[The following information applies to the questions displayed below.]On January 1, 2021, Frontier World issues $39.0 million of 7% bonds, due in 10 years, with interest payable semiannually onJune 30 and December 31 each year. The proceeds will be used to build a new ride that combines a roller coaster, a waterride, a dark tunnel, and the great smell of outdoor barbeque, all in one ride.3-a. If the market rate is 8%, calculate the issue price. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from thetables provided. Do not round interest rate factors. Enter your answers in dollars not in millions. Round "Market interest rate" to 1decimal place. Round your final answers to the nearest whole dollar.)Bond CharacteristicsFace amountInterest paymentPeriods to maturityMarket interest rateIssue price$$Amount39,000,0001,365,000204.0%

The original price at which the bond is offered to investors upon its initial issuance by the issuer…

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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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Blue Skies Bank of Florida issues a three-month (90-day) negotiable CD in the amount of $20 million to ABC Insurance Company at a negotiated annual interest rate of 2.75 percent (360 day basis). Calculate the value of this CD account on the day it matures and the amount of interest income ABC will earn. What interest return will ABC Insurance earn in a 365 day year? write the laws pleas
please use P*R*T fomular as well. Thanks
The second image is the data table in the question, thank you
Tri-States Gas Producers expects to borrow $800,000 for field engineering improvements. Two methods of debt financing are possible—borrow it all from a bank or issue debenture bonds. The company will pay an effective 8% per year to the bank for 8 years. The principal on the loan will be reduced uniformly over the 8 years, with the remainder of each annual payment going toward interest. The bond issue will be for 800 ten-year bonds of $1000 each that require a 6% per year dividend payment. (a) Which method of financing is cheaper after an effective tax rate of 40% is considered? (b) Which is the cheaper method using a before-tax analysis? Is it the same as the after-tax choice?
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On June 1, 2024, Sheridan Bottle Company sold $3,420,000 in long-term bonds for $2,999,701. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. (a) Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first four years. (Round answers to 0 decimal places, e.g. 25,000.) Credit Bond Discount Date 6/1/24 5/31/25 5/31/26 5/31/27 5/31/28 $ Credit Cash Debit Interest Expense Carrying Amou $ M W Ở Aca QL Acc Qui Acce
On June 1, 2024, Everly Bottle Company sold $3,000,000 in long-term bonds for $2,631,317. The bonds will mature in 10 years and have a stated interest rate of 8% and a yield rate of 10%. The bonds pay interest annually on May 31 of each year. The bonds are to be accounted for under the effective-interest method. Instructions (a) Construct a bond amortization table for this problem to indicate the amount of interest expense and discount amortization at each May 31. Include only the first four years. Make sure all columns and rows are properly labeled. (Round to the nearest dollar.) (b) The sales price of $2,631,317 was determined from present value tables. Specifically, explain how one would determine the price using present value tables. (c) Assuming that interest and discount amortization are recorded each May 31, prepare the adjusting entry to be made on December 31, 2026. (Round to the nearest dollar.)
need all as
ABC Company wants to expand its furniture line.. The company issued $600,000, 10% bonds on March 1st, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. The company closes its books on December 31. Calculate the proceeds from the sale of the bond, prepare a bond amortization schedule for the bond’s life, and prepare all the journal entries
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On January 1, 2024, the Cook's Restaurant decides to invest in Lake Dimford bonds. The bonds mature on December 31, 2029, and pay interest on June 30 and December 31 at 6% annually. The market rate of interest was 6% on January 1, 2024, so the $140,000 maturity value bonds sold for face value. Cook's intends to hold the bonds until December 31, 2029. Next, journalize Cook's receipt of interest on June 30, 2024. Accounts and Explanation Requirement 1. Journalize the transactions related to Cook's investment in Lake Dimford bonds during 2024. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Begin by journalizing Cook's investment in Lake Dimford bonds on January 1, 2024. Date Accounts and Explanation 2024 Jan. 1 Date 2024 Jun. 30 Now journalize Cook's receipt of interest on December 31, 2024. Date Accounts and Explanation 2024 Dec. 31 Debit Debit Debit Credit Credit Credit C Requirement 2. In what category would Cook's report the…

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