payment Annual Principal Page T Period Раде Payment Expense Balance 1 2 3 4 6 7 2 Determine the amount that would be presented on the balance sheet at December 31, 2020 (at end of year 1) as: Current portion of long-term note at December 31, 2020 3 Prepare the journal entry to record the last loan payment. General Journal DR CR
Lime Co. incurs a $4,000 note with equal principal installment payments due for the next eight years. What is the amount of the current portion of the noncurrent note payable due in the second year? A. $800 B. $1,000 C. nothing, since this is a noncurrent note payment D. $500
A debt of $13,000 with interest at 5% compounded semi-annually is repaid by payments of $1,850 made at the end of every 3 months. Construct an amortization schedule showing the total paid and the total cost of the debt. Complete the amorization schedule. (Round to the nearest cent as needed.) Outstanding Principal Balance $13,000 Payment Number Amount Paid Interest Paid Principal Repaid 1 $1,850 2 $1,850 3 $1,850 $ $ 4 $1,850 $ 5 $1,850 $4 6 $1.850 $ 7 $1,850 $ $ 8 $0 The total paid is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) The total interest is S
Find the total number of compounding periods and the interest rate per period for the investment. Term ofInvestment Nominal(Annual) Rate (%) InterestCompounded CompoundingPeriods Rate perPeriod (%) 4 years 4.5 semiannually
Simple and Compound Interesta. For each of the following notes, calculate the simple interest due at the end of the term. Round to the nearest dollar. Note Principal Rate Term 1 $18,000 4% 6 years 2 $18,000 6% 4 years 3 $18,000 8% 3 years Note 1 Answer Note 2 Answer Note 3 Answer b. Compute the amount of interest due at the end of the term for each of the above notes assuming interest is compounded annually.Use Excel or a financial calculator for your computations. Round your answer to the nearest dollar. Note 1 Answer Note 2 Answer Note 3 Answer
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What account would be debited (1), what account would be credit (2), and what amount would be paid to record the journal entry for each interest payment based on a $200,000 five-year, 10% bond and the bond was issued at $192,462 (11%) and interest is paid semiannually? JOURNAL Page 25 DATE DESCRIPTION P.REF. DEBIT CREDIT (1) ? (2) ? (1) Interest Expense debit $11,000, and (2) Cash credit $11,000 (1) Interest Expense debit $10,000 and (2) Cash credit $10,000 (1) Cash debit $20,000 and (2) Interest Expense credit $20,000 (1) Cash debit $22,000, and (2) Interest Expense credit $22,000
Amortize Discount by Interest Method On the first day of its fiscal year, Ebert Company issued $27,000,000 of 5-year, 9% bonds to finance its operations. Interest is payable semiannually. The bonds were issued at a market (effective) interest rate of 11%, resulting in Ebert receiving cash of $24,964,830. The company uses the interest method. a. Journalize the entries to record the following: 1. Sale of the bonds. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 2. First semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. 3. Second semiannual interest payment, including amortization of discount. Round to the nearest dollar. If an amount box does not require an entry, leave it blank. b. Compute the amount of the bond interest expense for the first year. Round to the nearest dollar. Annual interest paid Discount amortized Interest expense for first…
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?

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